The Challenges Faced In Employee Motivation Commerce Essay

The Challenges Faced In Employee Motivation Commerce Essay One question that is frequently asked by managers in many organisations is How do I motivate my emloyees? The concept of motivation is complex with numerous researches carried out and various theories put forward in order to explain and attempt to understand it. Many definitions exist for motivation, but the common definition is that motivation is a pychological process within an individual that drives a certain behaviour to achieve set goals. Currently, motivation is a source of frequent debates and is an issue of great significance and concern for both employees and organisations. Whilst reliable information systems and the latest technology are important, in todays expanding service industry, employees remain the most precious assets in any organisation. How well employees perform and their commitment at work are crucial factors to the success of their organisation; and in todays modern work, where there is increasing competetion worldwide, organisations simply cannot afford to ha ve a demotivated workforce or even lose good employees to poor motivation. Therefore, motivation of such employees is an essential role of any manager, yet it is also amongst the most challenging tasks to perform effectively. Managers must clearly understand and be aware of the sort of factors that define motivation of their workforce because, by doing this, they are able to focus employees efforts to work efficiently and effectively to achieve desired goals of the business. Managers must also be aware of the fact that each employee is different and unique in their own sense, hence they need to take account of these variations when motivating them. According to the Self-Determination Theory (2), a useful way to understand the concept of motivation is to divide it into extrinsic and intrinsic motivation. Extrinsic motivation relates to motivation coming from others and the environment, where the individual behaves in a certain way in order to get something (e.g. pay) or because of external pressures (e.g. managers instruction). Intrinsic motivation, on the other hand, relates to motivation coming from within onself (3), where the individual acts in a certain way because of and actual interest in the act itself (e.g. satisfying need for competence). Frederick W. Taylor, the father of scientific management, had greatly influential views about motivation of workers. He believed that paying employees high wages, which is one of the sources of extrinisc motivation, was a sufficient incentive to motivate them to work harder and be more productive (find ref). This was possibly the case when organisations generally only sought complianc e from their employees, and extrinsic rewards provided by managers were an easy answer to problems with staff motivation and ensuring they did their work and followed the rules properly . However, in todays world and in the modern workplace, where employees are expected to self-manage and have more responsiblities, issues with motivation have become much more complicated and demanding. Motivating staff is indeed a difficult taks and is normally easier said than done. Currently, many organisations are motivating their employees by using extrinsic motivators such as financial incentives. However, this is not always sufficient to maintain the right level of motivation, as it only satisfies them indirectly. For this reason, employers need to also pay attention to intrinsic motivators, which serve to satisfy the direct needs of the employee, and consequently encourage better performance on a particular task. Monetary incentives and other extrinsic rewards are no longer sufficient to main tain staff motivation since employees are now required to show more commitment and creativity (1) . This, in turn, would depend on deeper sources of satisfaction that are more meaningful to the employee that extrinsic rewards would generally fail to offer on their own. In todays work setting, intrinsic rewards have a vital part in staff motivation; these include psychological rewards such as recognition and a sense of appreciation, which provide employees with a greater incentive for higher productivity and achievement. For most, if not all employees, financial security is a strong motivator and will remain as such for a long time, but managers must be aware that it stops to be the only motivator at some point, and even could stop to be a motivator all together depending on an individuals circumstances and variations. The different factors that can motivate the employee in the workplace can be expressed as needs which subsequently become motivators for greater productivity when they are fulfilled. Different things can motivate different people and be given different priorities. The manager must identify and then fulfill the needs for the employee, in order to form an environment in the workplace that encourages motivation. The various needs and expectations at work can be categorised into extrinsic and intrinsic motivation: EXTRINSIC MOTIVATORS INTRINSIC MOTIVATORS Salary Sense of challenge and achievement Job security Receiving appreciation Promotion Positive recognition Contract of service Good treatment Work environment Growth and advancement Social interaction Responsibility Health benefits Extrinsic motivation relates to actual rewards such as salary, security, promotion, contract of service and work environment; these are often outside the control of an individual manager; intrinsic motivation relates to psychological rewards such as the sense of challenge and achievement, receiving appreciation, positive recognition and good treatment at work; these can usually be determined by the actions and behaviour of the individual manager(4). These sources of satisfaction differ from an individual to an individual and between different circumstances. They are interlinked, and therefore, cannot be isolated from one another, but must be used as a combination of motivators in an organisation. MOTIVATIONAL THEORIES For many decades, theorists have been trying to understand what motivates an individual to behave in a certain manner in the workplace. However, this is a subject that has seen many conflicting debates as some researches believed that individuals do not lack motivation but certain incentives that motivate them are missing, while others argue that motivation originates from within the individual regardless of the environment and other external influences (9). Theorists have researched the subject of motivation by addressing two main concepts. First is the content of motivation itself, which concerns factors within the individual and the work environment that define and shape certain motivated behaviour. Second is the process of motivation, which concerns the perceptive process that an indivdual has for motivation in a specific setting. This has led to the development of numerous content and process thoeries about motivation in the workplace. CONTENT THEORIES In the 1940s Abraham Malsow, a psychologist, developed the concept of Hierarchy of Needs (10), which later became one of the most popular and influential theories of motivation. He proposed that there are five levels of needs that existed in a specific order, and that each level must be satisfied in turn in order to motivate the individual