Putting together an employee performance management plan

Modern performance management models encourage employees to reach beyond what they believe is achievable. Being a key element of performance management, employee performance appraisal involves two-way feedback, development and goalsetting, allowing employees to set motivating objectives without fearing of being penalized.

Performance management and employee performance appraisal is a structured interaction between a manager and a subordinate, usually in the form of a periodic interview (annual or semi-annual). The significance of employee appraisal lays in the fact that, during the interview, the performance of the employee is investigated and discussed, with a view to recognizing strengths and weaknesses as well as opportunities for improvement and skills development. Consequently, after appropriate corrections are made and proper measures are taken, boosted employee performance contributes to organizational performance and prosperity.

Putting together an employee performance management plan requires the implementation of five important steps, which are: (1) setting expectations (2) continuously monitoring performance (3) developing the capacity to perform, (4) rating performance regularly and (5) rewarding good performance.

(1) SETTING EXPECTATIONS

Setting performance expectations and goals for groups and individuals is used to motivate employees into channeling their efforts toward achieving organizational objectives. Getting employees involved in the planning process helps them to appreciate the organizational goals, what needs to be done, why it needs to be done, and how well it should be done.

The goal of this step is to set the criteria to evaluate employee performance as successful or unsuccessful and appraise the degree of involvement to organizational goals and objectives.

Employee performance plans should be flexible to changing program objectives and work requirements.

Employee performance planning involves quantifiable, comprehensible, verifiable, reasonable, and attainable standards, which assist in holding employees accountable as individuals for work assignments or responsibilities. The evaluation standards could be categorized as follows:

a) Self-Management:

Punctual and regular work attendance, effective use of work time and resources, compliance to rules and procedures, proper maintenance and safe use of equipment, exposing elements of integrity, honesty, respect and dignity, working effectively in a diverse work environment, seeking and assuming additional responsibilities as appropriate.

b) Work processes and results:

Provision of products and services that consistently meet or exceed customer needs and expectations, use of customer satisfaction as a key measure of quality, use of appropriate problem solving methods to improve processes, collection and evaluation of relevant information to make decisions, use of good judgment, setting and adhering to priorities, meeting productivity standards, deadlines and work schedules, pursuing efficiency and economy in the use of resources.

c) Teamwork:

Support and focus on the vision, mission, and goals of the organization and team, understanding the benefits of teamwork, cooperation with other team members, recognition of the contributions of others, viewing the success of the organization and team as more important than individual achievements, contributing to the cohesion and productivity of the team, appropriate share of information internally and externally, cooperation through open and honest communication.

d) Innovation and change:

Being creative and innovative when contributing to organizational and individual objectives, expose receptivity to new ideas and adaptability to new situations, avoiding being overly defensive, expose willingness to explore different options, taking calculated risks, seeking and acting on opportunities to improve, streamline, re-invent work processes, helping other to overcome resistance to change.

e) Communication:

Active, cooperative and courteous participation in meetings, effective oral communication on a one-on-one basis and in small groups, effective oral presentations before groups, avoiding bureaucracy whenever possible in written and oral communications, demonstrating empathy with the listener or reader, provide responsive and timely responses to e-mails, phone messages and mail.

f) Development:

Participating in opportunities to enhance knowledge and skills that are identified and offered by the organization, expose self-initiation in developing or upgrading knowledge and skills, applying new knowledge or skills acquired from developmental opportunities, helping others learn new systems, processes, or programs, learning to use technology effectively, as appropriate for the job.

g) Customer service:

Understanding and being responsive to customer objectives and needs, expose sensitivity to public attitudes and concerns, being accessible, timely, and responsive in dealing with customers, handling customer inquiries and  complaints promptly, courteously, and non-bureaucratically, going the extra mile to satisfy customer needs and expectations.

(2) CONTINUOUSLY MONITORING PERFORMANCE

Consistent measurement of performance assists organizations to provide ongoing feedback to employees and work groups on their progress toward the achievement of their goals.

