Citation
The use of a multivariate organizational behavior model in describing individual, group, and intergroup behavior

Material Information

Title:
The use of a multivariate organizational behavior model in describing individual, group, and intergroup behavior a comparison of three manufacturing firms
Creator:
English, Jon, 1933-
Publication Date:
Language:
English
Physical Description:
xii, 340 leaves. : illus. ; 28 cm.

Subjects

Subjects / Keywords:
Control systems ( jstor )
Employee supervision ( jstor )
Formal authority ( jstor )
Information storage and retrieval systems ( jstor )
Labor ( jstor )
Leadership style ( jstor )
Modeling ( jstor )
Personnel evaluation ( jstor )
Questionnaires ( jstor )
Subordinate personnel ( jstor )
Dissertations, Academic -- Management and Business Law -- UF ( lcsh )
Industrial organization -- Case studies ( lcsh )
Industrial sociology -- Case studies ( lcsh )
Management and Business Law thesis Ph. D ( lcsh )

Notes

Thesis:
Thesis--University of Florida.
Bibliography:
Bibliography: leaves 336-339.
General Note:
Typescript.
General Note:
Vita.

Record Information

Source Institution:
University of Florida
Holding Location:
University of Florida
Rights Management:
Copyright [name of dissertation author]. Permission granted to the University of Florida to digitize, archive and distribute this item for non-profit research and educational purposes. Any reuse of this item in excess of fair use or other copyright exemptions requires permission of the copyright holder.
Resource Identifier:
000585259 ( ALEPH )
14206016 ( OCLC )
ADB3892 ( NOTIS )

Downloads

This item has the following downloads:


Full Text














The Use of a Multivariate
Describing Individual,
A Comparison of


Organizational Behavior Model
Group, and Intergroup Behavior:
Three Manufacturing Firms


JON ENGLISH


A DISSERTATION PRESENTED TO THE GRADUATE COUNCIL
THE UNIVERSITY OF FLORIDA IN PARTIAL
FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE
DOCTOR OF PHILOSOPHY

















TABLE


OF CONTENTS


Page


LIST

LIST


OF TABLES


OF ILLUSTRATIONS.


ABSTRACT


Chapter


INTRODUCTION


S S S S S S SS S S S S C Ii


Obje


active


Study


of the S


Limitations
Importance
Methods of


Data


tudy
the
the


Stud


Study.


Gatherin


* C S S S S S S
* C S 5 9 5 S C C C


and Measurement


Implementation


the Stud


Succ


feeding


Chapt


ers.


THE MELCHER ORGANIZATIONAL


Introduction
Structural V
Leadership V


Behavioral
Limitations
Conclusion


BEHAVIOR MODEL.


5 0 5 0 9 *S S C C S S16


ariables
ariables


Variables


Mode


DATA


DESCRIPTION
Introduction


OF PLANT


Primary
Mediatin


Structure


q tre. ua


Variables


Vari


Plant


ables


Plant A


Leadershi


tensions


Plant A


Behavi


DATA


oral


DESCRIPTION


Profile of

N OF PlANT


Plant A.


Introduction


Primary
Mediatin


Struc


tural


Structural


'Varia~bles


Variable


Plant


Plant


Leader


shin


uimens


ions


'.5.


Pin nt-


IIZ.


;cur~L LI IL








.Page


Leadership
Behavioral


Dimensions
Profile of


of Plant


Plant


S. 107
. 114


CONTRASTS


AMONG


THREE


PLANTS


Introduction
Differences
Differences
Differences


S S t S SS S S 0 124


in Behavior
in Behavior
in Behavior


etwee


Between
Between


Plants
Plants
Plants


A and B


A and
B and


. 125
. 132
. 134


VII.


SUMMARY AND CONCLUSION


Summary 137
Conclusion . 138


GLOSSARY


APPENDICES


Memorandum and


estionnaires.


to the Lead


ership


stionnaire


with


Headin


Added


and Non- indomized


Key
Adde


to the Behavioral


d


Primary an
Behavioral


Non-Randomi
d Mediating
Profiles o


Que
zed


stionnaire


Struc


tural


with H


Leade


eadin


rship,


Plant A


Primary


and Mediatin


Structural


Lead


ership


Behavioral
Primary an
Behavioral


Profiles


Mediating
Profiles o


Plant


Structure


Lead


ership


Plant


SELECTED


BIBLIOGRAPHY.


BIOGRAPHICAL SKETCH.















LIST


OF TABLES


Table


Page


Degree


of Cooperation


Obtained


from


Three


Plants


the Research


Study.


S S S S SS 56


Plant A


naire Items


rage
by


Response
Variable


to Primary


and Work


Struc


tural


Ques


tion-


Group.


Plant
naire


A Ave
Items


rage


Response
Variable


to Mediatin


and Work


Struc


Group.


tural


estion-


S. 35


Plant A


rage


Response


Nine


Second


Level


sors


to Leadership


Questionnaire


aluating


the Plant


Manager


Leadership


Style


Variable.


S S S S S S S S U39


Plant A Aver


age Response


Foremen


and Other


Salaried


Personnel
Immediate


to Lead


ership


Superior's


Lead


estionnaire


ership


Style


Evaluatin


Variable


Their


and Work


Group


S a S S S S S S U S S5 043


Plant


Behavior
Variable


Response of
Ouestionna


and Work


Eight


Desc


Group


second
ribin


Level


Supervi


Employee


sors


Behavior


S U S S U S S S S S S S S


Plant A Aver


Personnel
Behavior


age Response


to Behavior


Variable


Ques


Foremen


tionnaire


and Work Group


Desc


Other
ribin


Salari


Employee


S S S S S S 557


Plant
naire


rage


Items


Response
Variable


to Primary


and Work


Structural


Group.


stion-


a S U S S S 568


Plant
naire


Items


rage Response
bv Variable


to Mediating


and Work Group.


Structural


Question-


S S S S U S 571


Plant


Average Response


Second Level


ervi


sors


leadership


Ques


tionnaire


aluating


Plant


Manager


Lead


ership


ySty.


Variable.


S U S S S S U S S S U 574


Plant


Pprgnnnpl -t


rage


Response


-n T.p ndrnrh-n 0


of Foremen a
rn^*cl-i nnnnf-?rc'


Other


Salari


Fvrl in tna


ThP-i r







Table


Page


Plant


B Response


of Five


Second


Level


Supervisors


Behavior Que
Variable and


stionnaire D
Work Group.


describing


Employee


Behavior


. Plant


B Average


Response


Foremen


and Other Salarie


Personnel
Behavior


to Behavior


Variable


stionnaire


Desc


ribin


Emplo


and Work Group


Plant
naire


C Average


Items


Response
Variable


to Primary


Struc


and Work Group


tural


Ques


tion-


S 102


Plant
naire


C Average


Items


Response
Variable


to Mediatin


and Work Group


Structural


Ques


tion-


S. 106


Plant
Four


C Average
Supervisors


response
to Lead


Assistant


ership Questi


Plant


onna


Mana


Evaluating


Plant Manager


s Leader


ship


Style


Variable.


Plant
Leade


C Average


rship Que


Response


stionnaire


of Supervi
Evaluating


sors


and 3


stant


Plant


Manager


s Lead


ership


Variable


S. 110


Plant


C Average


Personnel
Immediate


to L


Superior


Response


ership Que


s Lead


of Foremen


stionnaire


ership


Style


and Other


Evaluatin


Salaried


Their


Variable


Work Group


Plant


C Response


stionnaire


Desc


Assi


ribin


stant


Employee


Plant


Behavi


Mana


of W


to Behavior
ork Groups


Plant


C Response


scribing


Employee


Supervi


sors


Behavior


to Behavior


Variable


stiornaire


and Work G


roup


Plant


C Average


Resp


onse


Foremen


and Other


sonnel


to Behavior


Ques


tionn


aire


Desc


ribing


Emplo


Behavior


Variable


and Work Group


Summary o
of Plants


Structural


, Leadership


and Behavioral


actors


, and C


Number


of Individual


a Formal


Unit


and the


Corre


spond-


Values


on a Size


Scal















LIST


OF ILLUSTRATIONS


Figure


Page


Re search


D i .* S 7


Summary


of the Structural


and Leadership


Variables.


. 19


Summary


of the Behavioral


Indices


S. 23


Organization


Char t,


Plant A


S S S S S S S S C 529


Organization Chart


Plant


50 0 S S S S C C S S C 566


Organization


Chart


Plant


S C S S 04 5C S100


Primary
Group 1,


nd Mediating
Plant A. .


Structural


Variable


Profile


Work


Primary
Group 2


Primary
Group 3


nd Mediating
Plant A .


and Mediating
Plant A. .


Struc


Struc


tural


tural


Variable


Variable


Profile


Profil


Work


Work


Primary
Group 4


and Media tin


Plant A.


Structural


Variable


Profil


Work


S S S 4 5 5 5 S S 4 S S S S S 0225


Primary
Group 5,


and Mediatin
Plant A. .


Structural


Variabi


Profil


Work


Primary
Group 6


Primary


nd Mediating
Plant A. .


and Mediatin


Struc


Struc


tural


tural


Variable


Variabi


Profile


Profile


Work


Work


Group


Plant A.


Primary


and Mediatin


Structural


Variable


Profile


Work


Group


Plant A.


Plant Manager's


Leadership


Profile


Plant


" -~"


Design








Figure


Page


Second


Level


Supervisor


s Lead


ership


Profile, Work Group


Plant A.


S. 233


Second


Level


Supervisor


s Lea


ership


Profile


, Work Group


Plant A.


. 234


Second


Level


sor


s Lead


ership


Profile


, Work Group


Plant


a a S S S S S a a a a S a a S S235


Second


Level


Plant A.


Supervisor


s Lead


ership


Profile


, Work Group


236


Second


evel


Supervi


sor


s Lead


ership


Profile


, Work Group


Plant


S a C S S S S S S S S S S Sa S237


Second


Level


ervi


sor


s Lead


ership


Profile


, Work Group


Plant A.


* .238


Behavioral


Profile


of Empl


oyees


rvisor Response


Work


Group


Plant A.


S S S S S S S S S S S S 5239


Behavioral


Group


Profile


Plant A.


Emplo


yees


sor


Resp


onse


Work


241


Behavioral


Profile


Employees


rvisor Re


sponse


Work


Group


, Plant


S......... S 243


Behavioral Profile


Empl


oyees


rvisor Re


sponse


Work


Group 4,


Plant


S S S S S SS S S S S 5245


Behavioral


Profile


Emplo


yees


ervisor


Response


Work


Group


Plant


S. . 247


Behavioral


Profile


Empl


oyees


uperv


isor


sponse


Work


Group 6,


Plant


S S S a S S S S S S S S 5249


Behavioral


Profile


Employees


ervi


sor


sponse


Work


Group


Plant A.


S a 251


Behavioral


Profile


Employees


rvisor


Response


Work


Group


Plant A.


S. 253


Behavioral
Personnel


Profile
Response


Empl


oyees


Work Group


Foremen


Plant A


and Other S


alaried


S. 255


Behavioral
Personnel


Profile
Response


of Empl


oyees


Work Croun


Foreme


Plant


I-


n and


I-'


Other


Salaried


- 9 7








Figure


Page


Behavioral
Personnel

Behavioral
Personnel


Profile
Response

Profile
Response


of Employees,
Work Group 4,

of Employees,
Work Group 5,


Foremen
Plant A

Foremen


and Other


and Other


Salaried


Salaried


Plant


Behavioral
Personnel


Profile
Response


of Empl


oyees


Work Group


Foremen and


Other Salaried


Plant A


Behavioral
Personnel


Profile
Response


of Emplo


yees


Work Group


Foremen


Plant


and Other Salaried
S 267


Behavioral
Personnel


Profile
Response


of Emplo


yees,


Work Group


Foremen
Plant A


and Other


Salaried


S S 269


Primary
Group 1


Primary
Group 2


and Mediating
Plant B. .


and Mediating
Plant B. .


Struc


Struc


tural


tural


Variabi


Variable


Profile


Profile


Work


Work


Primary
Group 3


Primary
Group 4,


and Mediating
Plant B. .


and Mediating


Plant


Structural


Structural


Variable


Variable


Profile


Profile


Work


Work


S S S C S. S S S S S C S C275


Primary


and Mediating


Struc


tural


Variable


Profile


Work


Group


Plant


S* 276


Primary
Group 6,


and Mediating
Plant B. -


Struc


tural


Variable


Profile


Work


Plant Manager


s Leadership


Profile


, Plant


* 278


Second


Level


Supervisor


s Lead


ership


Profil


, Work Group


Plant


S S a S C S S S S S S S S S S 5279


second


Supervisor


s Lead


ership


Profile


, Work Group


Plant


S S S S C S S S S S S S S S S 5 5280


Second


Leve


Supervi


sor


s Leade


rship


Profile


, Work Group


, Plant


S. 281


second


Leve


Supervisor


s Leadership


Profile


, Work Group


4, Plant B


* S S S S282









Figure


Page


Behavioral
Work Group


Profile


Plant


of Employees


Supervisor


sponse


S S S S 4 4 4 5 4 5 5 4286


Behavioral
Work Group


Profile


Employees


Supervisor


Response


Plant


Behavioral Profile


of Emplo


yees


uperv


isor


Response


Work Group 4,


Plant


S S S S S S S S S S S S S S S 5 9 C290


Behavioral
Work Group


Profile


Plant


Employees


supervisor


Response


S S S S S S S S S SS 5292


Behavioral


Salaried


Profile


Personnel


Employees


sponse,


Foremen


Work Group


and Other


Plant


Behavioral


Profile


of Emplo


yees,


Foremen


and Other


Salaried


Personnel


sponse,


Work Group


Plant


Behavioral


Salaried


Behavioral


Profile


Personnel


Profile


of Emplo


Response,


of Emplo


yees,


Work


yees,


Foremen


Group


Foremen


and Other


Plant


and Other


Salaried


Personnel 1


sponse, Work Group


Plant


Behavioral


Salaried

Primary


Profile


Personnel


and Mediatin


of Employees,


sponse, Wor

Structural


Foremen


k Gr


Variable


and Other


Plant


Profile


Work


Group


Plant


Primary


and Mediatin


Struc


tural


Variable


Profile


Work


Group


Plant


Primary


Mediatin


Struc


tural


Variable


Profile


Work


Group


Plant


Primary
Group 4,


Mediatin


Structure


Variable


Profile


Work


Plant


Primary


Mediati


Structural


Variable


Profile


Work


Group


P S .