to satisfy the need at the next level. His argument was based on the fact that Individuals always had the desire for more, and for an individual to be motivated to pursue the next step, the needs at the previous level have to be fully satisfied. Therefore, certain lower-order needs needed to be fulfilled before other higher-order needs became motivators for the individual. According to Maslows model, these needs are physiological needs (basics for survival, e.g. food or water), safety needs (physical and emotinal safety), social needs (sense of love and social belonging), esteem needs (sense of recognition, respect and value) and self-actualisation (achieving ones full potential) (11). (rbs full) In the context of the workplace, there are potential ways that could satisfy an employees needs: Self-actualisation includes providing challenging tasks that would promote creativity and evolvement. Esteem needs includes recognition, praise, social status, self-respect, delegating responsibility and accomplishment Social needs involves social interaction, group work and pariticipation. Safety needs include job security, financial savings and living safe working environment. Physiological needs include providing adequate breaks during work and a salary that allows workers to afford life essentials (4). There are a number of identified problems in applying Maslows theory to the work place. In reality, other areas of life, beside work, can add to the individuals satisfaction, therefore the manager needs to also have knowledge of the employees life outside work. Also, the fact that individuals are different means that they place different values on the same need; and that some rewards at work can satisfy more than one need, and not necessarily satisfy one need at a time (4). Additionally, it was criticised for having a rigid order of needs which possibly would not apply to everyone, because priorities are likely to vary in different individuals and even for the same individual over time (11). In spite of all these problems, Maslows hierarchy of needs model has been widely utilised in many organisations as a guideline for managers to use to motivate their employees. It provides a valuable insight for managers about the general needs that individual employees have, and what can be used to motivate them (12). In 1972, Clayton Alderfer further developed Maslows Hierarchy of Needs model by grouping the different levels of needs in the hierarchy into three sets in his ERG (Existence, Relatedness and Growth) theory. He placed the lower-order needs, physiological and safety, into existence needs; social and esteem needs into the relatedness needs; and finally, the self-actualisation need into growth needs. In addition, Alderfer put forward a regression theory to accompany the ERG theory, which states that when higher-order needs are not met, the individual will work harder to satisfy the lower-order needs in order to increase their chances of fulfilling these higher needs (21). For instance, an employee who is having difficulties satisfying their sense of full potential would then probably put more effort into increasing their pay through promotion in order to maximize their chances of achieving what they want. (20) However, according to (11) a common problem with both Maslow and Alderfers models of motivation is that they contain having descriptions of needs that are too vague, particularly safety and esteem needs, which would essentially cause difficulties to managers in interpreting them and using them to provide certain opportunities for motivating their employees. In 1961, David McClelland created the Acquired Need Theory which is based on three motivational needs including achievement, affiliation and power. He stated that all of the three needs are normally present in an individual to a certain degree, but only one of them usually dominates. This is mix of motivational needs characterises a persons or managers style and behaviour, both in terms of being motivated, and in the management and motivation others. Another theorist, Elton Mayo, has made significant influences on the concepts of human relations and motivation, through conducting large studies of workers in an electrical company in the United States between 1924 1927. His findings emphasised the importance of teamwork, communication and positive recognition on staff motivation. His studies have also led to the creation of a model called The Hawthorne Effect which shows that the degree of interest shown by the manager has a positive influence on an employees job performance (5). However his model has been criticised for placing too much emphasis and reliance on social contacts within the organization on employees job performance (6). Nevertheless, the impact of Mayos research was huge, as it opened doors for further research into the subject of motivation by other theorists. Frederick Hertzberg (1959) developed a two factor theory based on findings from a study conducted in the U.S. through interviews with employees from different industries, in which they were asked about specific things that pleased or displeased them at their workplace. From this, Herzberg realised that there were two different sets of factors, where one set caused satisfaction and the other one caused dissatisfaction. One set of factors, called hygeine or maintenance factors are concerned with the work environment; they do not result in higher level of motivation, but there absence would result in demotivation. These include extrinsic motivators such as salary, security and work environment. The second set of factors are the motivator or growth factors which are concerned with content of the job itself; they result in increased motivation if present. These include intrinsic motivators such as positive recognition, challenge and a sense of achievement. His research also concluded that some factors overlapped both sets but had a stronger emphasis in one of them. (7) The size of the bars represent the degree of concern that each of the factors has on job motivation or dissatisfaction. The reason why the bars for achievement and pay look different is because they both offer short term satisfaction, as there is a continuous need to search for them to lead to satisfaction. This theory has been frequently criticised by many researchers for its limited application and possibly biased methodology. However, continue from pg 266 on book Furthermore, it has been noted the theory does not allow for individual differences, such as particular personality traits, which would affect individuals unique responses to motivating or hygiene factors.