Ijarah Definition of Financial Times Lexicon Sample

Question: The Ijarah contract is said to be similar to conventional leasing. Explain the range of Ijarah-based contracts used by Islamic Financial Institutions. With reference to operating and financial leases discuss the similarities and differences between Ijarah and leasing. Outline how any differences in contract lead to differing accounting treatment of these contracts. Discuss the AAOIFI standards and IFRS recommended accounting treatment of the Ijarah/leasing contracts. Suggest ways of reconciling any variations in interpretation. Answer: Introuction This research paper would explain the concepts, roles and importance of the Ijarah contract in the form of conventional leasing. In adition to this, it should also be noted down that, this research paper would also explain the range of Ijarah-based contracts used by Islamic Financial Institutions. On the other hand, with reference to operating and financial leases, this research paper would discuss the similarities and differences between Ijarah and leasing. At the same time, this rserach paper would also help the readers in understanding that how any differences in contract lead to differing accounting treatment of these contracts. Apart from this, this paper would also discuss the AAOIFI standards and IFRS recommended accounting treatment of the Ijarah/leasing contracts. Finally, this paper would also suggest different ways of reconciling any variations in interpretation. Moreover, it should also be noted down that, this research paper would also be more beneficial, helpful and effective for the readers, researchers and students in understanding a wide range of topics in the area of Islamic finance. At the same time, this paper would also be more effective and appropriate in using concepts of Ijarah contract in the form of conventional leasing. So, this this paper would be more beneficial and effective. Reserach Methods In order to fulfil the research objectives and aims in the context of this paper, secondary source of information are used so that associated outcomes can be achieved in an effective and proper manner. For case, for this research paper, books, research articles, published material, current news etc are used as means of secondary source of information in order to collect the information asocisted with the topics. Ijarah Contract Ijarah contract is the maid of the arabic word ijara that means the providing services and goods temporarily for a wage. It indicates the ijarah contract means providing products and services on a lease or rental term. In the Islamic banking, the ijara contract is given the right to use the object of a person or party for a period of time but the owner retains the ownership of the assets. The ijara contract is similar to a lease in thier the owner rents or leases his property or goods to a lessee for a fee or rent for a specified number of periods (Saleem, 2012). The ijara contract in the Islamic banking is necessary of the same design as an instalment leasing agreement. For example, in ijara contract, th lessor is responsible for najor maintenance in the conventional lease contracts. The Islamic Finance Accounting Standard (IFAS) Ijarah was issued by the Insititute of Chartered Accounts of Pakistan and its notification SRO 431 (i)/2007. IFAS becomes operative for financial ststements covring periods after July 01, 2007. The following features of ijara based lease contract is differentiate from a conventional lease: The lessor must own the assets for the full lease period If the lessee fails to payments or delays payments then the lessor can not have right to charge compound interest (Ahmad, 2009) The leased assets is used by lesser for special perspose that is mentioned in the contract. Ijara is an exchange transaction in which a known advantage emerging from a predetermined resource is made accessible consequently for an installment, however where responsibility for resource itself is not exchanged. The ijara contract is basically of the same outline as a portion renting assention. Where altered resources are the subject of the lease, such can come back to the lessor toward the end of the lease period, in which case the lease tackles the highlights of a working rent and hence just a part amortization of the rented resource's quality results. In an option approach, the renter can concur at the start to purchase the benefit toward the end of the lease period in which case the lease tackles the way of a contract buy known as ijara wa iqtina (actually, rent and possession). A few legal scholars don't allow this last plan on the premise that it speaks to pretty much an ensured monetary return at the beginning to the lessor, similarly as a present day interest-based mone y lease. The terms of ijara are sufficiently adaptable to be connected to the contracting of a worker by a head honcho consequently for a lease that is really an altered compensation (Iqbal Mirakhor, 2011). Some for the most part concurred conditions for ijara are as per the following: The leased item should be exchanged to the resident on consummation of the lease understanding and ought to be of a condition that is