Primary


and Mediating


Struc


tural


Variable


Profile


Work


Group


Plant


S S S S S S S S S S


Primary


and Mediati


Struc


tural


Variable


Profile


Work


n. -*1 -


Plant


rr


I









Figure


Page


Second


Leve


Supervisor


s Lead


ership


Profile


, Work Group


, Plant


second


sor


s Lead


ership


Profil


, Work Group


Plant


S S S S S S S S S S S S S315


Second


Leve


ervisor


s Leade


rship


Profile


, Work Group


Plant


S S S S S S SS SS S S a316


Second


ervisor's Lead


ership


Profile


, Work Group


Plant


S S S S S S S S S S S S S S S 5317


Behavioral


Response,


Profile


of Emplo


Work Groups


yees,
and 3


Assistant


Plant


Plant


Manager


318
S S SS S


Behavioral


Profile


of Employees


ervisor


Response


Work


Group


Plant


S S S S S S S 320


Behavioral


Profile


of Employees


, Supervisor


Response


Work


Group


Plant


S S S S S S S S S S S S S S 5322


Behavioral


Profile


of Empl


oyees


, Supervi


sor


Response


Work


Group


Plant


S S S S S S S S S S S S S S S S S S 5 324


Behavioral


Profile


Employees


Superv


isor


sponse


Work


Group


Plant


S S S S S S S S S S S S S 5326


Behavioral
Personnel


Profile
Response


Empl


oyees


Work Group


Foremen
, Plant


and Other


Salaried


S 328


Behavioral
Personnel


Profile
Response


of Empl


oyees,


Work Group


Foremen


and Other


Salaried


Plant


Behavioral
Personnel


Profile
Response


of Empl


oyees,


Work Group


Foremen and


Plant


Other


Salaried


. o 332


Behavioral
Personnel


Profile
Response


of Empl


oyees


Work Group


Foremen
, Plant


Other


Salaried


. . ^314















Abstract


of Dissertation


Presented


to the


Graduate


Council


of the University


of the Requirements


for the


of Florida


Degree


in Partial


of Doctor


Fulfillment


of Philosophy


OF A MULTIVARIATE


ORGANIZATIONAL


BEHAVIOR MODEL


DESCRIBING


INDIVIDUAL,


GROUP


INTERGROUP


BEHAVIOR:


A COMPARISON


OF THREE


MANUFACTURING


FIRMS


Jon English


August,


1972


Chairman:


Major


Dr. William


Department:


Wilmot,


Management


The p

behavioral


primary ob

patterns


jective

that e


of this


xist


study


in organizati


to describe

ons in terms


and analyze


of the influenc-


forces


of structural


and leadership


variables.


A secondary purpose


of this


study


to emplgy


a new multivariate


"systems"


model


that


purports


to identify


certain


variables


that


explain


human


behavior


within


an organization


assess


the operational


feasibility


of the


in empirical


research.


A field


study was


conducted which


included


three


manufacturing


plants


of the


same


corporation


but geographically


dispersed


within


southeastern


part


of the United


States.


All the salaried


personnel


each


of the three


plants


were


included


in the study.


Data


concerning


the structural


, leadership,


and behavioral


factors


existing within


plants were


there


from


personal


interviews,


observation,


use









Several


general


conclusions


can be reached


from


the results


this


research.


The analyses


of the behavioral


patterns


evidenced


the three


plants


and the variables


which


influ


enced


their


development


were


found


to be almost


entire


in keeping with


the available


research


literature.


This


exploratory


study


not utilize


statistical


techniques


in assessing


the validity


of the model.


The basic


assumptions


and the


initial


conceptualization


underlying


the model


were


assumed


as given


are still


to be


proven


subsequent


research.


The model


did provide


easy


means


to collect


data


in the


very


complex


area


of organizational


behavior.

study when


necessity


employing


to clearly


the model


was


define

probably


and specify

the single


the units


most


under


important


result


of the study


regarding


its operational


feasibility.














QIAPTER


INTRODUCTION


Consultants


and university


professors


management


have


been asked


many


times


practicing


managers:


"How


do we


motivate


our employees?"


"Why


our employees


have


the way


they


do?"


"What


can


we do


change

increase


our organizational

ed realization of


structure


individual


environment


company


to allow


goals?"


for the


Students


organizational


behavior


realize


that


initially


answers


to all these


and other


similar


questions


are based


upon


rather r


limited


and,


many


instances,


tenuous


knowledge


and information.


gains


that


are to be


mad e


in specifically


answering


these


questions will


have


to be rooted


in an


increased


body


of empirical


research


on mere


speculation.


This exploratory


study


then


concerned


with


use of


a multi-


variate


behavioral


model


explaining


behavior


within


an organization


based


upon


data


collected


in three


field


studies.


Objectives


of the Stud


Organizations


continually


facing


the need


to change


because


rapidly


accelerating


technolo


and social-political-economic


pressures,


find


themselves


in the


unenviable


position


of accommodating


all these


exte


rnal


and internal


pressures.


Modification


of what


presently


exists









be integrated


and consistent


throughout


the organization.


example,


a company


tha t


tha t


emphasizes


selects


democratic,


engages


in management


participative


development


leadership


styles


training,

and then


requires


its management


to operate


an organizational


environment


hostile


to this


mode


is asking


for ineffectiveness,


inefficiencies,


frustration,


turnover


and,


in general,


unfavorable


attitudes


and be-


havior


from all


its employees.


primary


objective


of this


study


to describe


and analyze


the behavioral


patterns


that


exist


in three


organizations


terms


the influencing


forces


of structural


and I


ership


variables.


emphasis


will


directed


toward


the analyses


of the


contrasts


between


the three


plants


in the study


not on the


contrasts


within


each


plant.


There


seems


to be


no easy way


to obtain


an overall


understanding


of the multiple


influences


that


exert


pressures


on behavior


organ


zations.


A-t


we are to gain


further


insight


into


organization


behavior we


must


understand


the influence


that


a single


variable


plays


alone,


and then


pursuing


one by


one the influencing


forces


exerted


by a multitude

of the entire


of variables we


organization.


can hope


This


to obtain


understanding


a unified


can best


understanding


be accomplished


use of


a model


that


represents


an organizational


system and


functions


to integrate


data


about


the systemT


behavior


in such


a way


as to provide


information


about


characteristics


of that


behavior.


model


tha t


will


be employed


in this


stud


is the Melcher


Organizational


Behavior


Model


develop


Professor


Arlyn


SMelcher


of Kent


State


*1









aim of


this


exploratory


study


on a


broad


investigation and


understanding


of behavior


tha t


is possibly


influenced


a multitude


of factors


existing within


the organizations.


This


study


is not


con-


cerned


with


investigating


a few


or even


a dozen


variables


that


determinants


of behavior,


but rather


in exploring


the possibility


numerous


factors


which


be influencing


behavior.


this


reason


"systems"


model


developed


Dr. Melcher


best


meets


the objective


of this


study


over


other


existing


organizational


behavior


models which


lack multivariate


measurement


capacity


important


for this


exploratory


study.


The variables


of the Melcher model


have


been


identified


many researchers


and theorists


in organizational


behavior


model


attempts


to integrate


these


efforts


as the basis


for systematically


describing


and analyzing


the determinants


of behavior


and the


contrasts


that


exist.


A secondary


objective


of this


study


then


to employ


a new multi-


variate


"systems"


model


that


purports


to identify


certain


variables


tha t


explain


human


behavior within


the organization.


The underlying


emphasis


of the model


upon


cause


and effect


relationships


in explain-


the determinants


of behavior.


one is able


to identify


explain

plans a


causes


nd actions


of behavior,


to change


he then


or modify


is in


a position


dysfunctional


to develop


behavior


or to


further


strengthen


functional


behavior


in the organization.


There


a clear


advantage


in knowing what


presently


exists


in an


organization


prior


to any


attempts


at modifyin


or influencing


behavior.


- C-


new


are


.I









does


provide


information as


to the direction


of influence


certain


variables


exert


over


behavior.


Further,


the body


of substantive


theory


that


accounts


for and


predicts


human


behavior within


the organizational


context


is in its infancy.


Although


numerous


research


studies


that


focus


upon a


limited


number


of factors


influencing


behavior


are


availa-


ble,


they


tend


to be


narrow


in their


approach.


The resulting


fraction-


action


produced


of the diverse


analytical


perspectives


difficulties


used


in organizational


when attempting


research


to integrate


a number


of the research


organizational


studies


behavior.


into


a multivariate


It is hoped


this


approach


research


in a


study


study will


aid in


developing


the body


of organizational


behavior


theory


in enhancing


the validity


of the research


findings


that


now


exist.


Present


generalizations


organizational


of the


behavior


in which


theory


certain


provides


variables


us with


affect


numerous


behavior.


These


broad


generalizations


are commonly


accepted


students


prac-


ticing


managers.


It is hoped


tha t


this


exploratory


study will


challenge


some


of these


generalizations,


provide


further


insight


into


the limita-


tions


and qualifications


some


of the theories,


support


others,


raise


some


important t


questions


that


need


to be pursued


others


subsequent


studies.


Scope


of the Study


Three


were


process


studi


type


All three


manufacturing


plants


plants


are a part


geographically


same


dispersed,


corporation.


identity


of the corporation


granting


acceptance


for the research


study








individuals


have


been


concealed.


Otherwise


all data are


based


completely


on the actual


situation.


In each


plant


all of the salaried


personnel


which


comprise


management or

few instances

supervision o


the plants,


seven


were


included


persons were


f subordinates.


They


in the study.


not directly

did provide


responsible

necessary in


relatively

for the

formation


were


included


in the sample


size of the study.


including


salaried


personnel,


a better


profile


of the behavioral


patterns


the leadership


dimensions


that


exist


in the plants


was possible


than


would have


been


case


a more


selective


basis


were


used.


There-


fore,


were


management


included


levels


in the study


from


the plant


comprisin


manager


a total


sample


to the foreman


size


level


of eighty-


two individuals


participated


in the


study.


Since


a secondary


y objective


of this


study was


to employ


a new


behavioral


model,


and hopefully


assess


the operational


feasibility


of the model,


a high


degree


of cooperation


from


the employees


of the


three


plants was


necessary


if any meaningful


analyses


and conclusions


were


to result.


that was

degree o


obtained


f cooperate


Table


depicts


from higher

ion from th


the underlying


management


for thi


e employees


extent

s study


elected


of cooperation

and the actual


to voluntarily


participate.


particular


research


design


that


should


be followed


was dictated


the model


model


itself.


fully presented


This


point will


in Chapter


But for


be made


clearer when


our present


discussion


It .s


sliifEir4pnr i-


hrn~iA1 u


inn4? r*nr


rri, n nfl ,-% C 4i


a,, Fa nt -


nn *r n -


T~ r








primary


and mediating


structural


variables were


measured


the plants


and for their


respective


departments.


Largely


these


factors


given


and typically


lie outside


the short-term


control


of the plant


management.

in greater


Chapters


detail


III,


regarding


and V will


the structural


describe

elements


the data

that ar


obtained


e present.


TABLE


DEGREE


OF COOPERATION


OBTAINED


FROM THE THREE


PLANTS


IN THE RESEARCH STUDY


Number of departments
involved

Number of employees
included in the
study

Number of employees
cooperating in the
study

Percent of cooperation
in the study


Total


98.8


100.0


100.0


95.5


leadership


style


of the highest


ranking manager--the


plant


manager--was


measured


along with


leadership


profiles


of the various


department


supervisors


for each


of the three


plants.


Intraplant


leader-


comparisons


will


be described


as well


as the interplant


contrasts


are








were


drawn


between


the three


plants


on significant


behavior


characteris-


tics.


Figure


depicts


the research


design


that was


followed


in this


study.


Fig.


1.--Research


Design


Variable Plant A, Plant B, and Plant C


Plant


Primary


Level


and mediating


structural

Leadership


Individual,
intergroup b

Departmental


Primary


intragroup,
behavior

Level


and mediating


structural

Leadership


Individual
intergroup


, intragroup
behavior


Structural


Profile
visors
nates'


ased


features


the plant


upon


of the plant


manager


immediate


ano super-
subordi-


evaluation


sures
sonnel


Structural


Profiles o
based upon
evaluation


Measures
personnel


of all


management


features


of each


f the department


immediate


and salaried


department


supervisors


subordinates'


management


in each


salaried


department


Limitations


of the Study


A beginning


point


in the validation


a theoretical


model


a statistical


verification


of its adequacies


based


upon


limited


empirical


data,


but rather


the collection


a body


of information


that


can be


--~~-t.-~~~-A--~ -1 a r


I....


-


.r


J .


rr 1


4








must


be conducted


secure


empirical


data on


the variables which


underlie


concepts


of the model.


Data


gained


through


use of questionnaires


direct


observations,


and personal

the variables


interviews


that


during


the model


this


study provide


identifies


information


as influencing


behavior


regarding

r. The


findings


from


this


study,


others


that


follow using


the model,


provide


for the increased


body


of information


which


so necessary


the development


new


or improved


theories.


Therefore,


is not


the intention


of this


study


to critically


analyze


the Melcher


Organizational


Behavior


Model


employing


statis-


tical


measures


of central


tendency


variation;


determination


significant


variable


changes


a T-test,


median


test,


and F-test;


by utilizing


an independent


multiple


variable


regression


can


predict


to determine


the dependent


the strength


variable.


with


This


which


task


will


be left


to other


researchers


that


follow


as they


attempt


to validate


the model;


utilizing


for their


analyses


data


obtained


in many


diverse


studies


such


as this


one.