[4] The theories of motivation that were put forward more than half a century ago are still evident and widely utilised in todays banking industry. Based on Maslows Hierarchy of Needs model, banks are constantly attempting to sustain a good level of motivation amongst their staff by understanding and fulfilling employees needs. At the physiological and safety needs levels of the hierarchy, basic needs such as food, shelter, warmth and safety are all provided by working in any bank through paying salaries and having a safe environment to work in. In terms of social and esteem needs, banks meet these by creating opportunities for employees to interact with each other and work in teams; in addition to good recognition of achievements through praising the employee or giving a bonus pay, both of which are only a few methods out of many more used by banks to give the employee a sense of value and appreciation. In terms of self-actualisation, banks meet this need by offering promotion opportuni ties to the employees, and giving them the chance to progress in their careers. The motivators that banks offer also cover the hygeine and motivator factors that were put forward in Hertzbergs motivational model. Expectancy theory is a general theory of motivation that is based on the concept that individuals are influenced by the perceived results of their actions. It argues that there are a number of inter-linking factors which determine the strength of an individuals motivation, such as the efforts expended, the expectation that rewards will be available, and that these rewards will be linked to their performance. In other words, the individuals level of motivation will depend on their perceived expectation that it will lead to the desired outcome. This theory has been approached by several different writers, namely Vroom, Porter and Lawler (HRM book). Vrooms expectancy theory is based on three factors: Valence the perceived gratification from a result. Instrumentality the degree to which a first level (performance-related) outcome, e.g. high productivity, leads to a second level (need-related) outcome, e.g. promotion. Expectancy the connection between a selected course of action and its expected outcome. The combination of valence and expectancy defines the level of an individuals motivation. Vrooms theory has been further modified by Porter and Lawler, to develop which takes account other factors besides motivation that could influence performance. These factors include individual skills, characteristics and role perceptions. These theories help managers to understand the nature of human behaviour and the complexity of motivation in the work setting; in addition to helping them recognise any problems with individual performance. They emphasise that managers should pay particular attention to factors such as an employees effort and performance, and use rewards whenever it is appropriate in order to maintain a good level of motivation amongst the employees; additionally, managers are advised to create methods of evaluating employees performance as a way to ensure that their workforce are constantly motivated. The Royal Bank of Scotland (RBS) offers its employees a package called Total Reward (rbs full). Besides salary, this includes flexible working hours, health and medical benefits, lifestyle benefits such as shopping vouchers, and certain financial products at special rates. It also offers monetary incentives such as bonus payments based on profit-sharing and individual-performance schemes; in addition to non-monetary incentives through recognition of good performance based on personal development plans, where the employee is given the opportunity for promotion. RBS gives the employees the chance to work flexibly through a variety of working practices including job sharing, compressed hours and home-working. In 2004, RBS won an award for its flexible working-hours program in the workplace (find ref). This enabled employees to achieve a work-life balance by choosing working hours that fit around their personal lives, which would have a positive influence on the employees commitment at t he workplace, and in turn results in better overall performance. This was highlighted in Elton Mayos studies on staff motivation in the 1920s that showed that staff tended to be more motivated and productive if they were feeling comfortable and satisfied with their work environment. In 1963, John Adams developed the Equity theory which is concerned with the employees perception of fairness in the workplace, in terms of treatment received compared to co-workers on the basis of inputs and outcomes. He argued that fair treatment is highly valued by individuals, and the feeling of inequity may have a negative influence on their performance. There are a number of factors in the workplace that play an important role towards the feeling of equity including pay, promotion and recognition. Employees would expect equal treatment based on their contributions and performance compared to other co-workers. This would subsequently result in a sense of satisfaction and would strengthen their relationship with the organisation and the team of employees, all of which is important for their motivation. Edwin Locke put forward a Goal theory of motivation in the 1960s, which is based on the idea that individuals goals have a significant influence on their performance. He argued that individuals who have specific and challenging goals set for them, to which they are committed to, would generally perform better, as they provide focus and motivation for the employee on the task given. The performance of the employee is further enhanced if this is coupled with clear and constructive feedback of the results, which provides greater focus and gives the employee a greater sense of satisfaction and motivation for the tasks set. In the 1960s Douglas McGregors developed Theory X and Theory Y, which are theories that define two different approaches towards motivation in the workplace. Theory X implies an authoritarian management style, where the employee is often regarded as relatively unambitious, lacks responsibility, tends to avoid work and change, and is often in need for some kind of direction at work in order to perform and progress. So in order to achieve the organisations goals, managers would adopt a stringent attitude towards the employee, in which they would often rely on threatening techniques of punishment to force the employee to comply with the organisations goals. Based on Maslows Hierarchy of Needs model, McGregor argued that most employees in this environment would only seek to satisfy their lower needs, such as money; however, since they are already satisfied they will not be a sufficient motivating tool for any longer. Therefore, this kind of management style would most definitely produce p oor results in terms of staff motivation, and ultimately meeting the organisations objectives. For this reason, McGregor put forward a Theory Y, which assumes a participative management style, where the employee is considered to be self-motivated, responsible, ambitious, and that they genuinely enjoy working. According to this theory, managers believe that employees are self-directed and motivated to perform well at work. This creates a work environment where managers are able to exercise delegation, collaboration and responsibility in decision making amongst their workforce. In this Theory Y environment, most employees are encouraged and driven to satisfy higher level of needs such as esteem and self-actualisation, which are not fully satisfied and would therefore keep them motivated for higher performance and productivity at the workplace. (8) McGregors model has been criticised for being too rigid and quite unrealistic in the way it depicts management and employees as being one of either two extremes in the workplace. Nevertheless, his theories continue to provide a guide to managers about the fundamentals of management styles, and the importance of maintaining a positive attitude to staff motivation, where employees feel that they are well-treated and valued as part of the of the organisation.