The goal of this step is to conduct progress reviews with employees and compare their performance against the elements and standards decided in the planning step. Measuring the actual employee performance is a continuous process which involves monitoring the performance throughout a specified period, usually a year. Ongoing monitoring provides the opportunity to test how well employees are meeting fixed standards and to make changes to unrealistic or problematic standards. Also, by monitoring repetitively, unacceptable performance can be identified at any time during the appraisal period and corrected before the end of the period when summary rating levels are assigned.

(3) DEVELOPING THE CAPACITY TO PERFORM

Developing the capacity to perform includes training, assignments introducing new skills, competencies or higher levels of responsibility and other methods. Providing employees with developmental opportunities boosts employee performance, reinforces job-related skills and competencies, and helps employees anticipate changes in the workplace, such as the introduction of new technology.

(4) RATING PERFORMANCE REGULARLY

Periodically, organizations summarize employee performance because they need to know their top performers. Evaluating employee or group performance versus the elements and standards of an employee performance plan is used to assign a summary rating of record. The rating of record is based on effort performed during the appraisal period.

(5) REWARDING GOOD PERFORMANCE

Rewarding employees, in person and/or as group members for their performance is used to acknowledge employee contribution to organizational mission. Recognition is an ongoing, inherent part of day-to-day experience. Awards regulations provide a broad range of forms that formal rewards can take, such as money, time off, and other non financial rewards. Sometimes just saying “thank you” is enough to motivate employees and it certainly functions as a reward of good performance.

An employee performance plan requires employees to act like partners or managers in this process because, at the end of the day, this plan is made for their career advancement and compensation package. In doing so, employees stay on top of what the documentation should include, understand all the touch-points in the review process and catch the opportunity to proactively take their careers a step forward, while contributing to organizational objectives.

Human resources management explained

Organizations are multifaceted. Coping with business complexity necessitates a strategic approach to the management of the employees, who separately and jointly contribute to the achievement of the strategic objectives of the organization. Human capital is the most important asset of an organization, so the proper use of a potent asset can construct a prevailing and resourceful organization. Human capital can make or break a strategy, an objective or the organization per se.

Human Resources Management (HRM) views the employees as an intangible asset, assuming they have own mental maps and perceptions, own goals and own personalities and as such they cannot be viewed as an entity. Working as the link between the organization and the employees, HRM employs both individual and group psychology to attract, retain and develop employees. In addition, HRM motivates and commits the workforce to the achievement of organizational goals through continuous motivation and organizational learning.

HRM objective is primarily to identify the core competencies and individual skills required for organizational success and then use this knowledge to develop tools to capitalize on the return on investment from human capital, while minimizing financial risk. HRM is responsible for conducting recruitment, selection, training and development, performance evaluation, promotions, career development, and redundancy of employees in an effective, legal, fair and consistent manner. Also, HRM echoes social responsibility to the needs and challenges of society by minimizing the negative impact of such demands upon the organization. Organizations should be able to use their human resources towards the benefit of the society. In addition, HRM aims to assist employees – through motivation and empowerment – in achieving their personal goals, provided that these goals enhance individual contribution to the organization.

The importance of HRM is reflected on all organizational aspects. A firm should first become aware of the employee needs, and then understand and evaluate these needs in order to instill in the employees the feeling that their work is part of their life and not just a routine obligation. When top management expects employees to take the extra mile, it should have first laid the groundwork for employee motivation and loyalty.

Of course, challenges do not cease for HRM. Recruiting and selecting the best employees is a very difficult obligation, particularly in today’s dynamic, competitive environment. Moreover, with the increase in competition, organizations need to be more adaptable, flexible, agile, and customer-centric to succeed. Within this environment, organizations must have the competencies and the tools to capitalize on the full potential of each employee in order to employ business-driven functions and influence key decisions and policies with a thorough understanding of the organization’s big picture; today and in the future.

Essential business process management tools

Business Process Management focuses on improving the agility and operational performance of an organization through the control of business processes.