In addition,


i~ti


not


purpose


of this


study


to single


plant


goals


as being


or obj


more


ectives


successful


whatever


vis-a-vis


these


another


might


in realizing


Therefore,


specific


no criteria


measures


of the relative


success


of the three


plants


were


used.


Importance


of the Study


Beyond


the stated


objectives


of this


study


lies


singular pertinence


to practicing


managers.


If the model


can


identify


those


factors


which


one









on behavior

conducive t


can


o more


place


effective


manager i

problem


n a


psychological


search


into areas


frame

now


of mind

largely


recognized


and/or


ignored


and hopefully,


a better


solution.


time


some


has arrived where


of the organizational


we must


behavior


now move


studies


beyond


and broaden


narrowness


scope,


and necessarily

practicing manag


the complexities,

ers are more conc


our subsequent


:erned with


research.


insufficient


Many


explanation


human


behavior


in organizations


than


they


are with


the increased


com-


plexity


associated with


a more


encompassing


approach.


While


it is


true


that


some managers


are


seeking new


answers


to their


people


problems,


it is also


equally


true,


and probably


a greater


extent


other


prac-


ticking managers


are alarmingly myopic


in their


approaches


to operational


problems.


For example,


consider


an organization


that


finds


itself


with


an extraordinarily


high


absenteeism rate.


Two typically


expressed


reasons


fault


employees


or their

selection

usually


absenteeism


from a n

follows),


problems


lumber


or that


is that


of demeaning


one has


the emplo

statements


to expect


yees

abou


it beca


are at

t their

use of the


(meaning


if the


managers


explain


their


content

are aware


absenteeism


or nature


of the task).


of and understand


problems,


On the other


the variety


they might


hand,


of factors


more


that


inclined


center


their


attentions


on true


problem


solution


engage


symptomatic


actions


or no actions


at all.


systems


model


can aid


managers


in providing


an increase


the knowledge


and understanding


of the multiple


factors


which


influence


un-


I


*


I








Although


the study


several


specific


objectives


toward which


the majority


remiss


of attention


if the underlying


is directed,


importance


the author would


the study were


indeed


noted.


Method s


of Data


Gathering and Measurement


Familiarization


with


the corporation,


the plants,


the manufac-


during


process


was


obtained


over


a one and a half


year


period


in which


the researcher was


engaged


in a


series


management


development


training


programs


at the plant


level.


information


obtained


served


as the basis


for refinement


of the questionnaire


and provided


additional


insights


into


a variety


of interrelationships


that were


important


the final


analyses.


Further,


company


documents


were


surveyed


in order


to gain additional


understanding


of the


nature


and functions


of the


plants


the departments


within


each


plant.


techniques were


use of


employed


a questionnaire


in the actual


(see


collection


Appendix A).


of data.


The second


was


personal


interviews.


During


the early


stages


of the research


structured


interviews


that


were


conducted


covered


a broad


range


areas


and problems


within


the plant


and corporation


Later,


inter-


views


that


followed


were


more


structured


and specific.


Through


interviews


it was


determined


that


reference


to "work


groups"


was


probably


a clearer


designation


than


reference


to departments.


precise


definition


of the various


"work


groups"


under


study


becomes


critical


within


context


of the model.


Therefore,


attention must


be directed


toward


assurance


that


the respondents


understand


what


the various


was


unr-








leadership


dimensions.


Dr. Melcher's


original


questionnaire


with


modifications


purported


intergroup


behavior


measure


behavior.


variables


was used


individual


These


defined


measure


behavior


correspond


behavior.


, intragroup


directly with


in the theoretical


The questionnaire


behavior


the thirty-three


modified


model.


questionnaire,


which


was


used


to measure


behavior,


many


of the


questions


reworded


in keeping with


the organizations


type


of business


vernacular,


the descriptive


headings


omitted


and the order


the questions


was


spondents would


instead


randomized


react


of responding


to these

to the c


o reduce

headings

ontent of


the possibility


and general


each


that


groups


question.


some


re-


of questions


An example


the behavior


questionnaire


appears


as a part


of Appendix A


and Appendix


provides


a key


to the behavioral


questionnaire


with


headings


added


non-randomized.


basis


for the development


of the leadership


questionnaire


Dr. Melcher's


Leadership


Profile


which


purported


to measure


leadership


emphasis, pa

In addition,


dimensions


.rticipation,

miscellaneous


of representation,


direction, r

s leadership


ule


interaction,


orientation,


dimensions


standards,


and motivation.


of technical


qualifi-


cations,


action


orientation,


problem


skills


and personal


abilities


were


included


(see


the glossary


for the operational


definitions


of the


leadership


variables).


The original


instrument


contained


forty-three


questions


with


the last


being an


open-ended


question


requesting


respondent


to list


factors


he felt might


have


been


omitted


in de-


A~ l *~ 4l.~4 ~2 2----


-


some


was


L








appear a

omitted.


LS separate


numbered


modified


questions


questionnaire


and the open-ended


consisted


question was


of sixty-six questions


which


were


worded


to fit the research


study.


The descriptive


headings


of the original


questionnaire were


eliminated


and the order


of the


question was


randomized.


An example


of the leadership


questionnaire


appears


as a part


of Appendix A,


a key


to the leadership


question-


naire


with headings


non


-randomized


arrangement


provided


Appendix B.


model


provide


for personal


observation and


interviewing


key personnel


with


questions


based


on the variables


identified


model


, to be utili


to measure


the structural


elements


that


purport


to influence


and discussion


superior


and determine


behavior


of the variables)


in obtaining


see


This


the structural


the glossary


method


indices


for the d


was considered


since


definition


to be


a considerable


number


of explanations


definitions


and example


were


necessary


assure


that


the respondent


understood


the question.


decided


that


the reliability


and validity


of the structural


data


would


be increased


use of


a combination


of personal


inter-


views,


observation


, and a questionnaire.


A questionnaire


based


upon


the operational


definitions


of the structural


variables was


developed


containing fif

and behavioral


ty-three


questions


questionnaires


see


which


Appendix A)


call


Unlike


for the responded


the leadership

nts own per-


sonal


perceptions,


the structural


questionnaire


that was


developed


asked


for facts


that were


non-personal


by nature.


Therefore,


no attempt was


- -. A- ----- --A- -- -. S


- r


was


1


l


1.. ,


*1


.,,,_,,,,,, I


J








At the time


that


this


study was


undertaken a


personality


question-


naire


been


thoroughly


developed


to the extent which


the behavioral


and leadership


had.


was decided


that


no appreciable


loss


in meeting


the objectives


of this


study would


result


the exclusion


of the


personality


dimension.


A pilot


test


of the questionnaires


that were


used


was


conducted


a different


but similar


type


of organization


to the three


that


were


included


corrections


in this


were


study.


made


Poorly worded


prior


questions


to administering


the final


other necessary

I questionnaires


to the individuals


in the study.


Implementation


of the Study


Top management


in each


of the plants


fully


cooperated


throughout


the study.


Prior


to the time


that


the questionnaire


was


distributed


to the part


cipants


in the study,


an announcement


was communicated


the plant


managers


the study,


what


to all salaried

the study was


personnel


for,


regarding who was


and briefly


conduct-


its importance.


They were


requested


to attend


a meeting


, during


normal


working


time,


learn


more


the study.


researcher


during


this


meeting


read


aloud


the memorandum


Appendix A.


that


The fact


appears


that


as a part


the study was


of the research


the researcher'


questionnaire


alone


a company


undertaking was


stressed.


The confidentiality


of the study


and the desire


for full


voluntary


cooperation was


repeated


several


times


during


the meeting.


An organizational


chart


depicting


the various work


groups


referred


to in the questionnaire was


drawn


on a


blackboard.








number


(for


the exclusive


use of the researcher)


the work group


was written


on their


individual


questionnaire.


Each


participant


given


a plain


envelope


and instructed


to place


completed


question-


naire


in the envelope


the entire


time


answer


seal


questions


The researcher was

and to personally


available


during


collect


completed


questionnaires


Most


participants


complex


the questionnaire


one hour.


Those


on vacation


high


emplo


yees


completed


percentage


on the night


and returned


of participation and


and afternoon


their


shifts


questionnaires


cooperation


from al


individuals


later.

I three


The

plants


has already


been


noted


and depicted


in Table


Succeeding


Chapters


Chapter


II presents


the rationale


and the thesi


underlying


Melcher


Organizational


Behavior


Model.


The determinants


of human


havior


fully


developed


and their


importance


to the organi


zation


noted.

ship a


The primary


ire discussed


and second

as to their


structural


influencing


variables


effects


along with


on behavior


leader-

Lastly,


Chapter


II deal


with


some


qualifications


that


must


be made


in the


of the model


attempt


at explaining


and predicting


behavior.


Chapters


III,


IV and V follow


an identical


format.


Each


of the


three


chapters


will


describe


one of the plants


covered


in this


study


A longitudinal


behavioral


profile


of each


plant will


be presented


alon


with


necessary


description


and results


of the questionnaire


support


of the behavioral


profile.


are


use








The analyses


plants will


and interpretation


covered


of the


in Chapter


contrasts


significant


among


the three


variabi


that


have


interacted


to cause


behavioral


patterns


tha t


exist in the


three


plants will


be isolated


and their


differences


assessed.


The conclusions


that


result


from


the analyses


of the differences


and their


impact


on behavior will


be dealt


with


in the final


chapter--


Chapter


VII.


Summary


and conclusions


as to the operational


feasibility--


the problems


encountered


with


the model


during


the research


and the


s value


in empirical


research--will


also


be drawn.














CHAPTER II


THE MELCHER


ORGANIZATIONAL


BEHAVIOR MODEL1


Introduction


The basic


model


used


in this


study


a theoretical


behavioral


systems


model


developed


Dr. Arlyn


J. Melcher


of the Kent


State


University


the model


College


is that


of Business


"behavior


Administration.


is caused


The general


identifiable


theme


factors.


model


maintains


that


"individuals


function


in structured


context


behavior


is caused,


part,


pressures


existing within


that


context


and,


part,


the personalities


individual


bring


to the


situation.


set of structural


variables


and the leadership


patterns


that


are present


are used


to define


the structured


context


an organi-


zation.


One of the basic


the determinants


objectives


of behavior


of the Melcher


institutional


model


is to identify


setting


rigorous


analytical


independence


model.

largely


treatment.


Attention


and operational


The factors,


other


been


measure


or variables,


researchers


of each


that


and theorists


directed


fac tor


are included


in the


toward


included


"have


area.


efinitional


in the


been identified

The Melcher


IThis


Systems M
Behavior


chapter


lodel,"
Models


relies


in A.
(Kent


heavily


Negandhi,
Ohio: C


on an article


Schwitter


:omparative


y Arlyn
(eds.),


Administration


J. Me cher


Organizational


sear


ch









model


"attempts


framework


that


of behavior.


to integrate the efforts

is "deliberately designed


The model'


"focus


many


to unrav


on individual


researchers"5

el specific a


behavior,


into


aspectss


lateral


and vertical,


intergroup


relations.


Structural


Variables


The structural


variables


of the model


describe


the existing


struc-


ture


of the organization.


These


factors


have


been


subdivided


into


primary


and mediation


The organization


s size,


work


flow,


spatial-


physical-temporal


factors,


work


demands,


and heuristics


make


primary


structural


variables


As the organization


moves


from what


would


be described


as a simple


organizational


type


one of increased


complexity


(movement


along


the model's


continuums


from


left


to right)


the primary


structural


variables


contribute


toward


a heightening


stress


being


exhibited


in the organization.


example,


if the


"organization


increases


in size,


the work


more


integrative,


work


demands


are more


unstable,


the spatial-physical-temporal


conditions


more


dispersed,


and heuristics


more


unprogrammed,


these


changing


factors


"exert


pres


sure


toward


the disintegration


intragroup


and intergroup


relations.


The resultant


condition


would


one of "communication


breakdown and


increased


conflict.


"Spontaneous


methods


and inter-


personal


interactions


tha t


are adequate


for coordination


and motivation


in simple


organizations


break


down


rapidly with


increased


complexity


5Ibid.


116.


71bid.


4 a a


are


2Z,.


6Ibid.


q


*


,,


r re








The disintegrating


pressures


that


develop


be reversed


mediating


variables


of formal


authority relationships,


control


systems,


information


the model.


systems


article


and their


continues


subvariables


to offer


that


examples


are


provided


of the results


increased


organization


complexity


and the manner


in which


the mediating


variables


operate


to lessen


the impact.


example


"formal


authority


relationships


are specified"12


with


the accompanying


increase


in the


number


of organizational


levels,


movement


toward


departmentation,


movement


toward


an increase


in centralized


decision making.


control


system of


the organization


undergoes


change


with


creased


complexity


in that


moves


from what


is described


as an insti-


tutional


to an individual


stem.


model


recognizes


the need


"explicit


standards,


"an evaluation


system,


. and,


a formal


system


to reward


those


meet


the standards


and apply


sanctions


against


those


do not.


Associated


with


an increase


in organization


complexity


is also


movement away


from an


in formal


communication


system


one that


formally


takes


into


account


the informational


requirements


of the organization.


The information


system


evolves


from


"a complete


network


toward


a single


linkage,


" from a


single


means


to a multiple


method


of communication


channels


being


employed,


"from


real


time


to delayed


time


transmittal,


. and,


filing


toward


current


"formal


provisions


and historical


data,


. made


sorting


for collecting and


and classifying


coding


so that


can be readily


retrieved.


A. I :4 '.


cpnraccntef


a ciimmnr


mrnAr4 at nn


riolr


a rrlr n,


f


s


n













Ii V *a~ w
iCO OJw-4r-4
.44-' m.o.n
S 'U S-u 'U 0
15-U
bOO.rfl U
* 0 ~D Cr4

-0
$4
* .50.