hindhuism and buddhism :: essays research papers

Similarities 1. Both emphasize the illusory nature of the world and the role of karma in keeping men bound to this world and the cycle of births and deaths. 2. Both believe in the transmigration of souls and the cycle of births and deaths for each soul. 3. Both emphasize compassion and non violence towards all living beings. 4. Both believe in the existence of several hells and heavens or higher and lower worlds. 5. Both believe in the existence of gods or deities on different planes. 6. Both believe in certain spiritual practices like meditation, concentration, cultivation of certain bhavas or states of mind. 7. Both believe in detachment, renunciation of worldly life as a precondition to enter to spiritual life. Both consider desire as the chief cause of suffering. 8. The Advaita philosophy of Hinduism is closer to Buddhism in many respects. 9. Buddhism and Hinduism have their own versions of Tantra. 10. Both originated and evolved on the Indian soil. The founder of Buddhism was a Hindu who became the Buddha. Buddhism is the greatest gift of India to mankind. Differences 1. Hinduism is not founded by any particular prophet. Buddhism was founded by the Buddha. 2. Hinduism believes in the efficacy and supremacy of the Vedas. The Buddhist do no believe in the Vedas. 3. Buddhism does not believe in the existence of souls as well in the first cause, whom we generally call God. Hinduism believe in the existence of Atman , that is the individual soul and Brahman, the Supreme Creator. 4. Hinduism accepts the Buddha as an incarnation of Mahavishnu, one of the gods of Hindu trinity. The Buddhist do not accept this. 5. The original Buddhism as taught by the Buddha is known as Theravada Buddhism or Hinayana Buddhism. Followers of this do not worship images of the Buddha nor believe in the Bodhisattvas. The Mahayana sect considers the Buddha as the Supreme Soul or the Highest Being, akin to the Brahman of Hinduism and worship him in the form of images and icons. 6. The Buddhists consider the world to be full of sorrow and regard ending the sorrow as the chief aim of human life. The Hindus consider that there are four chief aims (arthas) in life which every being should pursue.