fit for execution of the obliged undertakings. The lessor ought to exchange the rented things to the renter in their finished structure. The lessor should transfer the leased items to the lessee in their completed form. The usufruct of the leased item should have value (Ahmad, 2009) The sum and timing of the lease installments ought to be concurred ahead of time, however the concurred timetable and measure of those installments require not be uniform. The lease installment timetable gets to be dynamic upon complete securing of the usufruct of the rented products, whether such usufruct is indeed delighted in by the lessor or not. The time of the lease must be determined. The states of utilization of the rented things must be expressed. The lessor must have full ownership and legitimate responsibility for resource preceding renting it (Eisenberg, 2012). The leased asset must keep on existing all through the term of the lease. Things which are devoured during the time spent utilization, ammo for case, can't be rented. In contrast with most traditional fund rents, the obligation regarding support and protection of the rented thing under ijara remains that of the lessor all through. A cost can't be foreordained for the offer of the benefit at the expiry of the lease. Notwithstanding, lessor and resident may concur the continuation of the lease or the offer of the rented advantage for the renter under another understanding toward the end of the starting lease period (Ayub, 2009). In the occasion generally installment of rental, the ijara may be ended quickly. The lessor may guarantee pay for any harm brought on to the rented resources as an aftereffect of care. In recent times, many Ijarah-based contracts or products used by Islamic Financial Institutions with different combinations of contracts such as ADCB (Abu Dhabi Commercial Bank) offers ijara home financing, as does SABB (Saudi British Bank) Amanah. Moreover, Maybank Malaysian-based institute offers car financing with a combination of an ijara contract and a bai (purchase) contract (Iqbal Mirakhor, 2011). According to the sharia principles, the mainly three types of Ijarah-based contracts or ijara arrangements exist in the Islamic Financial Institutions these are: Lease-ending ownership/lease with ownership (ijara muntahia bitamleek/ijara wa iqtina): In this ihara contact, the leaseholder (lessee) the leased asset at the end of lease period. This contract does not contain any promise to buy and sell the assets at the end of lease period but the bank may offer a verbal promise of transfer of ownership or purchase schedule for the asset (Ayub, 2009). It means in this contract, the leaseholder is also allowed to mke a verbal promis to purchase the asset. In this situation, the purchase price is decided on the basis of market value of the asset or a negotiatible price. Operating lease (operating ijara): Operating lease ijara-based contract does not included any promise related to purchase the asset at the end of the lease contract. Moreover, this ijara contract is the hire arrangement or contract with the lessor only (Mourik Walton, 2013). Forward lease (ijara mawsoofa bil thimma): Forward lease ijara-based contract is a combination of redeemable leasing and construction finance (istisna) agreement. This lease is accomplished for a future date, so it is called forword leasing. Forward lease ijara-based contract purchase the project (generally a construction project) as a whole at its closing or completion (Eisenberg, 2012). Major Differences Between Acciounting of Ijarah and Finance Leasing The below table indicates the major differences in the finance leasing and ijarah leasing: Finance leasing Ijarah Based Leasing Leases are recorded ad financing in the book of lessor (the bank) Ijarah assets are recorded at cost less accumulated depreciation and impairment. Un-earned income such as exceess of the agreegate rentals over cost of the asset are recorded at the inception of lease and amortized over the lease tearm Rentaal from ijarah is only recognized as income on accrual basis. Profision against doughtful debts is calculated on the basis of creterial given in prudential regulations for banks Costs included depreciation is charged to income statement Leases are disclosed net of provision, income suspense and unearned income. Assets leased out should be classified according to its nature and distinguished from the assets in own use such as plant, machinerary, vehicle, etc. Revenue is recorded to the extent of income portion of the rentals based on the manner that produce a constant rate of return. Lessor should make an imparment testing for the asset on a regular basis according to the requirements of IAS 36 (Impairment of assets). (Source: Iqbal Mirakhor, 2011) Differing Accounting Treatment of These Contracts Ijarah accounting policy is the different with the lease accounting that are described in the below: Ijarah Asset Recognistion: All ijarah transactions are to be recorded as Asset Acquired dor Ijarah at sum of all cost incurred through the bank in acquiring the asset. The other terms are: Assets are to be expressed at their cost less accumuled depreciation and impairment if