* S


* S C S S

* S S *~ S

* S S S S

* a S C

* S S S *

* S S S

* S S C

* C S


.) >~V 4-'
4C00
4 N 4)

C
04)
1. 5.4 0.
4.34)
*
0$..
* sow
4.3
* S S


* S S


* S-a
0
*
r4
*
cU
0
a,

'4-4 4)
4-4~U
5,-Iwo)


.-'O-I 4.3
Cd C) CU U


*r44-J 0H


V.>'
Ce-~r4

.wtt


* S S
* S S


1-4 5 4
CU
C. S S
0

400


r4LW 0r4

(flea 4~J


S~ S


* S S S S
* S S S S


* S S S S
* 5 C S S


* S S C)
* S S
4,
S S S U
04-JO
r-4Ur-4
040) bOi-44-I

'r4r4d 0)0)
ti2flcnp~c~


4~J .5
r4
5.4 0
o .rI
S. 4.3
4-iWO
~-4bO
>r-4




S S













, tm-I .tr4
Nd uS 004
S Un Z

~4J -.5-a

~ 4)
V
* C
1-4
* a 4


.5-I OrI.rI
14 4.)

Ci2uj
$4 'Cl
4-i C)
02 a 0.4

fr~ S S S


* 0 S S S

* S S S S

* a S 4 5 *


* S S S a S

* S S S S S S

* S S S S S S

* a C S S S S

* S S S S S

* S a 4 0 a S


* S S a S S

* S C S S S S S

* S S S S S S S

* S 4 S S a a


* S S S 4)

* S 5 5*1~I
S
S 5 0 4-4
*n-4 N
.~cu

S4)

C. Ct 0 $4 X 0


* S S

* S S S

* S S

* S


* S S S

* S S S


S S S S
0

0>Wr4
4~r44~t~



gip~-iz








variables


that will


be the bases


of the discussion


in the


next


section.


left


side of


the continuums


describe


simple


organizations


while


the right


side


of the continuums


represent


complex


ones.


Melcher


notes


that while


these are


extremes most


organizations


can be described


being


some


combination along


the scale


values


of the individual


variable


identified


in the model.


Leadership


Variabi


leader


ship


variab 1


which


are a part


of the mod


focus


what


the leader


does


functions,


in performing


task as


group


or organizational


environment which


leader


to a large


He performs


extent,


various


according


functions


to Melcher,


within


determined


and beyond


the short-term control


the leader


lead


ership


varia-


bles


are directed


toward


the development


a profile


which


character


the particular


leader


s approach


to his


job.


The emphasis


upon


a supervisor


relates


to hi


subordinates


superiors


higher


level


management


in the organization.


Although


a leader


largely


operates


with in


a given


structured


con-


text,


"the way in


extent


to which


which


leadership


leadership


will


functions


contribute


are carried


out determines


or further


adversely


affect


the ability


of subordinates


to be effective.


A functional


a dysfunctional


organization


situation


be altered


somewhat


important


leadership


variable


included


in the model.


"The


supervisor


for instance,


be able


to introduce


some


flexibility


into


a situation


that


rigid


and nonadaptable


to conditions.


zes








A "democratic


leadership"


on the leadership


style would


be characterized


continuum presented


in Figure


points

a "general


leadership"


style


would


cover


scale


values


and 6


auto-


cratic


"There


leader" would


probably


be represented


is considerable


scale


interaction


values


between


and 9.


structured


context and


leadership


style,


. with


the unlikely


result


"that


same


The reade


leader

r should


style w

d refer


would


appropriate


to the


ssary


for different


for full


contexts.


discussion,


definition,


operational


measure


for each


the leadership


variables


of the model.


Behavioral


Variables


model


lateral


includes


and vertical


"individual


relations,


behavior


and intergroup


patterns,


relations"


intragroup


as signifi-


cant


"dimensions


of behavior"


that


are "important


to the function


organization.


variables which


compr


ise the behavioral


patterns


an organization


are presented


in Figure


model


includes


nine


factors


of individual


behavior


that


viewed


as being


"important


dimensions" whi


are "essential


to the


function


to meeting


an organization.


standards,


They


initiative,


are "job


involvement,


self-improvement,


work goal


commitment


commit-


ment,


frustration


levels,


sense


of achievement,


absenteeism,


turnover.


Intragroup


and intergroup


relations


are also


considered


in the


model


"Some


as important


significant


dimensions


dimensions


affecting


of lateral


the organization


relations within


s operations.


among


groups


are confidence


trust,


extent


nature


of interaction


patterns,


are


8,












>~i COC >r r- -


.1I 4


* *

* *

* S *


r-l r-4 r-( v-i v-I r-4
cUcUCUOcUtU

414144434144
CD 0) U) 02 0)
000000

WA WA WA WA WA WA


* *
* a *S *


* S S *


-Istli-I


4)4 -


00)


WA i- A AW


.1-I
0

4)

'..-400

'dO)
C
~0w
>5
'-4
ufl-4.H
E

rlOO


4-)
C C
0020)


OEWO
S
00

0)0 0<0)
Cfl>$-4WA.d
~ 444-44)
I-i 4-~ 5 0 0 C)
CUUHOI.J 44
0r4 I I 4-~ 0)
CtJu-4.2 02 CDOJ
CU 'H WA $~ U)
cni-n~rx4cn<


'-I C
0) 0
4.)
f-I
CU 00
$4 r4r4
0
43
5W



Ore 00)
'H CC.24'
>0 cU
CU

0) O4-J~
OJr-Qfl
Cr000
04-4

toooo


0)
C)
It-I
O 4.)
44
44 '~1-4
LI-I
p.4 0


a-f












wc0rJ2 ala, men fr,02 Cnu2rflm
C 0 02
o w
4~j 4.3 Cu
44
0 0 '-4
CU


aS 01 it cd cU Cd CU

r4r4 Wr~~4r4r4
CUcUocUcUCdcUCd


>~kfCJ2


trccd


0003


*rdrr


* S *

* *

* S S S S


* S S S

* S S S S 5 4 S


* S S S S S S

* 5 S 4 5 S S

* S S S S S

* S S S a

* S 5 0 5

* S S S a S

* S S S 5 5


* S 5 5 S S S S

* S S S S

* S S S S S S S


* a *

* S a cr3

r4r-lr'4 CO

GJW 0) 0

CU CU Cd i-I


S
* S


.tU


I-4$4$-4 4 $


r-lr 0- r-4


r4 r r-l


0)0002


CU d r


[tUdt


nV
OP


r4 C cr3
cU~~
uca.
Sr4~
tilt
5.4.3
000)
>00
CC
ow
S.

0444.4
r400
~o0
Cr300



cr30
04
~4~J 44
omen

00 5-4 5.4


to
C
CrI

'v-lw

~
U
$4
o 0
4-4 ~.d
C 04-I
1-4 n-I Cd
4J~
'V cd $4
000
4'H'J-4

0St-I

*3)00


Ci 04

a) 0

CD

C) C

bfl.rACd
rItfl 4~i
~r4Cfl
U
4-4 Q)tJ~4
000


000

cU~0
O~) 4~i

wow
UCO
0CU0
-a-cc


0r4
00
4J$4Q)


PUU
E-4

* S S SS S -


ur


t~ h 3\


Ema


me I


la


vl


vr u!


a








cohesiveness,


group


loyalty.


Vertical


superior/subordinate


rela-


tions within


same


group


are also


important.


They


include


mutual


"trust


and confidence,


"accuracy


completeness"


of superior


requested


information,


and the


extent


"to which


subordinates


initiate


communication


upward.


The additional


behavior


variables


of "coopera-


tion,


teamwork,


loyalty,


and subordinates


' acceptance


of decisions


made


supervisors


or specialist


groups


outside


the department,


included


in the model


as key


elements


in the


proper


functioning


organization.


Dr. Melcher


states


that


"these


behavioral


dimensions


are important


since


they


affect:


The degree


of cooperation and


coordination


among


individuals


groups


that


perform specialized


tasks.


extent


that
than


permits


to which


efforts


group maintenance


spontaneity in
to be directed


functions


sonal


to task


as mediating


relations


requirements


develops


rather


conflict.


The degree


of coll


section and


exchange


current


information


(needed


in making


daily


decisions


on the


job,


and in short


term planning
the data and


and policy


those


formulation)


among


those


have


need


extent


of technical


unique,


to which


there


and profe


regular,


ssional


recurring


an exchange


training t
problems.


ideas


solve


both


a pooling
unusual,


extent


to which


organizational
individuals an


attention and


oals rather
groups."25


than


effort
toward


is directed


the self


toward


interest


A questionnaire,


which


includes


all these


behavioral


indices,


used


to develop


a "behavioral


profile"


that will


allow


for the drawing


contrasts


among


and/or within


organizations


and "showing


the changes


- --


are


can








Figures


and 3


together make


the behavior


systems model.


overall


model


assumes


tha t


generally


identical


organizational


contexts--


expressed


terms


of the structural


and leadership


variables--should


result


in similar


is equally


true


behavioral


according


patterns


to the logic


emerging.


reverse


of the model.


Melcher


of this


states


that


"the


test


of the mod


basically


is whether


one can predict


explain


causes


of behavior


organizational


setting.


summary,


the environment


in which


a person


operates--


defined


terms


of the structural


variables


and the leadership


style exerts


pressures


upon


individuals


and groups which


results


in a


predictable


and explain-


able


behavioral


pattern


emerging.


Limitations


of the Model


model


does


not


take


into


consideration


pressures


upon


behavior


as a result


of membership


in multiple


organizations,


other


than


the work


organization


for example,


which


the individual


primarily


identifies with.


In addition,


"the model


does


not


include


a set of


environmental


differences


that


exert


pressures


on an


organization.


assumption


generally


that


is that t

important


he external

in molding


environmental

organizational


pressures

behavior.


are not

Exceptions


to this


statement


do exist


but they


are


atypical


typical


instance.


Further,


"it is assumed


. that


individual


perception measures


approximate


objective


reality,


"the


model


is static


in character,


. and that


it "is


a behavior


model


an effectiveness


model.


~I~4 'no In


28.t.-i


2 9,,.~


27,,


i 7n


t ^n


-* a^ -








A qualification is


noted


regarding


this


last point:


"The


emerging


behavioral


patterns


presumably


are directly


relevant


to the effectiveness


of the organization.


Conclusion


In concluding


the article


Dr. Melcher


notes


several


benefits which


are associated


with


the model.


In an abbreviated


summary


form


they


are:


Presenting a s

cal discipline


et of variables

on precisely d


in model


form imposes


efining variables


so that


an analyti-


they


complementary


additivity


studies


is increased.


possibility


doing


controlled


studies


when


one or more


variables


are systematic


call


explored


is increased.


model


contributes


to the ability


to critically review


assess


integrate


the literature.


Permits


placing


the question


of determinants


of behavior


organizations


in a


larger


perspective.


finally,


the model


expre


ssly


identifies


the multiple


sets


of variables


that may


be influencing


behavior


thus


providing


the leverage


points


necessary


for achieving


change.


are














CHAPTER


DATA


DESCRIPTION


OF PLANT


Introduction


Description


of the data


collected


for Plant


A is presented


this


chapter.


Each


variable


and all important


sub-variables


constitut-


the major


ship,


areas


and behavioral


of primary


elements


structural,


are discussed.


mediating


structural


The reader


should


, leader-


refer


to the glossary


for a complete


definition


of each


variable.


Summary


profiles


depicting


pictorially


responses


to the various


factors


also


presented


in Appendix D


as a supplemental


to the tables.


A total


of forty


salaried


personnel


structured


into


two levels


eight work groups


or departments,


comprise


Plant


A of the research


study.


plant manager was


not


requested


to parti


cipate


in the study


although his


Figure


leadership


4 depicts


style


was


the organization


described


structure


immediate


Plant


subordinates.


One point


clarification


needs


to be made


regarding


the superior-subordinate


relationships


directly t

work group


involving work group


o the plant manager


on others.


the office


on some work matter


The supervisor


supervisor r

s and to the


of work group


reports

supervisor,


evaluated


leadership


style


of the plant


mana


ger,


but the clerks


of work


group


evaluated


the leadership


style


of the office


supervisor.


This


relation-


- -


are


..


.. .









.5-i
'-'WI

Cd,'

t


Cu
C)
5.4
0

-V


'.4
0
COW
*dt)
>'r4
$4
Wt4-4
0~0
:1
U,

4
U)


coo


0
S
C)
1-4
0
r


E


2
$4
C)
C-,


2
5-i
C)

-4




-I
Cu
S
0)
1-4
0
it


'-4
0)
C,





2
5.'
0)
C.,


0)0


2
'-I
0)
-4
C-,


.3-


5-


.


(U
S
0
$4
0


s-i
0
~L4


mr


1W~C


r
Cu
S
0)
0

~1~~


r


5'
CO

0'
To


Cu


S
T)


mn


Cu
S
C)

$4

+


5'
C
5.4
0


Cu
E
C)
s-I
0
~L40)


CO


e
(U



m -


U,
*0

$4
0-


.5


s-a
o I-
ci)


a. e
U,


$4
0 j
ci,
0-
$400
a.


s-I
o

w3$J
C. 0'
C,,


'S


s-


S-I
0
a) en.
4,-i

000~
C,
to


5-'
0
en
N
>20-
$4 $4

0
Ca


I I








Primary


Structural


Variables


of Plant A


Size,


work


flow,


spatial-physical-temporal


factors,


work demands,


and heuristics


are


the primary


structural


variables.


Table


reports


average


responses


to the primary


structural


questionnaire


items


the particular


variable


and work


group


of Plant A.


Size


The size


of the work


groups


is the total


number


of subordinates


formally


assigned


to the department


and the number


of levels


from


first


line


supervisor


to the plant


manager.


The numerical


value


obtained


from


the size


table


included


in the glossary.


levels


each


department


are under


study--the


operative


or foreman


level


(the


first


level)


and the supervisory


level


(the


second


level).


Work


groups


through


can be described


as medium size


whereas


work


groups


through


are decidedly


small


in size.


Work Flow


degree


of input-output


relationships


that


exists within and


between


the eight


work


groups


can be described


as ranging


from non-


integrated


to integrated.