Observational research Essay

Observational research, also known as field research, pertains to a research approach that engages in the direct recording of a phenomenon as it occurs in its natural condition (Zechmeister et al. , 2003). This research approach is distinct from the other research methods because it employs a quasi-artificial scenario that is comprised of a number of factors, of which some could be controlled. The capacity to control at least one of the factors in the environment allows the researcher to perform the scientific method that would answer the developed hypothesis. Observational research could be performed using any of the three classified types of observational techniques. The covert type of observational research involves unidentified researchers that directly interact with the study participants and remain undetected until the completion of the investigation. In other cases, the researchers are positioned at a distance from the study participants, yet are still capable of direct observation of the actions and interactions that each of the study participants engages in. One advantage of this type of observational research approach is that the study participants are not required to cooperate with the researcher. The anonymity of the researcher in the scenario provides study participants to freely express themselves and to liberally make decisions without being influenced by the researcher. Unfortunately, it is also possible that certain ethical violations could be related to this type of observational approach, mainly as a form of deception that is associated with the researchers’ anonymity. The overt type of observational research allows the researchers to identify themselves to the study participants. In addition, the researchers are also required to fully disclose the purpose of their investigation to the study participants. One disadvantage that is strongly associated with the overt type of observational research is the impact of the disclosure on the behavior of the study participants during the entire experimental period. It is actually natural for an individual to be watchful of their actions when they are aware that at least one individual is observing their behavior. As such, the study participant exerts effort in projecting the ideal personality that is acceptable to the eyes of the beholder and definitely not reflective of the actual personality of the study participant. However, it should be understood that in this type of observational research approach, there would be no ethical issues related to deception of the study participants because the identity and the goals of the investigator have been disclosed early on. Researcher participation is another observational type of research approach that engages the investigator in the scenario that is being studied. One advantage of this type of observational technique is that the investigator is allowed to directly interact and to directly appreciate an incident that is being studied. Aside from taking notes of the effects and reactions of the study participants, the researcher also interacts with the rest of the scenario and regards himself as another study participant in the investigation. One disadvantage of this observational type is that the investigator may lose track of the goals of his research study because he becomes extremely engrossed in the activities occurring in the study scenario. In the observational study described in this unit, the covert approach was employed, wherein the investigator directly interacted with 50 study participants with their knowledge of his role and his goals in the interaction. In addition, the study participants are unaware that they are being observed in terms of their attitudes and responses to a specific stimulus or setting. The investigator thus chooses to project a smiling stance as he talks to 50 individuals and he takes note of the response of each of the study participants during his exchange with them. The investigator then rates the response of each of the study participants as very friendly, friendly or neutral.

Mistissini History and Culture

Mistissini History and Culture The Crees of Mistissini have resided in the Mistassini Lake area since time immemorial. In the early 1800's, the community of Mistissini's actual location was just a summer encampment due to the establishment of the Hudson Bay Company fur trading post on sight. The North West Company and other fur traders were also in the vicinity and can be considered contenders in the fur trade with the Hudson Bay Company in those days.Apart from Mistissini Crees there were neighbouring Cree hunting groups such as the Nitchigoun, Neoweskaau, and even some Nemaska people whom eventually came together to make up the Mistissini population in the 1930's. The government assistance began in the early 1940's providing food rations and eventually clothing allowance. It wasn't until the early 1960's that the government assistance was fully in place for the Mistissini Crees.The James Bay Agreement was signed on November 11, 1975 giving the Crees of the region opportunity of further development in their respe ctive communities.The Hudson's Bay Company building in Montreal.Progressing over the years in many ways the community of Mistissini has developed to what it is today.Some important dates in the history of Mistissini7200 - 6700 years ago - Deglaciation of the Mistissini area.6000 - 4500 years ago - The initial First Nation occupation of the Mistissini area probably occured during this period. The Mistissini area has probably been occupied continuously from at least 4500 to the present. Some Mistissine Innu dispute these dates, suggesting that their ancestors have always lived here.4500-4000 years ago - Colline Blanche, located on the Temiscamie River, began to be used as a source of stone for the manufacture of stone tools. Archeologists found this high quality stone in sites located in many parts of Quebec and into northern New England.early 1600s AD - Having long...

