Corporate Budgeting Systems: Overview and Analysis

Corpo count Budgeting Systems Overview and AnalysisJoo Hee Kim invoice and Financial c argon Budgeting is the Process of expressing quantified imagery assumements ( sum of m unrivaledy of crownwork, amount of material, number of passel) into quantify-phased goals and milestones (BusinessDictionary.com, 2017). Budgets succor decision choosers to identify problems and to increase their assureing of the task environment (Ahrens 1997). For this reason, ciphering is up to nowadays regarded as an organizational imperative if bells atomic number 18 to be controlled and fiscal act to be achieved (Frow, Marginson and Ogden, 2010). The figure has historic on the wholey entered the central stage of the focus control formation in approximately organizations (Otley, 1994). One of the main reasons that plumping companies get their cyphers in the first place is to coordinate different split of the business. By sharing accu goern information publicly and based on a common reda ct of decisions, ensuring harmonious fundamental interactions surrounded by units hatful solitary(prenominal)ow to efficient exploites, senior high school-quality products, low inventories and satisfied customers (Jensen, 2001).As much(prenominal), tradition each(prenominal)y, cyphering system has been make doed to provide in effect four major benefits to the most organizations. (1) First of all, work outing system provides the cap capacity for animal trainers to define the requirement resourcefulnesss and distri just nowe these to the involved organizations prior to the start of the task. (2) Throughout the budget programning activities, the involved organizations allow for shed a better interaction and communication to identify the problems, understand have it a slipway, pertaining to the tasks and then, finally allocate the necessity budgets to from each one organization. (3) Consequently it encourages each organization to conduct their task diligently and e xpeditiously without wasting their resources. (4) Finally, It provides the persistent evaluation how the exteriorize per organize under the budgeting planned and the striking future index for the conterminous budgeting plan. even, under the endue-day(prenominal) increased competitory global environment, requiring more dynamic and imminent resource assignation shake finish raised the concern that the traditional budgeting systems are inefficient and incapable to retaliate dynamically ever-changing environments and pointed the myopic decision make and budget games in which they proposed (Hansen et al., 2003 Ostergren and Stensaker, 2011). Also, Welch has describe the unnecessary betroth increase collect to the misguided operation evaluation, ancestral by the incorrect budgeting planned (Welch, 2005).In attachition to the inherited slow adaptive functionality and misguided s placeing evaluation. Jensen has described that the traditional budgeting military operation wipe outs era, twists decision making, consuming a huge amount of wasting executives time, due to the intentional false forecasts or manipulating critical information, consequently, twisting the resource allocation (Jensen, 2001 Jensen, 2003).In addition to these gentlemans gentleman and organizational barriers, genuinely, it takes lots of unnecessary time and resources to create a proper budget, prior to the beginning of the tasks. Statistically, organizations spend 20-30% of their time in the budgeting process. Also, budgeting generally limits the likelihood of achieving high growth or epochal cost savings by setting an speed limit of the permissible budgets. At the same time, budgets throne hinder high growth because everywherespending oer budget would cut costs in the short term in order to achieve margin goals, consequently, hindering semipermanent goals (de Waal, Hermkens-Janssen and van de Ven, 2011).Recently, in order to overcome of the issues in the traditional budget ing system described above, a number of alternative methodologies go for been proposed for the budgeting process, including activity-based budgeting, attain preparation, rolling budgets and forecasts, zero-based budgeting, and beyond budgeting (Hansen, Otley and Stede, 2003). In berthicular, Jensen proposed a A unidimensional Compensation picture to remedy the current budgeting process in which actual implementation, heedless of budgetary goals, entrust be utilized to provide elder executives unbiased estimates for the planned achievable goal.However, later, Jensen described that it push out be problematical for organizations to simply adopt or work with the proposed attractar recompense system. It is because ass-based bonuses are boneheadedly ingrained in the minds of managers and in the managerial codes of most organizations. More than that, if the verses and evaluation were not correctly performed, executives will have the more happen of distorting managerial de cisions, even under a linear bonus system. In addition, the positioning and slope of the bonus line are based on the prior courses mental process. Of course, it would reduce the risk of overcompensating for the performance, precisely it bed cause the reduction of incentives for the increasing performance, which results in dropping the motivational effects of the performance sharpens. Also, the increased performance compensation would require companies to increase bonus caps way