A nonintegrated


work


flow


exists


where


within


same


unit


or between


each


unit


of the organization


there


relationship


between


the input-output


resources


taking


place.


other


words,


each


person


within


same


unit


and each


unit within


organization


autonomous


as far as the work


flow


is concerned.


integrated


work


flow


exists


where


outputs


become


inputs


for individuals


r2 2 .


2 .


-- a -I -.- .- t... -. S.


-.. I I











TABLE


PLANT


A AVERAGE


RESPONSE


TO PRIMARY


STRUCTURAL QUESTIONNAIRE
VARIABLE AND WORK G


Variable


Sizea

Work Flow:
Intragroup
Intergroup:
Work group 1
"2
nl n
II II 3
II II 4

6
II 1? 7
"I 8


S-P-T Factors:
Intragroup
Intergroup:
Work group 1
2
1I II 3

4
II II 5

"6
11 11 7
II II 7
"8

Work Demands

Heuristics


ITEMS


ROUP


Work Group


aThe


which


size


ears


average
in the 2


responses


are arrived


at by


using


Table


sary.









Intragroup


work


flow


Only work


group


can be classified


as somewhat


nonintegrated


whereas work groups


through


7 have


partially


integrated work


flows


existing within


their


respective


work groups


or departments.


There


exists within


work group


a lower


degree


of job


specialization,


less


interdependency

utilization of


between group


adjustments


members,


to any work


a more

flow d


extensive


disruption,


change


and a higher


degree


of job


interchangeability


between


group


members


than


that


existing


in the other


seven


work groups.


Intergroup


work


flow


important


intergroup


work


flows


that


existed


among


the various


departments


was


established


during


the initial


observation


and inter-


view


sessions


that


took


place


prior


to the actual


data


collection.


are interested


in the significant


relations


that


are


present within


the organization


that


could


contribute


to the orderly


or disjointed


flow


Plants


task

B and


requirements


a process


of the various


type


departments.


manufacturing


Plant


A (as


operation.


are


actual


production


and 3.


of the product


The degree


takes


of work


place


flow


within


integration


nd between

is fairly


work

high


groups

between


these


three


work groups


but is moderated


somewhat


the existence


departmental


storage


facilities.


This


allows


for a high


degree


of ad-


justments


to take


place


within


a specific


production


department


case


of disruption


occurring


in the previous


stage


the production


process.


Work


groups


through


are essentially


supportive


apartments.


,









important,


or the


one that


is somewhat


more


inte


rated


than


the others


is work


group


and work


group


6.4 response)


The least


inte-


grated


the three are work groups


and 3


4.7 response).


Consider-


the overall


degree


of work


flow


inte


tion


existing


between


work


groups


and 3


can be said


that


the production


process


of Plant


s commodity


is fairly


integrated.


This


is also


true


a great


extent


for the relations


tha t


exist


between


the remaining work


groups.


There


appears


a fairly


consistent


response


rate


across


all the work


groups.


exceptions


would


work


groups


and 8.


Work


group


s de


gree


of work


flow


integration


with


group


through


more


closely


integrated


with


these


four


groups


than


that


existing


between


other


groups


in the plant.


Finally,


group


can be characterized


as the


group


having


most


nonintegrated


work


flow


impact


on groups


through


(responses


ranging


from 3.


4.8).


Spatial-Physical-Temporal


Factors


extent


to which


the work


groups


in Plant


can


be characterized


as being


concentrated


or dispersed


is measured


the factors


of distance,


spatial


orientation,


physical


barriers,


time,


and noise


level.


spatial-physical-temporal


(S-P-T)


factors


for intragroup


and intergroup


that


exist


within


Plant A


were


measured.


Intragroup


s-p-V


factors


production


work


groups


(groups


through


were


somewhat


21a


-- n I r f


-----~--


'I


II


1


*








Intergroup


s-p-t


factors


Work


group


is moderately


to somewhat


dispersed


from


the three


important work


groups


for which


data


were


obtained.


This relationship


generally


holds


true


for work groups


and their


separa-


tion


from


other


groups.


Work


groups


and 8


exhibit


the highest


degree


of separation


from


those


work


groups


that


were


measured


. Work


group


shares


the 1


east


amount


separation


from work


group


somewhat


concentrated)


of all the work


groups


(Work


groups


and 8


are on the


same


floor


across


the hall


from


each


other


Work


Demands


relative


gree


of stability


in the demands


that


are


made


upon


the work


groups


as they


perform


their


jobs


can be describe


as ranging


from


stable


to unstable.


Work group


the highest


stability


in work demands


eight work


groups.


work


group


that


the least


amount


stability


-- group 4


-- with


can be


described


as having


about


half


the time


stable


e/unstable


demands.


work


groups


in Plant A


fall


the stable


side


of the work demand


measurement


continuum.


Heuristi


last


variable


to be considered


regarding


the primary


structural


variable s


of Plant


A is


heuristics


extent


that


the work


groups


tasks


are predictable


and the


extent


that


help


from


others


to solve


particular

r*hnrQ!,n^-/ nr


problem is a


vailab

4-I-tn -f


All work


nnC: na


groups


-.- n4 4f


in Plant

tflnr *


can


- n Lt j-. .


*.








Figures


summarizing


the primary


structural


variables


in a


profile


form


for all


work


groups


in Plant A appear


as part


of Appendix D.


profile


of the mediating


structural


variables


which


will


be discussed


in the


next


section,


is also


included


in Appendix


Mediating


Structural


Variables


of Plant A


major mediating


structural


variables


are formal


authority


relationships,


control


system,


and information


system.


Three


elements


comprise

and (3)


the formal


authority


departmentation.


Table


relationship:


reports


delegation;


responses


levels;


to these


questionnaire


items


but the discussion


in this


section


is in terms


the main


variable.


reader


again


should


refer


to the glossary


a full


definition


of all the main


variables


and their


sub-variables.


TABLE


PLANT


A AVERAGE


RESPONSE


TO MEDIATING


STRUCTURAL QUESTIONNAIRE ITEMS
VARIABLE AND WORK GROUP


Variable


Formal Authority:
Delegation
Levels
Departmentation

Control System

Information System:


Intragroup
Intergroup
v- S 9


Work


Group








Formal


Authority


The formal


authority relationships


that


exist within


each


of the


eight


work groups


of Plant A


can be described


as fairly


diffuse.


Work


group


the highest


extent


unsp


ecified


formal


authority relation-


ships


at 3


while work


group


at the other


extreme


with


a rela-


tively


higher


degree


specified


formal


authority


at 4.6.


Each


of the


remaining work


groups


between


these


two narrow


ranges.


Control


System


formal


system for


evaluating


performance


which


includes


stand-


ards,


measuring


penalties


instruments,


constitutes


the existing


the procedure


control


for allocating


system of


rewards-


Plant. A.


system may


range


from an


institutional


type


where


there


are no formal


specifications


established


one where


formal


individual


performance


systems


clearly


exist.


Work groups


and 8 have


a partial


control


system


formalized


regarding


employee


performance


(responses


4.7,


5.3 and


respectively).


remaining


work


groups


have


a relatively


higher


incident


of formalized


individual


performance


systems


existing within


their work


group.


Work


group


has the


most


formalized


control


system specified


of all


eight work groups


Information


in Plant


System


formal


network of


receiving


and transmitting


centers


and the


communication


relationships


that


exist


comprise


the information


system


1*' C1Q*IT mfi ~t rn


Trh Prctiltnn


ho~ Aacr~;hoA


no r3nn nt- Mrr


circtpm


Ill








Intragroup


information


system


work groups


can be characterized


as possessing


a moderate


complex intragroup


information


system.


That


within


their


respec-


tive


groups


the system is


partial rationalized


and defined


as to the


network


that


exists


for receiving


and transmitting


information.


Intergroup


information


system


The information


system


that


exists


between


the eight


work


groups


of Plant A


can


be described as


moderate


simple/complex.


response


values


depicted


in Table


for this


variable


range


across


center


of the information


system


continuum


from


to 5


Vertical


information


system


Generally


system


same


for Plant A as


pattern


was


true


exists


for the vertical


for the intergroup


system.


information


That


be described


as moderate


simple/complex with


variable


values


from


to 5.5


on the information


system continuum.


Figures


appearing


in Appendix


D pictorially


show


the similarity


that

well


exists


for all the work groups


as the other


two main mediating


-a-vis


structural


the information


variables


system as


previously


discussed.


Leadership


Dimensions


of Plant A


leadership


style


of the plant manager,


as evaluated


immediate


subordinates


(the


second


level


supervisors),


and the leader-


ship


styles


of the eight


second


level


supervisors


as they


are evaluated


can








of leadership.


These


dimensions


are:


representation,


inter-


action


, (3)


standards,


goal


emphasis


, (5)


participation,


direc-


tion,


rule


orientation,


motivation


, (9)


technical


qualification,


(10)


action orientation


, (11)


problem


skills


and (12)


personal


abiliti


In describing


arbitrary


the lead


classification


ership


scheme


styles


used


present


some


in Plant


instances.


a broad


classic


fiction


scheme


that


used


for the first


eight


leadership


dimensions


listed above


response


values


of 1.0 to 3.5,


classified


as an


example


of a "democratic"


leader


ship


style;


values


of 3


to 6.


termed a


"general


style;


responses


6.5 to 9


regarded


"autocratic"


leadership


indicators.


the four mi


tive


classification


scellaneous


scheme


leadership


as follows:


dimensions


response


he broad

values


descrip-

of 1.0


to 3.5 are


termed


examples


"low competency"


values


of 3.6


described


as "moderate


competency";


and (3)


responses


of 6.5


to 9


are described


as '"high


competency.


some


measurement


instances

continue.


the descriptions


For example


are in


an average


terms of the individual

response of 3.1 to the


three


questions


measuring


the dimension


of "standards"


could


described


terms


of the measurement


continuum ran


from


high


standard s


or in


terms


of the broad


classification


scheme


as an


example


"democratic


leadership.


This


same


approach


followed


in describing


the leadership


dimensions


of Plant


in Chapter


and Plant


in Chapter


es.


are














TABLE


PLANT A AVERAGE RESPONSE


OF NINE


SECOND


LEVEL


SUPERVISORS


TO LEADERSHIP QUESTIONNAIRE


EVALUATING


PLANT


MANAGER'S


LEADERSHIP


STYLE


BY VARIABLE


erage
sponse


Variable


Leadership


Dimensions


Representation

Interaction. .


Standards.


S a a 5


Goal


Emphasis.


a a a aa a S S S S6


Participation.


S S a a a a a a a a a 53


Direction.


Rule Orientation


Motivation


Miscellaneous


Leadership


Dimensions


Technical


Qualifications


S a S a a S 57


Action Orientation


Problem Skill


a a a a a S a a


a a a a S S


Personal


Abilities


and Orientation









included with


the eight


supervisors who


evaluated


the plant manager


since


a significant


superior-


subordinate


relationship


existed


in this


instance.


Representation


plant manager


viewed


as usually


representing


subordinates


' interests


to higher


evel


management.


He usually


acts


as the spokesman


and defender


of the


nine


supervi


sors


to hi


superiors


other


groups.


Interaction


Quite


often


lateral


integration


among


the nine


supervi


sors


encouraged


the plant


manager


He usually


tries


to meet with


supervisors


in order


to work out


some


common


work


problems


but still


encourages


mor e


lateral


interaction


between


the various


supervisors


than


with himself


Standards


Moderate


high


standards


are empha


the plant


manager


while


usually


still


allowing


the supervi


sors


some


freedom


in the estab-


lishment


of the


evel


performance.


Goal


emphasis


Somewhat


individual


goals


are emphasized


as opposed


group


, in reali


zing


complex


tion


with


stress


usually


y being


plac


upon


individual


responsibility.









Direction


General


direction


(4.2)


of his


subordinates


is followed


plant


manager.


He usually prefers


to be flexible


and somewhat


passive


when guidance


Rule


is required.


orientation


As far a

characterized


s rule


orientation


as possessing


is concerned,


a general


attitude


the plant

towards


manager

observing


can


rules,


policies,


and procedures


that


are established.


Motivation


nine


second


level


supervisors


responded


that


use of rewards


to motivate


performance


was


the usual


approach


used


the plant


manager.


Motivation


and participation


which


was


previously


discussed,


were


two dimensions


approximately


a democratic


rthest to t

leadership


h


e left

style


on the leadership


for these


continuum


two dimensions.


Technical


qualifications


plant manager'


subordinates


viewed


technical


qualifications


in the performance


of his


as rather


extensive


(7.5).


Action


orientation


A high


egree


decisiveness,


hard


work,


enthusiasm,


and responsi-


ability


toward


his job


characterizes


the plant


manager.


A value


of 8.1


regarding


this


dimension


was the highest


of all the twelve


dimensions


measured.








Personal


abilities


orientation


Regarding his


communicating and


personal


inclinations


the plant


manager


viewed


as quite


itivel


oriented


(7.1).


By way


represents


summary


a summary


the leadership


profile,


Figure


profile


the plant manager


, which


the plant


s leadership


include


mana


style


in Appendix D


From


can be describe


as "general"


with


two important


ects


-- partic


ipation


motivation


as tending


more


toward


a "democratic


" leadership


style.


He i


viewed


as b


eing highly


competent


in performing


as the plant


manager


responses


to the miscellaneous


dimensions


all fell


near


extreme


right


side of the continuum.


Second


Level


Supervisors


Leadership


Styles


Tabl


represents


average


response


the second


level


super-


visors


immediate


subordinates


to the leadership


questionnaire.


foremen and


other


salaried


personnel


of all eight work


groups


in Plant


A evaluated


along


their


same


direct


twelve


superior


leadership


as to hi


dimensions


leadership


discussed


characteristic


in the previous


section.


Representation


supervisors


of work groups


and 6


tend


to represent


their


subordinates


to higher management


slightly more


than


remaining


supervisors.


supervisor


of work


group


exhibits


the highest


tendency


toward


upward


representation


while


the supervisor


of work group


4 An S


r .I r


h r


..