Agile organizations depend heavily on Internet technologies to help them be responsive to customer needs and requirements with customized solutions and cooperation with customers and suppliers. With the use of a structured Business Process Management approach, organizations manage to integrate methods, policies, metrics, and software tools to introduce their products to the market quickly and cost-effectively, while continuously optimizing organizational activities and processes.

Information technology is a key component of business operations. IT enables radical changes to business processes thus dramatically improving their efficiency and effectiveness through the speed, information processing capabilities and connectivity of computers and Internet technologies. Analysis and modeling tools assist organizations to devise their existing processes and optimize them as well as to test and deploy software that implements these processes.

XML (Extensible Markup Language)

One of the best Business Process Management tools is XML. XML focuses on sharing structured data across different information systems, mostly over the Internet. With the support of XML, Business Process Management systems are altering the way work-flow components are implemented and executed.Used both to encode documents and to serialize data, XML structures the information, cutting it off from any functional dependency on the software that operates on it. In doing so, XML assists in the formation of a supporting infrastructure to bond the firm’s capabilities to create, deploy, and execute the entire scope of work-flow management.

BPEL (Business Process Execution Language)

BPEL for Web Services is another Business Process Management tool. BPEL is designed and developed collaboratively by Microsoft, IBM, and BEA Systems to coordinate and synchronize Web Services so they can be engaged in collaborative and transactional behavior. The use of BPEL for the proper specification of business processes and business interaction protocols extends the Web services interaction model, enabling it to support business transactions. BPEL processes function exclusively through Web Service interfaces.

BPMN (Business Process Modeling Notation)

BPMN is another Business Process Management tool primarily aiming to provide a standard notation for drawing business processes in a work-flow. This standardized graphical notation needs to be immediately understandable by: (1) the business analysts who create and refine the processes, (2) the technical developers, who implement the processes and (3) the business managers who monitor and manage the processes. Therefore, BPMN aims to serve as common language to bridge the communication gap that occurs between the design of business processes and their implementation.

Critical chain project management explained

Plan and manage projects that yield booming results is critical to modern organizations. To achieve that, project managers need to implement successfully the tools and techniques of critical chain project management. Critical chain project management is the sequence of dependent events that prevents a project from completing in a shorter interval recognizing resource as well as activity dependencies.

Critical chain project management identifies good activity time estimates and assigns available resources to activities. Addressing the problems of resources limitations and human behavior as factors that might prevent a project from being completed on time, critical chain project management (1) improves time estimates for activities, (2) redefines the concept of a critical path to include resources, (3) incorporates time buffers in the project work breakdown structure, (4) schedules activities according to the latest start schedule and (5) controls the behavioral dimensions of project management.

Critical chain project management is closely associated to the Theory of Constraints, which is a systematic management approach, focusing on actively managing the constraints that impede a firm’s progress towards the maximization of total value-added funds. In this context, critical chain project management requires ideal scenarios, flexibility, responsiveness, practical ideas, and simple methods to use information effectively through understandable software solutions.

In particular:

(1) Improving time estimates for activities

Critical chain project management approach asks two types of activity time estimates: a) an assessment of a low risk time estimate for the project activity, which would be akin to the pessimistic time estimate and b) an assessment for the most likely time estimate assuming everything would go as hoped and people devoted 100 percent of their time once they started on the activity.

(2) Redefining the concept of a critical path to include resources

Resource constraints are usually people; however they may also be physical limitations or policies. Critical chain project management expands the critical path by recognizing resource limitations and provides the focus for applying project time buffers.

(3) Incorporating time buffers in the project work breakdown structure

Once the critical chain and all of the paths feeding the critical chain are identified time buffers can be added to the network to protect the critical chain. The difference in activity time estimates between pessimistic time estimate and most likely time estimate described in (1) is used to develop feeder buffers at the point where each feeder interfaces with the critical chain. Similarly, at the end of the critical chain, a project buffer is added, while the time buffers are being used as activities in the project network. The advantage of critical chain project management approach in this case is that the time buffers, which are an accumulation of the slack along a path, are isolated places in the network rather than at individual activities as activity slack. So, management can focus on these time buffers to monitor project progress.