any. Depreciation on asset is to be charged to income applying the method that reflects the pattern in that the asset future economic benefits are expected to be consumed by the bank. In consider of addition and disposal of assets, depreciation of asset will be charged from the month of acquisition till the month of disposal (Ayub, 2009). Revenue recognition: In Ijarah lease contract, rentals are to be recognized as income on accrual basis over the lease period in a systematic manner. Expenses recognise: In Ijarah lease contract, carring costs including depreciation and incurred in earning the Ijarah income are recognized as an income in the owner or bank income statement (Eisenberg, 2012). AAOIFI standards and IFRS Accounting Treatment of the Ijarah The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) standards and International Financial Reporting Standards (IFRS) recommended of nthe banks, financial institutes and owners regarding the accounting treatment of the Ijarah/leasing contracts. The below table described the key differences of accounting treatment between IFRS and AAOIFI: Item IFRS (IAS 17) AAOIFI (FAS 8) Classification of leases Lease is named a money lease on the off chance that it exchanges generously all the dangers and prizes accidental to possession. A lease is named a working lease in the event that it doesn't exchange generously all the dangers and rewards accidental to proprietorship All leases should be classified as an operating lease. Ijarah ending with an exchange of possession ought to be dealt with as two different exchanges of working lease and deal, and not as a money lease. Leases in the financial statements of lessees At the beginning of the lease term, residents should perceive money rents as resources and liabilities in their announcements of budgetary position at sums equivalent to the reasonable estimation of the rented property or, if bring down, the present estimation of the base lease installments, every decided at the commencement of the lease. The markdown rate to be utilized as a part of computing the present estimation of the base lease installments is the interest rate understood in the lease, if this is practicable to focus; if not, the renter's incremental obtaining rate might be utilized. Any starting direct expenses of the tenant are added to the sum perceived as a benefit (Ayub, 2009). In the event of Ijarah consummation with an exchange of possession, the tenant would perceive lease installments as costs all through the lease term. At the point when the benefit is exchanged to the tenant, the resident would perceive the advantage obtained (Eisenberg, 2012). Leases in the financial statements of lessors Lessors might perceive resources held under a fund rent in their announcements of monetary position and present them as a receivable at a sum equivalent to the net interest in the lease In the event of Ijarah consummation with an exchange of possession, the lessor would show a benefit in its announcement of budgetary position, and perceive lease portions as income all through the lease term. At the point when the advantage is exchanged to the tenant, the lessor may perceive an increase or misfortune on transfer. (Source: Atmeh Abu-Serdaneh, 2012) Recommendations and Conclusion On the bsis of above disucsion, it can be recommended that, there are different ways, strategies, approaches and methods can be used in order to reconciling any variations in interpretation. For example, the analysis about the financial statements or records is one of the most significant methods that can be used in an effective and more significant manner. Along with this, it can also be concluded that, Ijarah Contracts are playing a major role in the development of the Islamic fincial systems (Godfrey Chalmers, 2007). In addition to this, all these are the financial instruments that are also playing a more significant role in the improving the overall growth of Islamic economy in an effecvitve and porper manner. At the same time, it can also be suggested that, the government organizations in the Islamic economic should conduct and provide specific guidleines, rules and regulations so that innovativenes and reliability of such financial instrument can be improved in and effective a nd more significant manner (Ayub, 2009). References Ahmad, A.U.F. (2009) Theory and Practice of Modern Islamic Finance: The Case Analysis from Australia. USA: Universal-Publishers. Atmeh, M. A., Abu-Serdaneh, J. A. R. (2012). A Proposed Model for Accounting Treatment of Ijarah. International Journal of Business and Management, 7(18), p. 49-56. Ayub, M. (2009) Understanding Islamic Finance. USA: John Wiley Sons. Eisenberg, D. (2012). Islamic Finance: Law and Practice. USA: Oxford University Press. Iqbal, Z. Mirakhor, A. (2011) An Introduction to Islamic Finance: Theory and Practice (2nd ed.). USA: John Wiley Sons. Saleem, M.Y. (2012). Islamic Commercial Law. USA: John Wiley Sons. Mourik, C. Walton, P. (2013). The Routledge Companion to Accounting, Reporting and Regulation. UK: Routledge. Monash studies in global movements series Godfrey, J.M. Chalmers, K. (2007). Globalisation of Accounting Standards. UK: Edward Elgar Publishing.