TABLE


PLANT A AVERAGE


RESPONSE


OF FOREMEN AND


OTHER


SALARIED


PERSONNEL T
THEIR


O LEADERSHIP
IMMEDIATE S


QUESTIONNAIRE


SUPERIOR


EVALUATING


LEADERSHIP


STYLE


Variable


Leadership Dimensions


Representation


Interaction


Standards


Goal


Emphasis


Participation


Direction


Rule


Orientation


Motivation


Miscellaneous


Leadership


Dimensions


Technical


Action


Qualifications


Orientation


Problem Skills


Personal Abilities


Orientation


BY VARIABLE AND WORK GROUP


Work Group









Interaction


eight work groups


exhibit


a combination


of lateral


and verti-


cal interaction


in their


assessment


of the supervisor


values


grouped around


center


of the interaction


continuum


from


the lowest


to the highest


at 5.9.


Standards


supervi


sors


of work


groups


and 8


can


be describe


as establishing moderate


standards


as measures


of their


subordinates


performance


(responses


of 5


, 4.2


, 4.8


and 4.8


respectively)


supervi


sors


groups


both


demand


same


moderate


high


standard


level


of 6.7


Work


group


evaluated


their


supervisor


establishing


the highest


standards


of all


groups


Goal


emphasis


groups


with


exce


ption


group


, describe


their


super-


visor


s goal


emphasis


as a combination


group-individual,


tending


slightly


toward


individual


performances


(responses


rangi


from


Group


characterizes


their


supervisor


as employing


a combination


of emphases


tending


toward


group


as important.


Participation


supervisor


group


the only


group


leader


that


seeks


moderate


remaining


egree

seven


of partic


supervisors


ipation


from his


all employ


subordinates


fairly


extensive


participation


in arriving


at deci


sions.


are








subordinates.


The supervisor


group


shows


the highest


deviation


from


this


norm,


tending


toward


close


direction


(6.1)


Rule


orientation


In their


attitudes


toward


rule


adherence


, the supervisors


of the


first

taking


seven work

a position


procedures.


groups


are describe


requiring a

responses of


somewhat


these


their


strict


seven


subordinates


adherence


groups


as often


to formal


are narrowing,


clustered


between


and 5.


. The


exception


supervisor


scribed


as allowing


subordinates


to de


viate


from


established


in the performance


of their


jobs.


Motivation


supervisors


tend


to employ


reward


to motivate


their


subordi-


nates.


The supervisor


group


uses


rewards


as a means


to motivate


to the


greatest


extent


of all the supervi


sors


in Plant


Technical


qualifications


The supervi


sors


groups


and 7


are described


as possessing


fairly


extensive


degree


technical


qualifications.


The remaining


supervisors


are characterized


their


subordinates


as exhibiting


a rather


extensive


gree


of technical


qualifications


relevant


to their


requirements.


Action


orientation


supervisors


can be describe


as quite


active


in their


approach


to their


jobs.


Only


one supervisor was


rated


below


rating








Problem skills


Regarding


this


aspect


of leadership,


generally


can be said


that


ervi


sors


as a group


scored


lower.


sors


and 8


scored


below


while


the remaining


scored


from


to 7


Personal


abilities


and orientation


While


personnel


least


all supervi


skill


oriented


sors


wer


the supervisor


toward


evaluated


group


the positive


as being


8 was


positive


described


end of the


in their


as being


measurement


continuum.


Figures


16 through


which


appear


in Appendix


pictorially


present


the leadership


of each


of the eight


work


group


super-


visors


of Plant


A broad


description


of the leadership


style


Plant A'


second


level


supervi


sors


would


they


are all empl


a general


style


of leadership


somewhat


extensive


participation


rewards


as motivators


are the


two most


significant


actors


influenc-


their


leadership


styles


toward


the democratic


end of the continuum;


high standard


emphasis


probably


the sing


important


factor


scored


toward


the autocratic


side of the leadership


continuum;


all supervi


sors


of Plant A


can be character


as p


assessing


high


degree


competency


in carrying


out their


respective


duti


Behavioral


Profil


Plant A


In thi


the partic


section


pants


responses


of Plant A


to thirt


are reported


three


(see


behavioral


Chapter


mndi


ces


II where


indices


were


first


presented)


The indi


ces


are grouped


into


four


broad


categories


) individual


1 behavior


intraPorninn


hphd i nr


* 1nt rPrn1


es.


* A.


| I








The questionnaire


Appendix A


used


with Appendix


to measure


as the key


behavior


needed


is included


to unscramble


as part


the items


into


the four


categories


mentioned


above.


responses


of eight


second


leve


supervisors


and the


avera


responses


foremen and


other


salaried


personnel


(the


first


level)


each


of the eight work


facilitate


the general


groups


are reported


scussion


the existing


discussed.


behavior


In order


in Plant A,


three


behavioral


groupings


or types,


have


been


arbitrarily


established.


groupings


are:


response


values


of 1


to 3


are designated


"'fI


behavior;


values


of 3.6 to 6.4


are described


as "general"


behavior;


response


values


ranging


from


to 9.0


are "positive"


behavior


indicators.


Summary


behavioral


profile


gures


for the tabular


data are


also


presented


in Appendix


Supervisors


' Description


of Empi


oyees


Behavior


responding


to the behavioral


questionnaire


the supervisors


were


describing

tions. Ta


the empl


ble


of the eight


oyees


reflects


work groups


behavior


these


according


individual


of Plant A.


to their


attitudes


The di


individual


each


scussi-on


this


percep-


supervisor


section


primarily


in terms


of the three


types


of behavior


-- "negative


"general


" and "positive


-- within


the four


broad


cate


ornes


individual


, intragroup


lateral


, intragroup


vertical


and intergroup


behavior.


Tn r A.a rlab nr i







TABLE


PLANT


A RESPONSE


OF EIGHT


SECOND


LEVEL SUPERVISORS


TO BEHAVIOR


QUESTIONNAIRE


DE SCRIBING EMPLOYEE


BEHAVIOR


Variable


Individual


Behavior


Involvement


Commitment to Meeti
Initiative. .
Self-Improvement. .
Work-Goal Commitmen
Frustration Levels.
Sense of Achievemen
Absenteeism .
Turnover. .

Intragroup Behavior:


Confidence


Related


Non- Job


.ng


Standards


S S S
S S S 5 0
L t. S S
S S S S S
it. S S S S
S S S S


Lateral


and Trust. .
Communication .


Related


Cooperation
Group Unity
Interaction


Intragroup


Trust
Trust


Communication


Patterns.


Behavior:


Job

Verti


and Confidence-
and Confidence-


Requested Inf
Communication


S S S S S

cal


-Downward


-Upward


formation


Scre


Job Information
Human Relations
Cooperation and


Acceptance
Supervis
Acceptance
Manageme
Acceptance


Decisions.


Intergroup


Confidence


Communi


ca


ening


Information
Teamwork. .


of Immediate


Decisions


Level


of Higher


Deci


sions


* S S


Staff Group
. S S S S


behavior


and Trust.


tions Accurac'


S S S 5 0
V S S S a


BY VARIABLE AND WORK GROUP


Work Group


r I I I I I I


I








behavior


of their


immediate


subordinates.


These


are the employees


which


the supervisors


have


the greatest


amount


of contact with


daily.


Job involvement.


--Some


employee


involvement


in their


jobs was


described


supervisors


and 8


, placing


them


in the "negative"


behavior


grouping.


Supervisor


felt


that


considerable


involve-


ment


-- "positive"


behavior


-- was typical


of his


emplo


yees.


remaining


supervisors


' descriptions would


fall


within


the "general"


behavior


type.


Commitment


to meeting


standards


--Only


supervisor


described


employees


as sometimes


trying


to meet


or exceed


established


work


standards


(2.0


response).


Five


supervisors


felt


their


employees'


commitment


to doing


a full


days work


was "positive.


" Two


elt only


"general"


behavior


attitude


existed.


Initiative.


--Supervisors


and 7


responded


that


employees


exhibit


a relatively


low degree


of initiative,


or "negative"t


behavior


according


our grouping


scheme,


while


three


supervisors


felt


that


"positive"


behavior


regarding


this


variable


best


described


their


employees.


Three


supervisors


descriptions


Self-improvement.


would


--Only


be in the "general"'


supervisors


and 8


behavior


described


grouping.


their


employees


as "generally"''


trying


to improve


themselves.


Five


super-


visors


responses


indicate


"negative"


behavior.


No supervisors


indi-


cated


"positive"''


behavior


on the


part


of their


employees.








"negative


" grouping.


The remaining


two descriptions


are "general"


types.


Frustration


evel


--Empl


oyees


in work


groups


and 2


were


scrib


their


supervisors


as usually


y possessing


a feeling


frustration


in performing


their


jobs--


negative


behavior


according


our scheme


of classification.


A lower


degree


of frustration


perienced


in the "positive"


behavior


groups


and 7


while


remaining


four work


groups


can be typed


as "general"


behavior


Sense


of achievement


--"Negative


behavior


can


be ascrib


to work


groups


degree


and 4


of empl


regarding


oyee


this variable


satisfaction


while


out of doing


the relatively


ood job,


higher


evidenced


group s


are examples


"general"


behavior.


Only


super-


visors


and 6


felt


their


empl


oyees


behavior was


such


to allow


their


inclusion


in the "positi


ve" behavior


grouping.


Absenteeism.


--Job attendance was


felt


to have


an unstable


effect


on operations


groups


and 8


resulting


in "negati


ve" be


havi


extent


that


sometimes


absentee


sm affected


operations


as responded


supervisors


and 5


indicated


a "positive"


behavior


orientation.


responses


of supervi


sors


and 7


were


a "general"


behavior


indicator.


Turnover


--Only


the supervisor


group


felt


that


empl


oyee


con-


tinuity


usually


affected


operations


The remaining


seven


supervi


sors


expressed


the attitude


that


sometime s


or rarely


turnover


affect


S tt S I I


was


ex-


. 1 o


II


**








degree


of "negative"


orientation


on the


part


of his


emplo


yees


while


supervisor


group


responded


with


most


"positive"


indicators


individual


behavior.


Intragroup


behavior


lateral


relations


indices


comprise


the lateral


intragroup


behavior


category.


supervisors


are describing


the lateral


relations


which


they


perceive


to exist


within


their work


groups


responding


to the questionnaire


items.


Confidence


trust.


--All


ervisors


with


the exception


supervisor


expressed


"general


behavior


and supervisor


expressed


"negative"


behavior,


felt


that


members


of their work


groups


have


a high


degree


of confidence


trust


in each


other.


related


communication.


--"General"


behavior


regarding


related


discussions


can be attributed


to work


groups


and 7,


while


the remaining


seven


groups


are best


described


the supervisors


"positive"t


behavior


indicators.


Non-job


related


communications


--Low


grees


of non-job


related


discussions


describes


take


place within


groups


and 7


groups


Only


and 8.


group


"General"


exhibits


behavior


"positive"


behavior.


Cooperation


patterns.


--"Negative"


behavior


is indicated


super-


visor


for his work


group


in the


extent


of cooperation


and assistance








Group


unity


--The supervisor


group


again has


response


falling within


the "negative"


behavior


grouping.


supervisors


are of


the attitude


that


behavior


regarding


intragroup


unity


exists


while


only


one supervisor


s reply


lies


within


"general"


type


of behavior


grouping.


Interaction


the job.


--Informal


intera


actions


off the job


described


as "positive"


group


"general"


groups


and 8


"negative"''


for the remaining


five


work


groups.


Summarizing


responses


to the lateral


intragroup


behavior


ques


tions,


supervi


sor


the highest


number


of "negative" behavior


indicators


while


supervisor


most


positive"


replies


Intragroup


behavior:


vertical


relations


indices


are included


in this


category


of behavior.


The eight


supervi


sors


relations


' responses


that


exist


are their


, primarily


perceptions


between


regarding


superiors


the vertical


and subordinates,


within


their work groups.


Trust


confidence


downward


--Supervi


sors


of work


groups


all felt


that


usually


supervisors


have


trust


and confidence


subordinates


(all


responses were


and the supervisor


group


felt


that


this


almost


always was


case


response)


All


five


groups


in the


posit


ive" behavior


grouping.


Groups


and 4


possess


general"


behavior


orientation.


No supervisor


repli


in the


manner


allow


response


to be termed


"negative


" behavior.


are


are


"positive''








"negative"


behavior


aspect.


"Often"


is the situation


groups


, 5,


or "general"


in the "positive"


behavior.


oriented


groups


always"


is the situation


and 6.


Communication


screening.


--Half


the work groups


can be described


as "general"


and the other


four


as "positive"


behavior


vis-a-vis


situation


that


exists


within


the work


groups


on volunteering


job-related


information


upward


to superiors.


Job information.


--"Usually"


or "almost


always"


do subordinates


bring


problems


to the attention


is the view


of the supervisors


work


groups


and 7.


A "positive"


behavior


indicator.


remaining work


groups


can be classified


as possessing


"general"


behavior.


Human


relations


information.


--The


supervisor


of work


group


felt


that


rarely


do his


subordinates


bring


to his


attention human


relations


problems


response


of 1).


The supervisors


groups


and 8


also


a "negative"


(both responses


description


were


of their


Groups


groups


and 7


a lesser


possessed


extent


"positive"


orientation while


group 4


was


described


as "general"


behavior.


Cooperation


and teamwork.


--The


sense


of teamwork and


cooperation


between


subordinates


and superiors


within


work groups


4 and 7


scribed


as only


sometimes


existing


--a "negative"


behavior


aspect.


Three


supervisors


responded


"generally"


(each


response


was


supervisors


groups


and 6


each


respond


"positively"


(responses


of 7


raE nor 4r ,,n 1 ,


was


"almost








"very


often"


acceptance


of their


decisions


subordinates was


case


described


the supervi


sors


groups


Supervi


sors


responded


in the "general"


behavior


grouping.


Acceptance


of higher


level


management


deci


sions


--The supervisor


of work group


toward


felt


acceptance


that


of higher


group


members


management


a "negative"


decisions


while


behavior


groups


best


be described


as "positive"


behavior


oriented.


Groups


and 8 fall


within


the "general


behavior


grouping.