once were warriors essays

once were warriors essays In the movie, Once Were Warriors by Alan Duff, he explains how a family is ruined mainly because of alcohol. Once Were Warriors is a movie that is all about the truth in cultures. As we all know, alcohol usually causes negative behavior. For example, in the movie it shows how alcohol causes violence, poverty, and child abuse in a family. Alcoholism is something common in mostly every culture. Usually alcoholics do not want to realize that alcohol is the problem of many things. To alcoholics, alcohol is a substance that does not do any harm and does not hurt anyone. As shown in the video, the children and wife are victims in certain ways of the alcoholic husband/father. Therefore, we can say that every person in society is a victim of alcohol no matter if they drink or dont drink. Violence was one of the main components in the movie. It shows how the family had to live with violence instead of love. Also, it shows how the wife has to put up with the beatings, Jake the husband would give her. This is usually seen in every culture where the man drinks until he is drunk. After certain man is drunk he takes the power to beat the wife and feel that he is the boss of the relationship. I have been a witness of this situation, where the woman is always being violently beaten by the spouse. This is something that occurs everyday and everywhere. I believe that the woman can put a stop to this situation by giving herself the position she deserves. Usually the woman puts up with the violence because supposedly she loves the spouse. She may love the spouse, but she does not love herself and in order to achieve she needs to love herself and put atop to everything that causes her harm. As we all have seen, the woman always considers herself a victim of a violent relationship. Being a woman, there is not only one victim in the relationship. Every person that is involved in a drunken society ...

Select 2 examples of architecture that best reflect the architectural Essay

Select 2 examples of architecture that best reflect the architectural styles. It is preferable that you choose one western ans one non western example - Essay Example The project has been carried out in a total built up area of more than 330,000 square meters (Doha City, 2013). The facility encompasses a number of goals that include world-class leisure destination, exciting retail and entertainment experience, and international standard services. The mall provides a wide range of services to visitors ranging from basic shopping grounds to high-class entertainment joints. The shopping mall appreciates the need for spatial flexibility incorporating a number of features to allow its maximum usage. This has called for the development of a clear-span space border structures that mainly encompass the entertainment and cinema areas. The fllor structure is as shown below. The mall has been constructed in such a way to allow easy direction strategies. The built-up area involves five levels of facilities that may be accessed from the car park spaces on the basement and roof-top floors. Adequate space has also been allowed for shoppers to access the different businesses within the complex. The retail mall offers a wide range of services from its structural and enhanced stores. This has required a wide range of architectural structures to allow accessibility as well as lighting standards. The construction design serves to satisfy the urban morphology. The design superimposes a defined orthogonal street framework that takes an informal lattice (Doha City, 2013). This accommodates today’s vehicular movement, allowing well-structured walkways that provide intricate spaces that are in line with both Muslim and Islamic vernacular (Doha City, 2013). In addition, the design incorporates an integrated transport and microclimatic strategy. The strategic design enables the mall to capture the sea breeze while reducing ambient temperatures through shading the neighboring streets. The shopping mall occupies a floor of 145,000 square meters and acts as one of the largest shopping malls in Phillipines and within the

The Performance of the U.S. Economy Today Essay

The Performance of the U.S. Economy Today - Essay Example The main reason for the slow economic growth of the economy is lack of responsibility and initiatives taken by the government in reducing the expenditure. While considering the GDP rate of the country it is experienced that the overall economy should be rated as B grade. The rate of GDP decreased during the first quarter, it decreased to 0.2 and then it recovered in the second and the third quarter. The decrease in the oil prices facilitated the people to spend more which mainly accounts for two third of the gross domestic product. The government took initiatives in raising the GDP of the economy by reducing the total government spending which includes local, state and federal expenditure. The spending decreased from 39% to 35%.The decline in government spending led to the increase in GDP. The main reason behind grading the economy as B is that the economy is not performing effectively and efficiently, the corporations and the owners of the company or the businessman have become greedy, cautious and myopic. The investors instead of holding the cash for future they are engaged in hoarding the cash and utilizing the cash for short term profitability (Collins, 2015). The export and import function of the economy did not prosper. After the recovery of the financial crisis it is observed that the changes in case of both export and import are comparatively less. This resulted in the increase of trade deficit. The FED justified and explained that the labor and the market condition of the economy are improving as compared to the previous years. Although the number of investors increased during the period of recession but the amount of investment by the investors are decreasing with the due course of time. Therefore the level of investment failed to contribute towards the growth of the economy. The consumer spending is mainly measured in