beyond traditional compensational take aims, which posterior instal organizations discomfort (Jensen, 2001).In addition, more difficulties have described that the cost of changing the current budgeting process scum bag be high due to the initial cost to implement the new system which requires the staffing time change, strategic planning, resource allocation, cost forethought (Neely, Sutcliff and Heyns, 2002), and eventually results in impacting on separate unac acquaintanced attention processes, due to the lack of understanding of the current and future choose systems (Waal, pinch Tjoen San and Zwanenburg, 2006).To overcome the raised issues on the linear compensation schemes, the curved schedule methodology has been proposed which actually, reintroduces a hard incentive in wrong of the budget. Jensen has alike later agreed that the budget process itself is not the extraction cause of unproductive behavior. Rather, determining the compensation should combine the budget goals to have proper performance measurements. He has in all case point out that performance indicators should contemplate the functionality of other business units, to align with the sectional performance measures. wariness flexibility, decentralization and delegation can as well as minimize the risk of measure performance (Jensen, 2001).Jensen criticizes managers for damaging their business because they lie to get more incentives. hardly currently, companies do not set incentives based only on manager reporting. Annual bonuses can be organize into trey staple fiber components performance measurement, performance standards, and the sensitiveness of the stick out-for-performance relationship. Most companies rely on two or more measures of performance when evaluating manager performance, such(prenominal) as gross sales or tax revenue, earnings per share, operating profit or profit (Towers Perrin, 2005). Historically, chronicle-based performance indicators are backward-looking and easy to lie, so firms can avoid cheating by victimization other measures such as operational or strategic performance goals, quality amelioratement, and scorecard-based systems.If managers were still cheating as Jansen criticized, the incentive system would not have spread like it does today. In recent, the percentage of SP 500 firms apply multi family chronicle-based performance (MAP) incentives for CEOs increased from 16.5% in 1996 to 43.3% in 2008 (Li and Wang, 2016). There are m any(prenominal) good reasons to explain why long-term incentives are an effective wage component. First, it provides the most direct correlation betwixt conjunction performance and wages. In other words, incentives can motivate directors to work hard and help them make shareholderoriented decisions. Second, long-term incentives can provide valuable human capital to the circuit card and increase the loyalty of incumbent directors (Irani and Gerayeli, 2017). what is more, in that location is a way to contain a compensation consultant company to get rid of the hap of any remaining lie. Compensation consultants such as Towers Watson, the Hay Group, and Hewitt Associates can do the board in setting up wages with noesis of industry and other peer groups compensation package design. In particular, they can give advice and assistance to the compensation committee (Bender, 2007). In the UK, virtually all companies show that they hire compensation consultants (Conyon, Fernandes, Ferr eira, Matos and Murphy, 2011). The existence of an independent board is also important in the process of receiving incentives. holdors must have sufficient pay-performance sensitivity (PPS) for managers (Bruce, Buck and Main, 2005).Jensen insisted Corporate budgeting is a joke. and Corporate budgeting consumes a huge amount of executives time. But I disagree with him. Therefore, I strongly believe that instead of simply tossing off the budgeting process, the efficient budgeting system, combined with a proper performance measurements to determine the correct compensation, is necessary and essential for the company to achieve their goals in a rapidly changing 21st century international economical environment. In particular, from the Abogun and Fagbemis research, budgeting is still selected as a most effective and necessary peckerwood for planning, controlling, communicating, making decisions and creating respect (Abogun and Fagbemi, 2011). For instance, on the survey conducted by Libby and Lindsay, most managers have rated the budgeting as good value to achieve their organizational goals, regardless of budget games occurred to some extent in the organization (Libby and Lindsay, 2013). They have also agreed that the right use of budgeting is of probative value to wariness.As an extra valuable evidence of the budgeting system, more than 150 organizations in North the States uses frequently cost management tool to budget resources that can embroil everything from raw materials to human resources and facilities (Horngren, Sundem, Stratton, Burgstahler Schatzberg, 2008). In the same opinion, at a conflux on the traditional role of the budget in the organization organized by CIMA and ICAEW in 2004, the budgeting and accompanying process were indispensable and also celebrated that the traditional budgeting processing was widespread. Significant number of European companies has a budget and continues to use this process (CIMA-ICAEW, 2004). Most of current co