(4) Scheduling activities according to the latest start schedule

Scheduling activities according to the latest start schedule has the advantage of delaying project cash outflows. The feeder and project time buffers provide the protection that project managers need to avoid delays because of activities taking longer than the most likely time estimate.

(5) Controlling the behavioral dimensions

Critical chain project management is based on common sense and reality in regards to how people would work most effectively when undertaking a project. The most common problem encountered in project management is project uncertainty deriving from human resources. The behavioral dimension of project management affects both schedule and performance.

In order to control these behavioral aspects, project managers need primarily to minimize the practice of multitasking because it affects the estimates of the activity times and can delay projects. In addition, critical chain project management develops an environment where date-driven behavior is eliminated. This means that employees are not criticized for time overruns if they started the activity on schedule, worked 100 percent on it and passed on the output as soon as it was ready. Secondly, project managers need to set critical buffer levels that when reached they initiate action to remedy any problems. Finally, new projects should be added and scheduled only on the basis of the load on the critical resources.

In conclusion, what we need to achieve with project management is to manage for the uncertainty involved in a project undertaking. Critical chain project management helps managers to decrease stress on a project team, reduce cost and scheduling over-runs, control project resources effectively, and finish projects that meet or exceed expectations through planning, measuring and execution.

The dangers of dating an idea rather than a reality

People have fixations they rarely admit. Particularly, in love issues they often mistake their obsession for love believing that having someone on their mind 24/7 means they are in love. Obsession could be mistaken for passion, but it is far more delusive and destructive. Passion wears out; fixation does not.

Normally, the more we get to know someone, the less passion we feel as we realize the differences of character and behaviour. Over time, our passion transforms into love, respect, dignity and companionship. With obsession, however, things are more complicated. When we think that someone cares because we care to an extent that we become blind and we cannot distinguish between passion and obsession, then, in most of the cases, there is no relationship. People who develop obsessive personalities are less likely to exist in a relationship.

The weird thing is that obsessive people never actually get involved with their object of lust. They make up stories and fantasize how wonderful their relationship would be, but in reality they have hardly spoken to that person and they hardly know any details of character and life. As the obsession keeps growing, they practically lose themselves. Being constantly focused on the idea of being involved with that person and creating scenarios of love and affection leads them to a state of personality crisis, which over time may evolve to a personality disorder. They lose their dignity and they create a vicious cycle of a weird behaviour expressed in the form of dependence and inability to function on their own. So, basically, their fixation makes them sick eliminating the chances of getting involved with anyone.

I met an obsessive person once. She was so much into a guy, who actually never responded to her love signals. He never expressed anything more than friendship, but not even a close one; nothing that could be interpreted as infatuation, affection, or passion. Still, she was non-stop chasing him, talking to him, attaching meanings to his words and poor guy had no clue of what was going on. This kept going on, until she finally opened up and told him she cannot sleep, eat or breathe without him. He politely explained to her that he was involved with somebody else. She freaked out and attacked him. She told him stories that she thought had occurred between them. He was shocked. He had no clue because he had never behaved erotically. She accused him of all the nights she had lost her sleep, of all the hours she had spent making plans for them and thinking about their relationship. He tried to defend himself, but it was worthless. Finally, she collapsed. She said she had done everything in her power to express her feelings and full devotion and he betrayed her. She had really believed that she had a relationship with that guy because he was polite to her and nice enough to spend sometime with her during class breaks.

That guy passed away two months ago. That girl’s obsession is still on.
As I said, passion wears out; fixation does not.

Dating your friend’s crush

You’ve seen it happening from personal experience. Dating your friend’s crush may get you in great trouble. Although we experience immense sexual deliberation and we trade off our values for sexual intercourse, still there are some inherently strong values such as friendship and respect, which are fundamentally opposed to any form of negotiation. Feelings are feelings and having that crush on your friend’s crush is something you didn’t choose in the first place. Love comes naturally and we don’t really choose for whom we are falling. But, you could have controlled it.