Acceptance


of staff


group


decisions


--This


last


variabi


in the


broad


category


of intragroup


vertical


behavior


a similar


pattern


response


to the preceding


variable


Again,


the supervisor


of work


group


describes


group


as possession


negative"


behavior


Groups


4 and


are


"positively"


oriented


while


groups


and 8


lie within


the "general"


behavior


grouping.


Summarizing


the supervisors


responses


to the vertical


intr


group


behavior


category we


find


tha t


ervi


sor


again had


the highest


number


"negative"


responses


with


supervisors


and 6


tyin


most


"positive"


responses with


ten each


Intergroup


behavior


Eight


variables


comprise


last


maj or


cate


gory


behavior.


supervi


exist


sors


are


between


expressing


their work


their


groups


attitudes


and other


-a-vi


groups


the relations


within


that


the plant.


3 .J ---~- l rt1 l I. 1- .1t t 1 **


can


t_ .


Iln


r?


"


1








characterized


as being


"negative


" behaviorally


oriented


extent


of trust and


confidence


which


exists


between


work


groups.


Communications


accuracy


--The


accuracy


and completeness


of inter-


group


communications was


described


as bein


ative"


supe


sors


"general"


and 8


, and "positive"


and 6


Communications


screening


--All


supervi


sors


felt


that


only


some-


times"


or "rarely"'


does


important


information


restrict


screened


between


work


groups.


The result


was


a unanimous


"positive


behavior


type


for the eight work


groups.


Informal


communications


--Non-job-related


scussions


were


rated


as "negative


" by


supervisors


and 8


, as "general"


supervisor


4 and


"positive


and 6.


Cooperation and


teamwork.


--Only


ervi


sor


felt


that


"positive


behavior was


exhibited


group members


regarding


the de


gree


voluntary


cooperation


and teamwork


between


various


groups.


upervi


sors


had a


"negative


attitude


response


to the


same


question


while


responded


a manner


to place


their work groups


the "general"


behavior


grouping.


Team


spirit.


--Team


spirit


exists


almost


ah1Nay s


among


the various


groups.


was


the attitude


expressed


supervi


sors


and 6


response


supervi


sors


placed


their work


groups


in the


"negative"


group


ing.


The remaining


four


groups


can be


classifi


are


. A








Acceptance


of deci


sions.


--Work groups


are described


their


supervisors


as being


"negative"


in their


acceptance


of deci


sions


made


other work groups.


Supervi


sors


and 8


express


a "positive"


behavior


indicated


their employees


and the remaining


groups


-- 4


-- are


"general


behavior


types


Interaction


patterns.


--In


responding


to thi


last


variable


in the


intergroup


behavior


category


, and the last


variabi


in the behavioral


part


of the model,


responses


were


similar


to the intragroup


lateral


behavior


question


about


interaction


job.


Five


supervi


sors


were


of the opinion


that


"rarely,


or "sometimes,"


do empl


oyees


informally


meet


aside


from company


sponsored


events.


Supervisors


groups


expressed


positive"


behavior


on the


part


of their


empl


oyees.


Only


group


8 was


described


as fitting


the "general"''


behavior


type.


summary,


the supervisor


of work


group


express


most


negati


ve" behavior


aspects while


group


was


most


"positive"


oriented


regarding


intergroup


behavior


Groups


and 8


both


had the


greatest


number


of "general


behavior


aspects


within


this


broad


category.


Figures


24 through


which


appear


in Appendix


, represent


behavioral


profiles


of the eight


second


level


ervisors


' responses


describing


their work groups.


data


from


Tabi


are plotted


provide


profiles.


Foremen


Other


Salari


sonnel


Desc


ription


Employees


' Behavior


responses


of the foremen and


other


salari


personnel


to the








TABLE


PLANT A AVERAGE


PERSONNEL
EMPLOYEE


RESPONSE


TO BEHAVIOR


BEHAVIOR


OF FOREMEN AND
QUESTIONNAIRE


OTHER


SALARIED


DESCRIBING


BY VARIABLE AND WORK GROUP


Variabi


Individual


Behavior


Involvement.


Commitment
Initiative


to Meetin


Self-Improvement


Work-Goal


Frus


tration


ense


Commitmw


Leve


Achie


Standards


nt .
ent .a .


t .


yemenl


senteeism.


Turnover

Intragroup


Confidence
Job Related
Non-Job Rel
Cooperation


Group


behavior:


Corn


ated


Pat


Lateral


Trust .
munication. .
Communication.
terns .


Unity.


Interaction


Intragroup


Trust
Trust


behavior


Job.

Verti


and Confidence-
and Confidence-


Requested


Information


Communication Sc
Job Information.
Human Relations
Cooperation and


ceptance


f In


Supervisor


eptance


n


cal


- Downw


-Upward .
. 9 .


:ree


Information. .


Teamwork
mediate


Deci


of Hi


Management
Acceptance of


Deci

Intergroup


Confidence
flrnirns a,-* n* 4* f- 4


Decis
Staff


sons.


Leve


ions.


* a


Group


sions


behavior


and Trust


I-


9.


Work Group


6.8
2.8


8.0
6.5
3.5
6.5
7.8
5.0
6.0

6.5

6.2

6.2


6.8
t C


7.5
8.0
7.5
5.0
7.5
7.0
7.5
8.0
7.5


7.5
7.0
6.0
6.0
7.5
2.0


7.5
7.5
7.5
8.0
8.0
5.5
7.0

8.0

8.0

8.0


6.0
y '


.~n~1t n4 ff l


I









Individual


behavior


involvement.


- -Work


group


was


the only


group


that


responded


"positive"


regarding


this


variable--the


remaining work groups


exhibit


a "general"


behavior


orientation.


Commitment


to mee


ting


standards.


--Group


felt


that


only


sometimes


employees


do a full


work


-- a "negative"


response


-- and


work


group


responded


in the


opposite


direction


in that


they


felt


employees


usually


do a full


day's


work


-- a "positive"


reply.


The remaining


work


groups


fell


within


the "general"


behavior


area.


Initiative.


--The


degree


of job


initiative


shown


employees was


described


as moderate


by work groups


and 8,


placing


these


groups


in "general"


behavior.


The remaining work


groups


felt the


employees


have


shown


considerable


amounts


of initiative,


thus


placing


these


groups


in the "positive"


behavior


end of the continuum.


Self-improvement.


--Two work groups


and 8)


replied


"negatively"


regarding


this


variable.


group


felt


that


considerable


attempts


at self-improvement


were


evidenced,


thus


a "positive"


position,


and the


remaining work


groups


fell


within


the "general"


behavior


descriptive


grouping.


Work-goal


commitment.


--The


typical


viewpoint


of the work


groups


that


often


empl


oyees


are willing


to chan


the work


pace


to meet


goals


(six of


the eight


groups


replied


in this


fashion).


Their


behavior


- UI ftft -r 1 1 U*S.


was


Ir


n


II


__ I 1 1


r r









Frustration


levels.


--The


feeling


of frustration


was


described


occurring


often


by work


groups


,4,


and 8,


placin


these


groups


in "general"


behavior.


On the other


hand,


work


groups


and 6


would


be in the "positive"


behavior


grouping.


group


responded


negatively.


Sense


of achievement.


--Four work


groups


felt


that


the empl


oyees


often


satisfaction


out of doing


a good


job.


This


"general"


havior was


mentioned


groups


and 7.


The remaining


four


groups


responded


i.e.


, response


values


from


to 7.6


placing


these


groups


on the right


side


of the behavior


continuum.


Absenteeism.


--The


first


three


groups


responded


"negative"


in that


they


felt


absenteeism usually


affected


the operation


of the


plant.


Four


work


groups


have


a "general"


behavior


orientation


only


one group,


regarding


this


variable,


could


be described


as "positive.


This


was work


group


with


a response


8.0.


Turnover.


--Only work


grcup


felt


that


turnover


very


often


affected


the operation


of the plant


("general"


behavior).


remain-


seven


work


groups


responded


that


sometimes


to rarely


did the


question


of employee


continuity


become


important.


Therefore,


seven


the eight


work


groups


were


"positive"


behavior


oriented


according


our classification


scheme.


Intragroup


behavior:


lateral


relations


Confidence


trust.


--Work


groups


and 7


replied


that


their work


- A i t-


* .1


and


* 4q '1


"positive,


.-. I


_Ir. r








related


communication.


--The


work


groups were


evenly


split


between


"general"


and "positive" behavior


orientation when


comes


to this variable,


the lowest


response


being


5.0 by work group


the highest


"positive"


response


of 8.0 being made


groups


4 and 8.


Non-job


related


communication.


--All


work groups


responded


"general" behavior


terms with


the exception


group


s response


value of


6.6 placing


themselves


in the "positive"


behavior


grouping.


Cooperation


patterns.


--For work


groups


4 and 8


there


exists


usual


amount


of cooperation


among


the groups'


co-workers,


placing


these

groups


response


groups


described


by group


in the "positive"


the degree


behavior


of cooperation


representing


the lowest


position.

as existing


value)


remaining


"often"


one of "very


often"


being


case


-- a "general"


behavior


reply.


Group


unity.


high


degree


of work


group member


unity


exists


six work


groups.


Groups


and 7


exhibit


a relatively


lower


degree


unity


a "general"


behavior


orientation,


than


the six other


groups


which


can be depicted


as "positive"


behavior.


Interaction


the job.


--Only


sometimes


do employees


meet


infor-


mally


the job


according


to the


responses


five


work


groups.


These


replies


place


the five


groups


in the "negative"


behavior


end of the


continuum.


Three


work


groups,


and 8,


responded


in a


"general"


behavior


orientation


while


no group


responded


a manner


to place


them


In rhofI^ *'rnnara r-r win, n r


nlnrrn; fi n









Intragroup


behavior:


vertical


relations


Trust


and confidence


downward.


--Work


groups


express


"general"


behavior


attitude


in that


they


felt


supervisors


often


have


trust


and confidence


in subordinates.


other


six work


groups


responded


a more


"positive"


behavior


attitude


vis-a-vis


this


variable.


Trust


and confidence


upward.


--The


degree


trust


confidence


shown


subordinates


in their


superiors


was


described


by work groups


and 7


in terms


a "general"


behavior


pattern.


The other


five


work groups


expressed


a higher


degree


trust


being


case.


These


groups


would


fall


within


the "positive"t


grouping.


Request


information.


--Work


group


avera


ge response


indicates


behavior


orientation


in that


they


felt


employees


only


sometimes


provided


accurate


requested


data


to supervisors.


Groups


and 7


replied


that


often


this


was


case


-- "general"


behavior


while


the remaining


five


work groups


replies would


have


to be depicted


as "positive"


behavior


indicators.


Communication


screening.


--The


extent


of intentional


withholding


distortion


of information


subordinates


is described


as existing


often


work groups


and 7.


situation


one of "sometimes"


to "rarely"


existing


as expressed


the remaining


five


work


groups


tha t


lie within


the "positive"


portion


of the behavior


continuum


1Within


work group


e category
response


y of intragroup
to this variable


behavi


or:


is the


vertical


nega


relations,


tive"


S*- 1


a "negative"


r 1 r


(1,


t


- <








information.


-- In


evaluating whether


subordinates


bring


problems


to the attention


of their


supervisors,


eight work groups


fall


within


the "positive"


behavior


area.


Human relations


information


--"General


behavior


character


work


groups


-a-vi


variable.


The subordinates


volunteering


human


relations


information


was


described


as "often"


being


case.


Coop


eration


and teamwork.


--Half


the work


groups


responded


"general" behavior way while


the remaining


four would


have


to be


placed


in the "positive"


behavior


grouping


regarding


the degree


that


cooperation


and teamwork


exists


between


supervisors


and subordinates.


Acceptance


of immediate


supe


rvisor


decisions.


--Work


group


average


response


of 6.4 places


it in the "general


behavior


grouping


while


the other


seven work


groups


respond


a manner


to allow


their


placement


in the


positive


" behavior


area.


Acceptance


of higher


level


management


decisions


--Five


work


groups


be describe


as possess


a "general"


behavior


attitude


towards


variable


while


the remaining


three


work


groups


' responses


place


them in


the "positive


" behavior


grouping.


Acceptance


of staff


group deci


ons


--Work


groups


and 7


responded


and 4.7


respectively


to thi


variable


-- a generall


behavior


attitude


-- while


the remaining work


groups


expressed


that


empi


oyees


usually


accepted


decisions


staff


groups.


Such


responses


place


these


zes


can








Intergroup


behavior


Confidence


trust.


--All


degree


of intergroup


confidence


trust


that was


described


ranged


from work


group


s "sometimes"


exist-


3.7 response)


to "almost


always"1


being


case


as expressed


work group


(8.8


response).


Following


the grouping


classification


which


we are using,


work


groups


and 7


would


be "general"


behavior while


groups


Communications


and 8 are


accuracy.


"positive"'


--Work groups


behavior


and 8


oriented.


expressed


a "positive"


behavior


group


attitude


information


regarding


exchange,


accuracy


while


and completeness


the remaining work


of inter-


groups would


classified


as "general"


behavior.


Communications


screening.


--Only


one work


group


-- group


-- expressed


other


than a


"positive"t


behavior


perception


vis-a-vis


extent


that


there


exists


related


information


restriction.


Work group


would


be classed


as "general"


behavior.


Informal


communications.


--"Negative"


behavior was


indicated


work


groups


work


groups


felt


that


often


informal


discussions


took


place


between


departments


but onl


to the


extent


to place


these


groups


in the "general"


behavior


grouping.


Cooperation


and teamwork.


--Work


group


perceived


a relatively


high


gree


cooperation


and teamwork


(7.5)


between


departments


with


remaining


groups


falling


slightly


lower


into


the "general"


behavior


area.








other


five


groups'


"general"


behavior


responses


indicate


a lower


attitude


orientation


regarding


extent


of intergroup


team


spirit.


Acceptance


of decisions.


--"Usually"


("positive"


behavior)


work


groups

best d


and 8


describes


accept


the other


other

groups


groups'


decisions.


orientation


toward


"General"


this


behavior


variable


intergroup


behavior.


Interaction


patterns.