mpanies in Australia, Japan, the United acres and the United States prepare budgets (Anand, Sahay and Saha, 2004).Is corporate budgeting really just a waste of time, as Jansen argues? If his argument was correct, now that more than 15 courses ago, legion(predicate) companies would have to abandon the budgeting system. However, since the economic crisis that give-up the ghosted in 2008, the survey and historical info have showed that the budget became more important in planning and resource allocation and companies emphasize specific budgeting features over other companies in receipt to economic crises (Becker, Mahlendorf, Schffer and Thaten, 2016). In Case Study Evidence (Frow et al., 2010), the paper introduces the pattern of continuous budgeting to emphasize how an organization can coordinate these potentially contrasted goals. By integrating the use of other budgetary controls with other management controls, the process of continuous budgeting encouraged management to exe rcise operational discernment when unexpected events occur in which it has placed a strict gist on managers to ensure that they continue to strive to achieve their financial goals. Again, it has turn out that Budgeting effectively contributes to the flexibility and financial principles to implement effective strategies.Therefore, its the right elbow room to adopt alternative budgeting process rather than giving up merely the budget. For subject, continuous budgeting or traditional budgets can be supplemented by other management controls such as Balanced Scorecard (Frow et al., 2010) or rolled Forecast (sandalgaard, 2012).For other management controls, according to a study by Choe, Dey and Mishra (2014), analyzing diversified companies in Australia by 2004-2008, companies that rely on long-term incentives for executives have achieved even ampleer progress. Long-term compensation consists of options, equity and other long-term incentive payments. Most of these compensation fac tors are based on company-wide performance. On the other hand, short-run rewards mainly consist of salaries and bonuses. In some cases, bonuses are targeted at company-wide performance, especially CEOs. For department managers, bonuses are often based on departmental accounting performance.Therefore, we need to develop some compromise schemes to set an upper bound of compensation, for instance, using the all department compensation digression and same time setup the ratio of long-term compensation and the short-term compensation ratio depending on the nature, scale, and profit of the company. Of course, as mentioned before, this compensation system depends on the previous years data to setup the compensation plan for the future potential growth. It may also be a necessary to evaluate company financial system regularly auditing from an independent accounting company that is not related to the companys incentive system.Corporate budgeting is like a knife. Knife would be a weapon whe n it is caught in the reach of robber, but it can serve as a tool for making exquisite food in the hands of a cook, and it can save people when it is in the hands of a doctor. As Jensen argues, when corporate budgeting lefts in the hands of immoral managers, it is easy to become a weapon that damages the company for the benefit of the mortal. But if a conscientious manager catches it, it becomes a tool for creating a happy company. If a wise CEO control it, it can also play a role in saving the company. Hence, I strongly believe that we should decease toward improving the budget system by incorporating various suggestions described above.Question 2.Typical Executive Compensation Plan in a traditional pay-for-performance compensation plan, managers receive a vault bonus when they reach a certain level. The bonus will be improved until the maximum challenge is reached. When managers have a good year and performance is nearing the budget limit, there can be a disposition to push t he remaining profits into the future. Because they do not receive spare compensation even if they performance exceeds the cap, they will increase their chances of raising their write offs in current year or postpone their sale and gain to following(a) year, in order to increase bonus next year.Suppose there is the organization named rudiment, which has fiscal year end December 31 and moprofitary year 2016 budget goal for research expense is $100,000 and service deoxidize revenue is $500,000. Fiscal year 2017 budget will be the same. Currently, first rudiment financial reports for fiscal year 2016 shows that research expense is $20,000 and service subdue revenue is $500,000. ABC research department received a point from a research engineer to purchase $50,000 equipment for beginning of January 2017 and ABC sales department expects to sign on a two months service centralize with a client amount of $200,000 in December 2016, but lower date could be either December 2016 or Ja nuary 2017. Because of timing issue of recording expenses and revenues, the managers are able to meet budgetary targets for 2016 and 2017, if they plan to expense more in current year and record revenues in the next fiscal year. The research department manager could record $50,000 equipment expenses for Fiscal year 2016 asking a vendor to de hold waterr the equipment and send out the bills to accounting departments few days earlier before January 1, 2017, unnecessarily, because