You had a very intimate, sweet relationship with your best friend. You were talking for hours about that girl and he was so clear to you, so open about his feelings about her. He was a calm guy, rather laid back, not too loud or impressive, but he had his charms. You were the type of guy, who would never be unnoticed, always a cheerful teaser, pretty much the centre of attention.

When you met your best friend’s crush, it didn’t take you long to decide you would go for her. It was easy to attract her, not only physically, but mostly with your humorous smartness and fluent openness. You dated her and you slept with her and no harm done. When he found out, you accused him for being slow and not taking his chances with her before you. You, pretty much, explained your filthy attitude by projecting your fault on your friend’s dating style. You called him a retard. You were so cruel on him. You didn’t really care if you would lose your best friend as long as you could get what you wanted. No remorse, no regrets, no feelings of modesty for being so arrogant and manipulative. You even bragged for getting your friend’s crush.

You were not stupid at all. You knew where the limits were and you were always one step behind. You had that well-structured façade, your open, friendly, playful character, anchored with sharp mindset and extreme intuition. No doubt you were sneaky and manipulative. No doubt you had hurt your friend. Whatever your strategy was, you know you were not a descent person. You said that people are free to do whatever they like. It was your life, your crush, your need to be with that girl. You were free to date whomever you liked. You asserted there is a time and place for everything, for friends, love, work, relationships. Your friend should have learned how to establish boundaries for himself so that he wouldn’t get hurt. It was not only your fault for dating your friend’s crush. It was also the crush’s fault for dating you.

You never got in contact with your best friend again. He never got over your betrayal. Over time, you understood that friendship is the epitome of human contact and relationship. But you chose to mess up things. You never asked yourself how you would feel in a similar position, how you would react knowing that your best friend, to whom you have confided your crush, dates her and gets involved with her, ignoring your feelings and pain. It really sounds filthy, man. And it really is.

American trash and the American dream

Dear Reader

I know that you may find my article provocative or assertive. However, read my story and please feel free to comment on it. After all, we perceive things according to own mental maps and thank God for American democracy and the freedom of speech!

When first introduced, the term American Dream was referring to the belief in the freedom to achieve through hard work. Over time the term has been related to material prosperity as a result of individual skills and abilities and work ethics. And this is exactly the point I’m trying to raise in this article: material prosperity.

Two weeks ago I was at Linens ‘N’ Things looking for a toilet brush to buy. I was browsing around the store, dizzy from walking the large corridors indoors, looking at colourful pillow cases and soft bath towels, squeezing myself among shelves and other happy shoppers, feeling completely exhausted, thinking of abandon mission and go home when… I saw them! As I turned my dizzy head, I saw a huge department full of hundreds of toilet brushes of any type, colour, material, brand, even shape. Some of them were plain plastic white ones; others were longer, thicker, with an extra brush to clean the toilet underneath, silver ones, automatic ones, mechanical ones. I was in real sock and negatively amazed.

The first thing that crossed my mind was to laugh. Instead, I smiled and at a glance of an eye this smile became questioning, and resentment.

Let’s face it pals! America is so keen for sales and marketing that has created an industry for toilet brushes. I mean, think about it: what special feature should a toilet brush have? It was originally invented – and I believe it still serves this only purpose, unless otherwise indicated – for cleaning up our wastes. And all of a sudden, in the name of excessive commercialism and political correctness, there are nearly twenty types of toilet brushes to serve this only purpose.

My opposition is basically that often consumers get bombarded from useless purchasing goods because marketers believe that we truly need them. Ok, sure I appreciate the wide selection; still I’m getting confused and tired if I have to spend my time browsing over toilet brushes.

The way I see it, American dream fails to address any issue to its inner purpose. In the early years of this country people were indeed chasing something better and grandiose compared to their European peers, who were lost between mercantilism and the Middle Age. But since then, things have changed a lot. Today, we are not only attacked by recession, dollar collapse and overvalued stock prices, but also from the persistence of marketing to satisfy our wants and not our needs. For example, a toilet brush serves in cleaning up human wastes. That’s all about it. But in huge retail stores it looks like this is a form of Waste Management and environmental friendly corporate responsibility.