Reflective Essay Essays (1119 words) - Contemporary Christian Music

Reflective Essay My beeper goes off and I'm called to the school office. I'm told that I'm supposed to be taken to St. Louis in a helicopter as fast as humanly possible. This was the day that would change my life forever.... and I didn't even know it. I was the only child in the Jr. high that wore a beeper, some kids thought it was weird and some thought I was I lucky that I even got to wear a one. I didn't think I was so lucky, the reason I had happened to be wearing this pager was because my mother was dying. My mom had a rare disease that attacked her lungs, much like cigarettes deteriorate your lungs, but a hundred times worse. This disease was called Alpha-1 Antitripsin Diffisionsy. I had never known my mother to not be so sick. Ever since then we have to stop every few feet in the mall so my mom can even catch her breath. This pager going off meant that my mother could have a chance to live long enough to see me grow up a little. For the next three years my family went through hell and back aga in, and I'm about to tell you how that huge part of my life has made me who I am today. We arrived at St. louis Barnes Hospital early that afternoon. When we go there they rushed my mom in for prepping, we got to say a short goodbye not knowing if we would see her again. The surgery lasted eight hours, eight hours that we knew basically nothing. That whole eight hours lasted forever, and sleeping on waiting room couches didn't help much. After the long awaited eight hours, we heard that she was in Intensive care and that we could relax a little now. Knowing that we got a Morgan 2 hotel room and stayed the night. Life after that night went so fast from then on. In one single day I went form going to school with my friends to a helpless mom in a town I had never seen before, feeling all alone. The next day we got an apartment set up and school lined up so my sister and I wouldn't fall behind. My parents were all about keeping us in check with our education so we could grow up and make something of ourselves. Through out the next three years many great and horrible things happened. My mom came out of the surgery in good pretty good shape, for the next three months, the only way I could see my mom was if I scrubbed up and put on rubber gloves so as not to infect my mom in any way. During those three years I didn't get to see much of my parents, they were always gone. They were either at the hospital or either at the hospital. It went from drastic change of being momma's boy to raising yourself in the slums of St. louis by yourself in seventh grade. If you could think it, it went wrong in St. Louis. Some of the things you wouldn't even think off, for instance, There was a man shot in the head while driving his car just down the street from me. The sad thing is that his family was watching on , and I will never get that picture out of my mind no matter how long I live. Death seemed to surround us down there. Only being around transplant patients didn't help much either. I met a boy a little younger than me at the time whom was waiting for a heart and lung transplant. His name was Dave, one of the quietest most nice guys you could ever meet. He would give everything up just to make someone else happy. Well I knew dave for about a year and then he started to go down hill, slowly I noticed it was harder for him to go anywhere, he couldn't even stay past nine anymore. I woke up one day and went to school as normal, I knew dave was going in for check ups that day, but when I got home I found out that dave had passed away

Kate Chopin Essays (1909 words) - Frdric Chopin, The Awakening, Edna

Kate Chopin Kate Chopin Kate Chopin is one of the first female writers to address female issues, primarily sexuality. Chopin declares that women are capable of overt sexuality in which they explore and enjoy their sexuality. Chopin shows that her women are capable of loving more than one man at a time. They are not only attractive but sexually attracted (Ziff 148). Two of Chopin's stories that reflect this attitude of sexuality are The Awakening and one of her short stories ?The Storm?. Although critics now acclaim these two stories as great accomplishments, Chopin has been condemned during her life for writing such vulgar and risqu? pieces. In 1899 Chopin publishes The Awakening. She is censured for its ?positively unseemly? theme (Kimbel 91). Due to the negative reception of The Awakening Chopin never tries to publish ?The Storm?. She feels that the literary establishment can not accept her bold view of human sexuality (Kimbel 108). Chopin definitely proves to be an author way ahead of her time. The Awakening is considered to be Chopin's best work as well as a unlikely novel to be written during the 1890s in America. The Awakening is a story about a woman, Edna Pontelier, who is a conventional wife and mother. Edna experiences a spiritual awakening in the sense of independence that changes her life. Edna Pontellier begins her awakening at the Grand Isle when Harmon 2 she is 28 years old. She has been married for ten years, and she has two children. This situation proves to be different from the male characters of most other novels because they almost always do not have to face the complications of marriage and parenthood to reach self-determination (Bogarad 159). Chopin is able to portray this awakening through Edna's relationships with her husband, children, Alcee, and Robert. Kate Chopin always writes about marital instability in her fiction (Wilson 148). The first way in which Chopin is able to portray an awakening by Edna is through her relationship with her husband, Leonce. Chopin describes Leonce as a likable guy. He is a successful businessman, popular with his friends, and devotes himself to Edna and the children (Spangler 154). Although Edna's marriage to Leonce is ?purely and accident?, he ?pleases her? and his ?absolute devotion flattered her? (Chopin 506). However, it is clearly obvious to the reader the Leonce acts as the oppressor of Edna (Allen 72). When the reader first sees them together, Leonce is looking at his wife as ?a valuable piece of personal property which has suffered some damage? (Chopin 494). The most important aspect to Leonce is making money and showing off his wealth. He believes his wife's role to be caring for him and his children. Therefore, the first step toward her freedom is to be free of his rule. Edna is able to accomplish this first by denying Leonce the submissiveness which he is accustomed to. She does this by abandoning her Tuesday visitors, she makes no attempt to keep an organized household, and she comes and goes as she pleases (Chopin 536). The next big step in gaining her freedom from her husband is when she moves into a house of her own while Leonce is away taking of business. She does not even wait to see what his opinion of the Harmon 3 matter is (Chopin 558). It is quite evident the only thing Leonce worries about is what people are going to say. Therefore, he begins to remodel the house so it does not appear that Edna has left him. ?Mr. Pontellier had saved appearances!? (Chopin 565). Leonce never really understands what happens to his marriage with Edna. Instead he has to face the fact that he as well as the children are of no consequence to his wife (Spangler 154). There is also the fact that divorce is not a consideration because in the 1890s this right has not been generally recognized. The reader must understand that as a matter of historical fact her options are different from modern ones (Allen 72). Secondly, Edna must become free from her children. For many years Edna has been a good mother, but now she sees her boys as an opposition. Therefore, she refuses to live for them, but rather for herself (Seyersted 151). While at the Grand Isle Edna tells one of her good friends, Madame Ratignolle, that she ?would give my life for my children; but I would not give myself? (Chopin 529). Edna believes that she can direct her own life, but