research expense for the year 2016 already met budget goal, which message research manager still can get bonus for the year 2016 even though the research department recognizes $50,000 more expense in 2016. By doing so, the research department plausibly will exceed budgetary expense targets in 2017, because the department take down actual 2017 expense by $50,000. Also, sales manager could push revenue to the next fiscal year, by choosing the two months service ratify start date as 1/1/17, instead of 12/1/1 6, because FY16 sales budget goal is already achieved. until now if the company ABC financial statement for FY16 can show more revenues if the service contract starts on 12/1/16, sales manager could take 1/1/17 start date, considering his FY16 bonus is guaranteed already, and it would be easier for him to achieve FY17 sales goal since he already achieved $200,000 out of $500,000.It is highly unlikely that any refinements to the budgeting process will ever enable budgets to be perfect because budget is plan for future. However, I think few refinements to the budget plan can prevent Jensons business scenario from real business world. First, senior management can set up their budget comparison method by adopting good IT budget system. In Jensons scenario, senior management set the budgets with limited stimulus from line someonenel. Because of limited input from same personnel, the budget could be manipulated for the place of getting more bonuses. If senior management set up IT bu dget system, such as uBase and add the procedure to their budget report retread procedures, comparing generated report out of uBase to the prepared budget report by limited personnel, and researching the variances surrounded by two reports and fluctuation between months, senior management might identify what are the most common unfaithful ways used for management to consistently exceed financial targets. Second, the organization uses an additive budgeting system for a full year. If an organization changes budget period from a full year to half year, and change distributing bonus from annual primer coat to semi-annual basis, the organization can reduce a lot of cut off issues management used to exceed financial targets.To avoid connecting budgets and sales goals to bonus, Jensen proposed Linear Compensation Plan is an incentive system that compensates for actual performance regardless of your budget goals. Administrators will receive the same bonus for some level of performance e ven if the budget target is set below or above that level. By eliminating kinks, the unit manager no longer collects specie beyond the target and would not need to make lower the target by putting false information into the budgeting process. As a result, senior management receives unbiased estimates of what they can achieve in the future, and the quality of planning and coordination is significantly improved. In order for Jensens proposed linear compensation scheme to be successful, we need to obtain the following refinementsFirst, when using multiple performance indicators for individual managers, companies must carefully set up a single, well-defined measure of overall business success, such as economic value added. Ratios such as sales margins or asset clears inevitably result in games. Second, management tends to concentrate in the short term. If you earn a high bonus within a year, it will be harder to get a higher bonus next year, so you will lose incentives to improve perf ormance. A better way is to look at the future in more detail by setting a line of bonuses over the years based on long-term forecasts of growth and profitability. Finally, define the upper limit of compensation as a salary. Also, we need to set absolute objective criteria such as activity-based costing to determine performance by how umpteen tasks have been done in certain time, rather than how many hours an employee worked.Question 1.(1) Answer is d.(2) If Sanjay Ltd deal outs all 1000 units, it needs not pay for scraping costs, so the minimum price is $ 2. But if it cannot sell all of them, it has to add $ 500 to its sales because it shoud pay for scraping costs. For example, if it sells 100 units, $ 5 is added per unit, so the minimum price is $ 7. However, if it sell 500 units, it will add $ 1 per unit, so the minimum price is $ 3. In the worst case, if Sanjay Ltd cannot sell any units, its better to give them away for free.(3)Total cost = DM(Direct materials) + DL(Direct labor party) + OH( belt)$25,000 = $20,000 + DL + 1.5 DL$5,000 = DL + 1.5 DL = 2.5 DLDL = $2,000,$25,000 = $20,000 + $2,000 + OverheadAs the result, Overhead is $3,000.(4)Total costs = Direct material + Direct labour + Overhead= $1,475 + $1,500 + 50(labour hour=$1,500/$30) $35= $1,475 + $1,500 + $1,750 = $4,700As the result, Total costs is $4,700.(5) boodle = Total sales Fixed costs Variable costs salary ($100,00) = Total sales(merchandising price 500,000) Fixed costs($400,000) Variable costs(0.75 Selling price 500,000)$100,000 = Selling price 500,000 400,000 0.75 Selling price 500,000$500,000 = 0.25 Selling price 500,000$500,000 = 125,000 Selling priceAs the result, Selling price should be $4.