This is what the American dream has become. The land of opportunities seems to be laughing at own-self. There are people starving out there, in America and on the globe, and big firms create twenty types of toilet brushes for all the civilized and wealthy people, who actually have a bathroom and a toilet to clean. I would not comment on that if it was any other product. I am a victim of my era too. I love to enjoy all the goods that Mother Industry provides me with and I do enjoy them. But to be in front of an empire of toilet brushes costing from $9 to $65 (!) is beyond my perception. To my view, American dream has become American trash and Americans are confused and worried. It is really frustrating to think about material prosperity and reflect this need on toilet brushes. Wake up America! We need to act; all of us.

Samsung Omnia, Best cellular phone of 2008

In Latin, “Omnia” means “everything” and in Arabic it means “Wish”. Apparently, Samsung’s marketers kept their promise to their customers. Samsung i900 Omnia is a cell phone with an exceptional mixture of features designed to fully satisfy the needs of the modern cell phone user. Submitting to design direction and obeying the industry forces imposed largely by iPhone, the Omnia is a full touch-screen cell phone that does everything in its power to overcome Windows Mobile’s limitations and standing out as one of the best smartphones to date.

Moving right to the top of the best seller charts at launch, Samsung i900 Omnia is a Windows Mobile 6.1 platform phone with a large touch display of 3.2 inch WQVGA, which makes it equivalent to Apple’s iPhone. However, the Omnia’s resolution of 240×400 leaves Samsung behind the leaders, but on the other hand, the screen definitely offers good image quality. In regards to sensitivity feature, the Omnia is carefully designed so as every touch is accompanied by a gentle vibration, even if the user has not activated any relevant function. Moreover, the phone is extremely fashionable being one of the most attractive Windows Mobile devices.

Knowing how much technology is inside the Omnia, the most amazing feature is how light this handset is. Weighing only 122 grams including the battery and having a 12.5mm thickness, the Omnia is a really light cell phone. In line with this design, the 5-megapixel camera module and flash on the back of the Omnia glows with the battery cover, as do all soft-keys on the front and around the sides of the handset.

Being a handset that cries out high tech advancements, the Omnia offers a smooth and effortless touch screen interaction. In fact, this might be the first Windows Mobile PocketPC that shifts technology to another dimension integrating a multimedia entertainment device on which the user may watch an entire film on perfect quality, using part of the handset’s gigantic 16GB memory. Although designed mostly for business, the Omnia comes with 16GB of internal storage and microSD card slot, which allows the user to store a huge number of video formats and large playlists of music, while it supports a wide range of audio and video codecs such as DivX, XviD, WMV, MPEG4, MP3, AAC, AAC+, WMA and OGG.

On the front of the phone there are two large hardware buttons (Send/End keys), hard to use, and an “optical” mouse. When the virtual cursor is inactive, the mouse functions as a D-pad and the user has to run his finger in the direction desired. On the right side there are some other hardware buttons of an average size and easy to press and use. Those buttons have multiple functions. For example, while entering the main menu the user may activate the Task switcher or while turning the volume up the user switch on the zoom and so on. These features may not sound extremely ground-breaking, but they definitely make the phone user friendly and multifunctional.

The difference between the Omnia and basically every other Windows Mobile 6.1 phone lies in its faster hardware. With a 624MHz processor compared to typically used 528MHz CPU, the Omnia’s processor is faster and more responsive despite its weak 128MB of RAM. In addition, the Omnia’s 5MP camera is better than most phones having great extensive-for-a-phone software for photo modification and editing.

The applications contained within the Omnia provide immediate Google Search and Gmail response. Having a custom built-in A-GPS satellite navigation that uses Wi-Fi or 3G networks provide the user with faster start up time, while it allows Google Maps to be uploaded on the handset. The Omnia supports HSDPA data transfers and is compatible with 2,100MHz UMTS networks as well as 850/900/1800/1900 GSM networks when the user travels outside of the range of 3G coverage.