What Freezing Point Depression Is and How It Works

What Freezing Point Depression Is and How It Works Freezing point depression occurs when the freezing point of a liquid is lowered or depressed by adding another compound to it. The solution has a lower freezing point than that of the pure solvent. Freezing Point Depression Examples For example, the freezing point of seawater is lower than that of pure water. The freezing point of water to which antifreeze has been added is lower than that of pure water. The freezing point of vodka is lower than that of pure water. Vodka and other high-proof alcoholic beverages typically dont freeze in a home freezer. Yet, the freezing point is higher than that of pure ethanol (-173.5Â °F or -114.1Â °C). Vodka may be considered a solution of ethanol (solute) in water (solvent). When considering freezing point depression, look at the freezing point of the solvent. Colligative Properties of Matter Freezing point depression is a colligative property of matter. Colligative properties depend on the number of particles present, not on the type of particles or their mass. So, for example, if both calcium chloride (CaCl2) and sodium chloride (NaCl) completely dissolve in water, the calcium chloride would lower the freezing point more than the sodium chloride because it would produce three particles (one calcium ion and two chloride ions), while the sodium chloride would only produce two particles (one sodium and one chloride ion). Freezing Point Depression Formula Freezing point depression can be calculated using the Clausius-Clapeyron equation and Raoults law. In a dilute ideal solution, the freezing point is: Freezing Pointtotal Freezing Pointsolvent - ΔTf where ΔTf molality * Kf * i Kf cryoscopic constant (1.86Â °C kg/mol for the freezing point of water) i Vant Hoff factor Freezing Point Depression in Everyday Life Freezing point depression has interesting and useful applications. When salt is put on an icy road, the salt mixes with a small amount of liquid water to prevent melting ice from re-freezing. If you mix salt and ice in a bowl or bag, the same process makes the ice colder, which means it can be used for making ice cream. Freezing point depression also explains why vodka doesnt freeze in a freezer.

English Essay Example | Topics and Well Written Essays - 500 words - 3

English - Essay Example And then there are occasions when expectations are heavily betrayed. My emotions are not a science. I would much rather place them loftily on the pedestal of art. They are free, function for their own wellbeing, and can hardly be stopped, even when I wish not to feel anything as I recently learned. I used to confidently categorize myself as a rational person and chose not to give into my petty emotions when I could avoid it. However, unfortunately, I experienced, this is not always the case. A recent, very strong emotional reaction I exhibited led me to re-evaluate myself and question whether I truly am as rational and immune to ‘silly’ emotions as I believed myself to be. A very close friend had been searching for a silver pendant with a Christian cross insignia. After failing to find one she felt exhibited her simplicity (most of them were too decorative for her), she gave up. Only a few days before her birthday, I managed to find a sleek yet simple silver cross and excitedly told her that I had bought it for her birthday. On our next phone call, she informed me she bought the exact same pendant that she happened to find at the mall for herself. On the phone, I said nothing. Made light of it, as if it were not a big deal, and as if it did not bother me that she chose to lower the significance of my gift by getting another one herself. I was to drop by her place for her birthday, and that is what I still intended to do. Emotional reactions can occur when an individual â€Å"chooses to react emotionally rather than react adaptively to a situation†. (Mascolo & Griffin, 149) And this is indeed what I chose. So on that celebrative day, I arrived at her place which was full of guests, most of them whom I knew. As I entered, I could feel a change come over me. I felt surly, annoyed, and vindictive. I behaved moodily with the