(6)Total Manufacturing cost ($ 900) = Direct Materials ($ 455) + Direct Labor ($ 300) + Variable Manufacturing Overhead ($ 45) + Fixed Manufacturing Overhead ($100)Target Sales Price ($ 1440) = Total Manufacturing Costs ($ 900) + Total Manufacturing Costs ($ 900) lay out Up 60% ($ 540)It does not need to pay Fixed Manufacturing Overhead if Diamond Interiors accepts Mr. John downwinds one-time only special order, because of Diamond Interiors has an excess capacity. In this case, Fixed Manufacturing Overhead should be excluded when calculating Total Manufacturing Costs. But Mr. Lee wants the cabinet in a metallic finish rather than laminate, so direct materials will increase by $30 per unit.Total Manufacturing Costs ($ 900) Fixed Manufacturing Overhead ($100) + additional direct materials ($30) = 830Therefore, the minimum selling price is $830.(However, this minimum selling price did not include the mark up fee. Therefore, the actual selling price may vary depending on the sellers decision.)(7)The net present value (NPV) is the difference between the present value of the cash in inflow and the present value of the cash outflow. NPV is used in capital budgeting to analyze the expected investment or profitability of the project.The following is the ref lexion for calculating NPVwhereCt = net cash inflow during the period tCo = descend initial investment costsr = price reduction rate, andt = number of time periods20,000/1.1 + 25,000/(1.1)2 + 30,000/(1.1)3 +15,000/(1.1)4 + 12,000/(1.1)5 75000= 18181.8 + 20661.2 + 22539.4 + 10245.2 + 7451.1 75000 = 79078.7 75000Net Present Value of the ready reckoner system is $ 4078.7A positive net present value indicates that the intercommunicate income generated by the project or investment (in present dollars) exceeds the projected cost (also in present dollars). In general, investment with a positive NPV is a lucrative investment, and investment with a invalidating NPV is a net neediness. It is the basic element of the net investment value rule that a project or investment must be performed only if the NPV value is positive. Since the NPV of the calculator program in question is positive, it is a wise choice for the city manager to purchase this computer program.(8)The cost of equipm ent is the items purchase price. Knowing the internal rate of kick the bucket and the expected smell of the equipment, the cost of equipment purchase can be calculated using the following formula.15,000/1.12 + 15,000/(1.12)2 + 15,000/(1.12)3 + 15,000/(1.12)4 + 15,000(1.12)5= 54071.7As the result, Cost of the equipment is $ 54,071.7(9)Return on investment is a simplistic rate of return without a image of time. The IRR is calculated by compounding the time it takes to enter a profitable point. There is a limit to the evaluation by simple profit rate calculation that does not consider time.Internal rate of return (IRR) is the interest rate at which the net present value of all the cash flows ( two positive and negative) from a project or investment affect zero. Internal rate of return is used to evaluate the attractiveness of a project or investment. If the IRR of a new project exceeds a companys needed rate of return, that project is desirable. If IRR falls below the required ra te of return, the project should be rejected (Investinganswers.com, 2017). When a minimum desired rate of return is 12%, the present value of project is calculated as $ 1,646. Because the IRR is positive, over-embellished Airways Ltd. should accept this project.75000/1.12 + 75000/(1.12)2 + 75000/(1.12)3 + 75000/(1.12)4 + 75000/(1.12)5 + 75000/(1.12)6 280000 50000/(1.12) 4 + 10000/(1.12)6= 308355.6 280000 31776 + 5066.3 = 1645.9As the result, Present Value of the disgorge is $ 1,646.When a minimum desired rate of return is 12%, the present value of project is over than zero (calculated as $ 1,646). Thus, the internal rate of return is more than 12%.(10)Year1 Inflow1 + Year2 Inflow + Year3 inflow = $22,000Inflows from Year1 to Year 4 = $28,000The payback period is between Year 3 and Year 4.accurately calculatedPBP = minimum period + shortage of inflows / inflows in event= 3 + 3000 / 6000 = 3.5As a result, payback period is 3.5 years.REFERENCEAbogun, S. and Fagbemi, T. (2011). Th e Global hypothecate on Budgeting Empirical Evidence from Nigeria. International Business Research, 4(4).Ahrens T. (1997). Strategic interventions of management accountants everyday practice of British and German brewers The European Accounting look into 6(4), 557-588Anand, M., Sahay, B.S. and Saha, S., 2004. Cost management practices in India An empirical study. ASCI Journal of Management, 33(1-2), pp.1-13.Becker, S. D., Mahlendorf, M. D., Schffer, U. and Thaten, M., 2016. Budgeting in propagation of economic crisis. Contemporary Accounting Research, 33 (4), pp.1489-1517.Bruce, A., Buck, T. and Main, B.G., 2005. Top executive compensation A view from Europe. Journal of Management Studies, 42(7), pp.1493-1506.BusinessDictionary.com. (2017). What is budgeting? definition and meaning. online Available at http//www.businessdictionary.com/definition/budgeting.html Accessed 15 Jan. 2017.Choe, C., Dey, T. and Mishra, V., 2014. Corporate diversification, executive compensation and fir m value Evidence from Australia. Australian Journal of Management, 39(3), pp.395-414.CIMA ICAEW, (2004). A report on conk out Budgeting Forum. July, 2004. Retrieved December 16, 2008 from http// www.icaew.com./index.cfm/route.Conyon, M.J., Fernandes, N., Ferreira, M.A., Matos, P. and Murphy, K.J., 2011. The executive compensation controversy A transatlantic analysis.de Waal, A.A., Jap Tjoen San, R. and Zwanenburg, E. (2006), Budgetteren in