The Omnia is also compatible with DLNA servers and clients. DLNA is a networking model used by major electronics manufacturers particularly for media sharing. With DLNA the Omnia user may stream audio, video and images to DLNA compatible devices, such as a PC or a Sony PS3, and pull information to it. DLNA is expected to be a hotshot in the near future, a fact that makes the Omnia a ground-breaking cell phone.

How the US Securities and Exchange Commission (SEC) protects investors

Established in 1934, the Securities and Exchange Commission (SEC) is an independent agency of the U.S. Government, responsible for the administration and reinforcement of the federal securities laws. Aiming at protecting investors against fraud in the sale of securities, the primary role of the SEC is to ensure that corporate information is publicly available to investors so that they make informed investment decisions. In this context, the SEC is responsible for the regulation of the conduct of securities professionals and the orderly and efficient functioning of the markets to facilitate capital formation.

Because of the complexity of investing and the lack of any guarantee in regards to securities returns, stocks, bonds or other securities can lose their value unpredictably due to corporate developments or due to market manipulation practices. In either case, both individual and institutional investors should be given access to information about an investment prior to buying it and for the period they hold it. On the other hand, both individual and institutional investors who buy and sell securities in the stock market have a great responsibility to regulate their behavior through Self-Regulatory Organizations (SROs) such as the National Association of Securities Dealers (NASD), which operate under the supervision of the SEC.

-  Ensuring disclosure of information to investors

A significant aspect of the SEC’s role is the disclosure of important financial and corporate information to the public. Through the Division of Corporate Finance, the SEC ensures that corporate information is made publicly available to investors as a result of compliance of corporations with the SEC regulations. Companies that are listed in stock exchanges are required to file certain documents with the SEC including 10-Q Quarterly Report, 10-K Annual Report, Schedule TO for tender offer, DEFM14A for merger or acquisition and so on. These documents disclose information about the financial strength of the corporation and its business practices assisting investors to make sound investment decisions. To that end, corporations that are publicly-listed or issue new securities are required to disclose all their financial data, positive or negative, in order to ensure transparent process and facilitate investment decision making.

Through this process, investors are offered a pool of knowledge, which they can use to decide whether to buy, sell or hold a particular security. Besides, efficient flow of information facilitates capital formation and enables transparent capital markets. In this context, the SEC cooperates closely with all market participants to ensure that above objective is constantly met and that the flow of corporate information is not disrupted or manipulated by securities professionals.

-  Regulating conduct of securities industry professionals

In many cases, investors’ trust is violated by investment advisors, securities brokers and dealers and other securities professionals. The SEC is responsible for the conduct of securities professionals by establishing qualification requirements, regulating their conduct, and disciplining those who fail to abide by its rules. Generally, securities professionals should register with a SRO, meet certain qualification requirements in order to buy and sell securities and comply with the rules of conduct assumed by that SRO. Securities firms are obliged to register with the SEC and comply with its rules for the supervision of individual account executives.

Common violations of the SEC regulations may be securities price manipulation, unfair treatment of customers by securities brokers or dealers, manipulation or omission of important information about securities, insider trading and sale of unregistered securities. In case of violation of federal securities laws, the SEC can deny registration to securities firms after conducting inspections in cooperation with the NASD, the securities exchanges, and state securities commissions.

Under the federal securities laws, investors have the right to sue securities professionals if they feel their interests have been harmed as a result of violation of those laws. However, many brokerage firms require that they clients sign an agreement with an arbitration clause, which, in effect, settles any future disputes through binding arbitration. The SEC is responsible for overseeing the arbitration process, but has no authority to intervene, directly represent individual investors, or modify a final arbitration decision. In this context, further protection for investors is provided by state laws.