Strategic Management Resit Report Essay Example | Topics and Well Written Essays - 1000 words

Strategic Management Resit Report - Essay Example Since every organization wants to acquire competitive advantage therefore it was difficult to make strategies based on the external business environment due to homogeneity. However, resources such as reputation, credibility of employees, training and development methods etc. may vary from organization to organization and they are significantly hard to replicate (Gupta et. al., 2007). In the contemporary business environment resources based view of strategic management holds a remarkable position. Ever since it has emerged different critics have argued upon its importance in strategic management while some have defended its importance in attaining business superiority. Whatever the case may be one thing is obvious that resource based view in strategic management has actually strengthened the organization’s core values and integrity while improving the overall ethical conduct (Priem and Butler, 2001). This paper aims to investigate Resource Based View and its relevance with Stra tegic Management. Moreover its role in achieving competitive advantage particularly in an educational institution would be discussed with a case example. Discussion The theory of growth of a firm has actually laid down the foundation of resource based view in strategic management. An individual firm has a number of valuable internal resources which are mostly unique in terms of quality and quantity. For instance, the financial resources including all the monetary reserves, credits, accounts receivables etc., plant resources such as land and equipment, human resource which represents the nature of employees’ intellect, skills and credibility. Moreover the knowledge and expertise of an organization in industry and the overall management structure including planning and reporting are the important internal resources (Harrison, 2012). All of these are then combined with the strategic policies of an organization. The distinguishing nature of resources constitutes an organizationâ €™s core values which play a vital role in its overall success or failure. The accurate utilization of all these resources actually represents profitable long term strategic management which is a significant element of competitive advantage. The relevance of resource based view to strategic management can be substantiated on the basis of the fact that organizational strategies largely focus on increasing revenues while occupying unparalleled market share in the industry. On the other hand the sole purpose of resource based view is to achieve competitive advantage which makes it internally linked with the strategic management (Akio, 2005). Competitive Advantage Resource based view in strategic management plays a significant role in acquiring competitive advantage. For instance, if the Corporate Planning Department of a university requires maintaining distinctiveness in its management policies and customer services then it would need to implement resource based view in the followi ng pattern (Knott, 2009): Initially the organization would have to analyze its fundamental possessions including financial resources, plant resources and human resources. These are then divided on the basis of distinctiveness in the industry and overall participation in carrying out different business

BBUS 381 A1 Essay Example | Topics and Well Written Essays - 1750 words

BBUS 381 A1 - Essay Example Take an assumption that employees within a company have their own goals, and personalities. On this basis, employees cannot be perceived as part and parcel of the organization (Dressler, Reka and Cole, 2011). The principles of human resource management hold that the company should enact group and individual psychology for purposes of making these employees to strive in achieving the goals of the company. On this basis, human resource management aims at achieving the strategic goals of an organization by retaining, attracting and developing the talents of its employees. Dressler, Reka and Cole (2011) observe that human resource management acts as a link between the employees and the management of the organization. Human resource management helps an organization to develop strategies that will assess the various needs of its employees, and thereafter develop methods that will make these employees view their positions as part of their everyday responsibilities (Fudge, 2012). On this bas is, human resource management is a very important element in an organization because it creates loyalty amongst the employees of the organization improving their efficiency in their work place. ... For instance, the company has a human resource department, which is charged with the responsibility of identifying talented individuals to work within the company (Chang, 2012). The company has a human resource development center, which is tasked with the responsibility of training its employees on how to meet the objectives of the organization. The center is also responsible for developing the skills of the various employees that the company employs. This is for purposes of ensuring that these skills are effectively utilized within the company (Fudge, 2012). The human resource development center is also responsible for identifying the various needs of the company’s employees, and methods of satisfying those needs. This is because the aim of this process is to create loyalty amongst its employees; as a result there will be an increased efficiency in their roles. Chang (2012) observes that the company has a reward system, where employees are recognized for their performances, a nd rewarded by the organization. The rewards can either be monetary, or take the form of promotions within the organization. As a result of this policy, the employees of the organization are always working hard, with the hope of getting a promotion, or a reward. These human resource strategies by Samsung have made the company to be one of the leading electronic companies in the world. Part B: Samsung Group is a company from South Korea, with a global presence. The head quarter of the company is in Seoul, in a town referred to as Samsung. Samsung has an interest in the food processing sector, the electronics industry, insurance, and the retail industry. In 1987, the company operated under four business groups which are the Hansol