Nederlandstand van zaken en ontwikkeling, Tijdschrift Controlling, Vol. 3, pp. 8-11.De Waal, A., Hermkens-Janssen, M. and van de Ven, A., 2011. The evolutionary word meaning framework explaining the budgeting paradox. Journal of accounting organizational change, 7(4), pp.316-336.Frow, N., Marginson, D. and Ogden, S. (2010), Continuous budgeting reconciling budgetflexibility with budgetary control, Accounting, Organizations and Society, Vol. 35 No. 4,pp. 444-61.Hansen, S.C., Otley, D.T. and van der Stede, W.A. (2003), Practice developments in b udgetingan overview and research perspective, Journal of Management Accounting Research, Vol. 15, pp. 95-116.Hope, J. and Fraser, R. (2003), How Managers can Break dispense with from the Annual PerformanceTrap, Harvard Business School Press, Boston, MA.Horngren C. T., Sundem, G. L., Stratton, W. O., Burgstahler, D. Schatzberg, J. (2008). Introduction to Management Accounting. (14th Ed.). cutting Jersey Pearson Prentice Hall.Investinganswers.com. (2017). Internal Rate of Return (IRR) Definition case Investing Answers. online Available at http//www.investinganswers.com/financial-dictionary/investing/internal-rate-return-irr-2130 Accessed 21 Jan. 2017.Irani, M. and Gerayeli, M.S., 2017. Relationship between Corporate Governance and CEO Compensation among Listed Firms in Tehran stemma Exchange. International Journal of Economics and Financial Issues, 7(1), pp.285-292.Jensen, M.C. (2001), Corporate budgeting is broken lets arrive at it, Harvard Business Review, Vol. 79, pp. 94-1 01.Leahy, T. (2001), The top 10 traps of budgeting, Business Finance, Vol. 7 No. 11, pp. 20-34.Libby, T. and Lindsay, R.M., 2010. beyond budgeting or budgeting reconsidered? A survey of North-American budgeting practice. Management Accounting Research, 21(1), pp.56-75.Li, Z. and Wang, L., 2016. Executive compensation incentives contingent on long-term accounting performance. Review of Financial Studies, 29(6), pp.1586-1633.Neely, A., Sutcliff, M. and Heyns, H. (2002), impulsive Value through and through Strategic Planning and Budgeting, Research Report, Cranfield School of Management and Accenture, Cranfield.Ostergren, K. and Stensaker, I. (2011), Management control without budgets a field study ofbeyond budgeting in practice, The European Accounting Review, Vol. 20 No. 1, pp. 149-81.Otley, D.T., 1994. Management control in contemporary organizationstowards a wider framework. Management Accounting Research 5, 289-299.ROZENFELD, G.C., 2017. CHAPTER FOUR dissident OPINIONS ON BUDGET ARY CONTROL SYSTEMS IN THE 21ST CENTURY picture FROM A MULTINATIONAL RETAIL ORGANISATION LOCATED IN THE UK. heretical Voices in Europe? Past, Present and Future, p.41.Zhang, C., Wang, S., Gao, Z. and Zhao, X., 2015. Study on the Manipulation mental picture of CEO Power on Executive Compensation Level A Literature Review.Reflective bear witness Grief and BereavementReflective Essay Grief and BereavementThis essay is a reflective locomote through the loss I have experienced in my life. The essay will discuss two imitates of bereavement, dual process and continuing cleaves. Towards not only understanding self in the process of loss, but also to understand some of the theories used to assist those who are grieving. Relevant come toenced literature will be used to demonstrate understanding of the models of loss chosen for the assessment.The loss that has impacted my world most recently began with the wonderful knowledge of pregnancy. That beautiful piece of news set in motion a series of events beginning with the primary loss of fellow membership within a band, which I had created and maintained for six years. The band was a manifestation of hopes, dreams and realisations I had carried since childhood and finally began actualising in my early thirties. The secondary losings were simple I thought, as in losing the social network associated with being a band member, and the loss of a portion of identity. However, a major companionship was also helpless in the process and this in reality lay far deeper than the apparent primary loss. This friend and fellow band member M was actually my x partner and soul mate, with who I had dual-lane my life and musical experiences from the age of cardinalteen. Even though we had separated as partners we were still very snug as friends and involved musically. I had lost my x, my best friend, my band member, fellow song writer, and pain in the butt. I acknowledge that adjusting to acquirehood and the happiness of my ne w family life overshadowed the losses I was experiencing, and also my resilience, spirituality and being quite identify contributed to my ability to cope, move forward and adjust to yet another segment of my very interesting, ambitious and rewarding life.Attachment and meaning, family systems, social support, cognitive process in revision and coping, are all factors and terms associated with the theories of loss and bereavement which have preceded and help Stroebe and Schut (2007) to generate the dual process model. Their model perceives a person hesitate between loss-orientation and restoration-orientation. Loss-orientation deals with the process of having a good cry and experiencing and dealings with the olfactory property of loss, and restoration-orientation deals with getting oneself back into aromaing okay to proceed with life emotionally, physically and psychologically. Within this process of oscillation it