-  Ensuring orderly and efficient markets to facilitate capital formation

The SEC functions as a supervisory body to protect against fraud in securities sales, illegal sales practices and market manipulation in order to maintain market integrity and facilitate capital formation. Through the Division of Trading and Markets, the SEC oversees trading executed by securities exchanges, securities brokers and dealers, investment advisors, mutual funds, SROs, transfer agents, credit rating agencies, the Financial Industry Regulatory Authority (FInRA), and the Municipal Securities Rulemaking Board (MSRB) to ensure fair and orderly markets.

Besides, the Division of Trading and Markets, in cooperation with the SROs under the supervision of the SEC, is responsible for implementing the SEC’s financial integrity program for broker-dealers, reviewing and suggesting changes to existing rules filed by the SROs, and surveilling the markets.

Overall, the SEC is fundamental to the effective functioning of the U.S. economy as it ensures transparent markets and accurate information to individual and institutional investors. In that way, investors regain confidence in the U.S. stock market by being well informed about the profitability and the corporate development of the publicly listed companies in which they would like to invest. To a broader extent, the SEC contributes to a higher living standard offering to American society stability and confidence.

Gadgets for getting in shape

Spending hours in a gym is never easy or funny. For those who still keep postponing their daily workout but need desperately to get rid of the extra weight, modern technology has come up with alternative methods to make exercise an easy deal.

Here are some of the best gadgets in the market to help you get in shape:

1. Wii Fit Plus

Wii Fit Plus is probably the most popular and effective way to keep you in shape and lose weight. And most important, the most fun one! Owning a Wii Fit is like having your own personal trainer in the comfort of your home. You can choose between training, strength training, aerobic, yoga and a series of mini games to help you work out. Standing on its revolutionary Balance Board controller, you are challenged to follow the virtual trainer and complete the workout. You cannot cheat or escape exercises as the Balance Board controller tracks every motion and body position making sure you do every exercise right! You are even prompted to complete sets of crunches, squats and push-ups, while your virtual trainer is encouraging and advising you all the way through.

What is really great about Wii Fit are its mini games and the philosophy about them. By playing games like golf, skateboarding, martial arts training, riding a virtual Segway or becoming a Super Mario yourself, you lose weight and exercise all major body muscles avoiding the boring hours in an actual gym.

2. Nike and iPod Sport Kit

Combining two of the most popular products, Nike shoes and iPod, you can ‘Rock and Run’ as the official ad prompts you. By placing the sensor on the specially designated spot of your shoes, you can have a complete analysis of how many meters you have run, how many calories you burned and the total exercise time. And during all that time, you can enjoy your favorite playlists loud and clear. You can even choose specific songs when you need extra motivation.

During workout, your iPod informs you of the time, pace, distance and calories you have already burned in order to keep you in track and motivate you to reach your daily goal. After you are done, you can also sync your iPod to your personal computer, download all data and manage your progress day by day.

3. Suunto T6 Wrist Top Computer

Heart rate monitors are the latest trend; personal trainers and athletes around the globe use them to enhance their daily training. But, Suunto T6 offers much more; it features personal trainer software able to measure distance, heart rate, speed, air pressure, altitude and calories burned. Moreover, you can store up to 25 different logs that you can easily upload to your computer for further analysis. Suunto T6 has evolved into a necessary gadget for those who take exercise seriously.

4. PumpOne

PumpOne is said to be the best, most comprehensive and full fitness guide. All you have to do is to download the software to your iPod, iPhone, iPod Nano and to almost any handheld device and you are ready for action. PumpOne will guide you through giving you detailed instructions in form of videos and sound of which exercises to perform and in what turn and intensity. The same time, you can also listen to your favorite tunes without interrupting the program’s flow. Moreover, you can add your sex, age, weight and height and PumpOne will find the most suitable exercises for you.

5. FitBit

With FitBit, you can keep track of every single move you make using the technology of accelerometers. You can either wear it on a wristband or clip it directly on your clothes and it will measure the distance, steps taken, calories burned and heartbeat rate. If you wear at night, you can even find out the quality of your sleep calculating your total moves and cardio rate status. Even though FitBit is about to be released on February 17, many training magazines and websites are already praising its capabilities.