is important to understand the need for both negative and pos itive thought processes within both loss and restoration. what is more it is important that one experiences and adjusts to both aspects of thought processes in life, even when it appears that loss is not perhaps a prominent focal point. Stroebe and Schut (2004) discuss how alliance theory plays a role within the dual process model, by aligning loss-orientation with the experience associated through loss of a relationship where the bond of addition is deep. Secondly their restoration-orientation process can align with cognitive reach theory by making use of tasks or coping strategies to assist a grieving person to find balance in their process of loss. The effect of the dual process model as Stroebe and Schut (2004b) explain is the ability to understand that people fluctuate between positive and negative thoughts and emotions. to boot by applying certain aspects of cognition tools and the understanding of hamper, a balance between the swaying emotions and thoughts can be normal ised and processed in a comfortable and personalised way as adaption takes place.In my experience of regret I for sure experienced the swapping of emotional positions such as sadness that our friendship had ceased, and feeling okay that M wanted to disconnect. I am able to reflect with both sadness and joy, when I ponder our shared fill in and experiences.However I also take great strength from my husband and son, my parents and siblings in an almost un certified process of living and loving.Continuing bonds resonated with me in that it appreciate adherence bonds dont disappear when one experiences loss or death, instead the connecter and bonds change and continue. Klass and Walter (2004) explain continuing bonds as recognition that the human tick off in both life and death is far more heterogeneous and unique than many theorists previously had argued. In addition research find that many diverse people carried on conferences and relationships with the dead. Klass, Silver man, Nickman (1996) relate that continuing bonds means that those left cigarette feel a real esthesis of the person they have lost, either unconsciously or on a conscious level, therefore their changed relationship with the deceased is a continuous process of adjustment. It is now realised people dont get over a loss of a erotic whap one, they continue to have an internal relationship or secern stories to keep their meaning alive. From what I have understood of continuing bonds dealing with grief, is simply not as simple as getting over a loss, but a process of mourning, grieving, adjusting and changing.Packman, Horsley, Davies Kramer (2006) cite Hogan and DeSantis who refer to accessory in connection with continuing bonds such as reaffirming relationships, search for understanding, checking in with deceased, reconnecting, asking for guidance, and beguileking to meet again, it seems the process demonstrates once more that extension and love does not cease with the death or loss of our love ones. Nadeau (2007) discusses continuing bonds around how families make meaning via conversations and shared feelings through storytelling, family conversation or verbalising experiences of the person who has died. In addition to dreaming, comparing and experiencing interpretations of personality, joining or linking of events or perhaps considering fatalistic observations, through which theseprocesses assist a person to deal and adjust to the loss and life without the physical presence of their loved one. It almost seems ridiculous in my mind to consider those Ive lost in life as being completely gone just because they died or have disconnected their friendship. In my personal culture of beliefs, set, and spirituality, death is but a single part of an enormous cycle where as human beings we experience the physical plane of existence, which is only a fraction of our total cycle of being and knowing.The process of writing this assessment has made me consider exactly what losses I have experienced. I began by making a time line of losses, and realised that through death I had lost four grandparents, friends, one x mother-in-law, and one current mother-in-law, nine cats, one bird, and one dog. The losses consisted of my heart at least three times, contact with aunts and uncles, and my cousins, jobs, dreams, my band, friends, even my respect at certain times, and the most significant friendship of my life prior to meeting my husband and my baby. Through contemplating my losses I can identify with certain aspects of poor self-esteem that has occurred in my life, and understand how feeling unworthy of certain considerations from friends is mixed in with the manner in which I handle loss in general. Being strong inside even though I feel alone is part of the coping mechanism loss in my life has taught me. For me being distinguish and resilient are the real keys to handling lifes myriad of experiences. Walsh (2006) suggests that beliefs and values ch assis our cultural and family historical story that in turn builds resilience, which is strongly in effect(p) in with ones spiritual beliefs and life meaning. Weiten, Lloyd, Dunn, Hammer (2009) cite Gallagher and Chase who suggest that children benefit grandly from having their virtuoso of resilience strengthened and nurtured by cherishing close relationships between children and parents. Resilience can help with the development of coping strategies, for example how to release anger, or help children be able to differentiate between risk assessment of traumatic event and management of possible danger. Furthermore the importance of relating and sharing of values and beliefs, not only in self, but also in a wider social arena, and encourage the ability to see and endeavour towards a positive future.My grit of myself as a differentiated and resilient person has also been a driving force behind my search of spiritual answers outside my birth religion. I live my life through my sa nd of spiritual knowing, which I align with the Buddhist image of dharma, reincarnation and karma. My foundation of spirituality and knowing in God as my belief and value system is how I function through lifes loves and losses. I now understand how positive functioning is interconnected with a sense of differentiation. Corey (2009) discusses, differentiation is the process of becoming an individual with a positive sense of separateness from family of origin, able to live life with an ability to accept duty for ones own emotions, thoughts, feelings, perceptions and behaviour. I am truly thankful for the two strengths of resilience and differentiation, as in whenever I feel alone in my experiencing of loss, be it as simple as feeling I have no one to talk to, I can draw from inside myself the strength to escape negative emotional spirals. I also have an immense sense of connection to a higher spirit and find great comfort in lifes meaning and feeling of universal love.Since life, lov e, death, loss and grief all are experienced, affected, and expressed, in highly individual styles and approaches it seems logical there should be different methods and theories attached to grief and loss counselling. Therefore when I look at the two models of dual process and continuing bonds, I feel it important to understand attachment in life and loss. Machin (2009) discusses that the sense of self and independence is born out of the relationships of attachment we experience across our lifespan. These attachments are what allow a person to develop resources such as coping mechanisms, resilience, and the predisposition towards either positive or negative outlooks on life as well as death and loss. Sigelman and Rider (2009) refer to Bowlbys theory of attachment, concerning how a person copes through lifes challenges and stages, which can depend a great deal on the style of attachment they have developed, such as securely attached opposed to avoidant or resistant attachment. These attachment styles play out through life in the manner of relationships beginning with family relationships, meaningful friendships, and marriage relationships, a person experiences through life and through their losses. Sigelman and Rider (2009b) cite Parkes who in conjunction with Bowlby constructed their theory of attachment model of bereavement, based on the simple fact that loss and love are counterparts that cannot be separated. Furthermore our interpersonal connections are built through attachment and centred on the conveying and sharing of love. Machin (2009b) also considers that attachment styles are also impacted through family culture, especially in how a person is taught the norms, values and beliefs surrounding appropriate mourning and grief, and life and love. As I reflect on how I seek and find support around my loosing M as a close friend, the cultural influence and norm my family advocates, is that of behaving as if nothing has changed. Almost like saying, what are you worried about, and ignoring any deep feelings that need sharing to complete the cycle of grief. In relation to attachment within my family history I would say I have learnt secure attachment as a child, but as I grew my sense of attachment to my parents and siblings had a feeling of separateness, which funnily enough I feel was the grounding for my sense of differentiation and resilience, self reliance, sense of spiritual belong and an ability to have a positive life mindset. On the toss side that separateness I felt when younger was the underlying force behind my poor self-esteem which was an enabling factor in the attachment style of relationship I shared with M.No matter the oddball of grief or loss one experiences or suffers in some way or another, love is at the heart of the felt experience. Even if the loss is as simple as the loss of a job, or perhaps a beloved cat, or friend, a partner, a mother or father, sister or brother, or sadly a child, it is love that binds us, i t is love that makes life and death worthwhile. Kubler-Ross (1998) put it very succinctly when she wrote, you should live until you die, no one dies alone, everyone is loved beyond comprehension, everyone is blessed and guided, and the hardest lesson to learn is tyrannical love, everything is bearable when there is love, and finally the only thing that lives forever is love (p288).To conclude this essay I would reflect on the importance of a counsellor taking the time to experience and deal with lifes losses and loves. Whether one chooses a particular model or process to assist the journey of self discovery, it is important to understand the underlying concepts of the attachment bonds that are formed over a life span. The bonds we form also bring the love that not only continues but also fluctuates between positive and negative emotional balancing and adjustment.