--This


last


variable


in the


category


also


the last


of the total


behavioral


indices


that were


measured


five


ponses


in the "negative"


grouping.


The low degree


of intergroup


informal


interaction


was


expressed


groups


and 7.


Work groups


and 8 would


be in the generall"


area


of the behavior


continuum.


Figures


32 through


included


in Appendix


pictorially


portray


the behavior


patterns


of the


eight work groups


based


upon


average


responses


reported


in Table


Chapter


leadership,


VI will


describe


and behavior


in general


of Plants


terms


B and


contrasts


next


in structure,


chapter


will


describe


Plant


following


same


format


as was


used


in the


present


chapter.


res














CHAPTER


DATA


DESCRIPTION


OF PLANT


Introduction


The description


of Plant


based


upon


the data


collected


pre-


sented


in this


chapter.


Plan t


is described


terms


of the primary


structural,


mediation


structural,


leadership,


and behavioral


factors


that


existed


during


the study.


The glossary which


follows


the final


chapter


provides


necessary


definitions


and operational


measures


of the structural


and leadership


variables.


The tabular


data


are aug-


mented


summary


profiles


depicting


responses


to the various


variables.


Plant


is structured


into


six departments


or work


groups,


basically


two management


levels


-- the foremen


and the supervisory


levels.


personnel


A total


comprised


twenty-one


the research


supervisors,


study


foremen,


population.


and other


plant


salaried


manager


not


include


style was


in the study


described


as a respondent


his subordinates.


although


Figure


depicts


leadership

the organi-


zation


structure


of Plant


supervisor


of work


group


participated


in the study


responding


to the structural


and leadership


questionnaires.


Since


the study was


confined


to management


and other


salari


personnel,


description


the leadership


style


of supervisor


and his


perceptions












s-I
0
U)
04

00
04 C


'.4
0
U,
0-.
~.s-JI
s-I 00

04

U)


s-I
0
(12
04
s-I 00

04 0

Cl)


'-4
4Jw
060
CUcj

0.4 CU


o cn

$400

CO
S04 0
U)^


1.-I
0
w
04
$400

04 0

C,)


------









Primary


Structural


Variables


of Plant


Size,


work


flow,


spatial


-physical-temporal


factors


work


demands,


and heuri

described


stics


in this


comprise


section.


the primary


Table


structural

represents


variables that


average


are


responses


to the questionnaire


items


covering


primary


structural


elements


Plant


Size


Work


group


with


two levels,


is the largest


of the six depart-


ments


in the plant.


Although


it is


larger


than


the other work


groups


all six groups


can


be described


as small


in size.


Work


Flow


extent


among


of input-output


the work groups


relationships


can be described


that


terms


exist within


a continuum ranging


from non-integrated


to integrated


work


flow.


Intragroup work


flow


Work group 4


the least


work


flow


integration


of the six work


groups


response).


Its members


are moderately


unrelated


to each


other


as far as the work


flow


existing


within


their


group


is concerned.


remaining


five


groups


are best


describe


as having


partial


integra-


tjion


of work


flows within


their


respective


departments.


Intergroup


work


flow


Data


were


collected


for only


the important


intergroup


relations


* S *_


1.,l --


t n I i ... 1. i I .St '4


ml


-L-l. 1 L


1 1 rre r


1


TI


,,














TABLE


PLANT


B AVERAGE RESPONSE


TO PRIMARY


STRUCTURAL QUESTIONNAIRE


ITEMS


VARIABLE AND WORK GROUP


aThe size average responses are arrived


at by


using


Tabi


which


ears


in the e


lossary.








The degree


of work


flow


integration


is highest


between groups


and 1


-- a partially integrated


intergroup


work


flow


(7.0)


and the


work


flow


relations


between


groups


and 5


is the lowest


at 5.2 -- only


moderately


integrated.


Considering


extent


of intergroup work


flow


for all departments within


Plant


, it


can be said


that


partial


integration


of the work


flows


exists


in the plant.


Spatial-Physical-Temporal


Factors


work groups


' concentration


or dispersement were


measured


intra- and


Intragroup


intergroup


s-p-tt


relations.


factors


members


groups


and 6


are fairly


dispersed


from each


other


(responses


and 7.0 respectively).


Groups


through


best


be described


as moderately


concentrated


within


their


groups.


Intergroup


s-p-t


factors


Work


groups


and 6


are fairly


dispersed


from


the other


groups


for which


data


were


obtained.


Group


exhibits


least


total


degree


of separation


from


the other


groups.


Work


group


separation


from


group


is the highest


at 8.1,


while


the lowest


degree


of separation


is between


groups


and 3


at 3.8 -- fairly


concentrated.


Overall,


with


the exception


groups


and 4


and their


relations


with


each


other,


Plant


can


be described


as having


fairly


dispersed


departments.


Wnrk


nPmfnnd


can








Heuristics


last


variable


to be described


in the major


category


of primary


structural


come


is heuristics


of actions


-- the


or decisions.


extent


one is able


work groups


to predict


in Plant


have


out-


their


actions


or decisions


predictable


to a great


extent.


Group


greatest


degree


of predictability


(1.7)


while


Group


the least


4.0.


Figures


Table


40 through


in a profile


45 (see


for each


Appendix E)


of the work


summarize


groups.


the data


The mediation'


from

g struc-


tural


variables,


which


will


be discussed


in the


next


section,


are also


included


in Figures


40 through


Mediating


Structural


Variables


of Plant


Formal


authority


relationships


control


system,


and information


system are


the elements


of the mediating


structural


variables.


Data


obtained


for the sub-variables


of formal


authority


are reported


the discussion


is in


terms


of the main


variable.


Table


reports


average


responses


to the questionnaire


the work


groups


of Plant


Formal


Authority


formal


are largely


authority


unspecified


relationships


-- or fairly


that


exist


diffuse.


for all work


response


values


groups


ranged


from a


low of 3.5


(group


a high


of 4.1


(groups


and 5).


Control


System


formal


system


for evaluation


performance


range


from an








groups


have


a fairly well


defined


individual


control


system.


Groups


can


be characterized


as possessing


a partially


defined


system


to control


members


' performance


with


only


group


tending


toward


an institutional


system


(response


of 4.2)


where


standards,


measuring


instruments


and the allocation


of rewards-


penalties


are


less


clearly


established.


TABLE


PLANT


B AVERAGE


RESPONSE TO MEDIATING


STRUCTURAL QUESTIONNAIRE
VARIABLE AND WORK G


Variable


Formal Authority:


Delegation


Levels


Departmentation


Control


System


Information


System:


Intragroup


Intergroup


Vertical


ITEMS


ROUP


Work Group


Information


System


information


system


-- the formal


network


of receiving








Intragroup


information


system


six work groups


some


aspects


of Plant


an unrationalized


B can all

informal


be describe

intragroup


as possessing


information


system


as well


as a formal


rationalized


one.


values


ranged


across


center


of the continuum


from 4.8


to 5


Intergroup


information


system


intergroup


information


system was


describe


as a combination


simple/complex


system by


groups


through


Group


can be described


as having


a simple


information


system--


little


or no formal


methods


to handle


Vertical


intergroup


information


information.


system


vertical


system which


exists within


Plant


a combina-


tion


simple/complex


system.


Excluding


group


, all work groups


have


basically


similar


intragroup


intergroup


, and verti


information


systems.


Figures 40


through


(included


in Appendix E)


depict


the similar-


and differences


that


exist


the primary


and mediating


structural


variables


Plant


Leadership


Dimensions


of Plant


leader


ship


styles


of the plant manager


and five


second


level


supervi


upon


sors


are


responses


describe


of the


in this section.


immediate


The di


subordinates


scus


to the


sion


lead


based


ership


questionnaire


which


measures


same


twelve


dimensions


of leadership









Plant


Manager'


Leadership


Style


Table


reports


average


responses


of six supervisors


the leadership


questionnaire


directed


at evaluating


plant


manager.


The leadership


style


of the plant


manager


described


using


twelve


dimensions


of leader


ship.


Representation


six supervisors


perception


the plant


manager


that


he usually promotes


the interests


of the supervi


sors


to higher


manage-


men t.


The average


response


of 3


on the democratic


end of the


leadership


continuum.


Interaction


Generally


the plant


manager


encourages


supervisors


to meet


together


to work


common


problems


more


than


encoura


interaction


with


himself


His orientation


toward


lateral


interaction


among


supervi


sors .


Standards


Typic


ally,


the plant


manager


allows


the supervisors


to set their


performance


standards while


at the


same


time


he emphasis


need


to establish


relatively


high


standards.


supervisors


' per-


ception


that


moderately


low (a


response


of 3


standards


encouraged.


Goal


emphasis


* ~~ .1 U. 4


own


zes


are


d


A


- ?


q


r. *















TABLE


PLANT B AVERAGE


RESPONSE


OF SIX SECOND


LEVEL


SUPERVISORS


TO LEADERSHIP QUESTIONNAIRE


EVALUATING


PLANT


MANAGER


LEADERSHIP


STYLE


BY VARIABLE


Variable


Average
Response


Leadership


Dimensions


Representation.

Interaction .


Standards


Goal


U S S a S S a S S


Emphasis


Participation . .

Direction .


Orientation.


a a S a a a SS S S S S S 55


Motivation.



Miscellaneous


Leadership


Dimensions


Technical


Qualifications.


S S S a S S S S S a a 57


Action


Orientation.


Problem Skills .

Personal Abilities and Orientation. .









Participation


Usually the plant

the supervisors on job


manager

related


solicits

matters.


comments

They vi


and suggestions


ew him as


from


encouraging


open


discussion


and participation


regarding


common


problems


-- a


response


of 3.9 indicating


rather


extensive


use of participation.


Direction


plant manager


is perceived


as utilizing


general


direction


(4.0).


more


or less


allows


the supervisors


to handle


their


problems


with


only


occasional


direction and


guidance.


Rule


orientation


Generally,

to policies, pr


the plant


ocedures


manager

and rules


stresses t

but still


he necessity


allows


of adhering


for a certain


degree


of flexibility


and personal


judgment.


Motivation


Basically


the plant


manager


relies


upon


use of rewards


motivate


supervisors


instead


of the threat


of punishment.


response


but does


of 4.3 doesn


point


indicate


out the orientation


a high


toward


degree


of rewards


rewards


away


emphasis


from


punishments


Technical q


as a motivator.


qualifications


Rather


extensive


te chnical


qualifications


are possessed


plant


manager


(7.4).


His professional


training,


work


experience,


own








that


possesses


only


a moderately


high


degree


competency


Problem skill


reasoning


skill


, conceptual


ability,


innovati


veness


comprehension


of the plant manager


were


rated


the lowest


the four miscellaneous


leadership


dimensions.


responses


indicate


a moderate


competency


level.


Personal abilities


and orientation


supervisors


responded


seven


questionnaire


items


in evalu-


eating


aspect


of the plant manager


s leadership


style.


average


response


value


of 7


indicates


a positive


orientation


resulting


in a


high


competency


level.


Figure


46 (included


as a part


of Appendix E)


represents


the leader-


ship


profile


the six


of the plant manager


supervisors


reported


based


in Table


upon


average


From


responses


summary


profile,


the plant


manager'


leadership


style


can


describe


as:


"demo-


cratic"


for only


one


dimension


-- representation


a "general"


leadership


style


with a


definite


tendency


toward


the democrati


of the continuum for


the remaining


seven


dimensions


in the leadership


functions


area;


competency


viewed


as mostly


on the low


end of the "high


competency


area


with


the level


of problem


skill


described


as equating


a "moderate"


degree


competency


Supervi


sors


Leadership


Styles


c" end













TABLE


PLANT B AVERAGE RESPONSE


OF FOREMEN AND


OTHER


SALARIED


PERSONNEL


TO LEADERSHIP QUESTIONNAIRE


EVALUATING


THEIR


IMMEDIATE


SUPERIOR'S


LEADERSHIP


STYLE


BY VARIABLE AND WORK GROUP


Work Group
Variable ..
1 2a 3 4 5


Leadership


Dimensions


Representation

Interaction

Standards


Goal


Emphasis


Participation

Direction


Orientation


Motivation


Misc


ellaneous


Leader


ship


Dimensions


Technical

Action Or


Qualifications


ientation


Problem Skills


Pers


onal


Abilities


Orientation


A-











The supervisor


of work


group


was


responsible


for hourly workers


only.


Since


the study


included


management


salaried


personnel,


evaluation


of the leadership


style


supervisor


was


not possible.


discussion


in this


section


is in


terms


of the


same


twelve


leadership


dimensions.


Leadership


profiles


for the five


supervisors


included


in Appendix


Representation


supervisors


of work groups


and 5


often


have


a tendency


as spokesmen


and buffers


for higher


management


vis-


a-vis


their


subordinates


in the department.


This


is also


true


for supervisor


a lesser


degree


whereas


supervisors


are described


usually


representing


their


subordinates


to higher


management.


Interaction


subordinates


responses


to the interaction


questions


indicate


that


supervisors


through


4 emplo


a combination


of lateral/vertical


personal


interaction.


Supervisor


mor e


nearly


oriented


toward


encouraging vertical


interaction


within


his work


group


response


6.3).


Standards


Supervisor


is described


as establishing moderately


low standards


for his


group


while


the remaining


four


supervisors


are depicted


as employing and


emphasizing


moderate


standards.


cmnn fl a a


are


Ilnst









"autocratic"

superiors as


leadership


encouraging


style.


The other work groups


a combination


group


describe


their


and individual


values


ranged


across


center


of the


measurement


continuum


from


to 5


-- or a "general"


leadership


style


Participation


Supervisor


employs


rather


extensive


parti


cipation


in arriving


at a decision


remaining


ervisors


are perceived


as being


somewhat


selective


in the


extent


to which


they


allow


subordinates


participate


in the decision


process.


Direction


five


supervisors


are describe


their subordin


ates


employing


"general


direction


in exercising


their


leadership


functions.


Rule


orientation


subordinates


of each


of the five work groups


expressed


attitude


tha t


their


supervisor


at times


allowed


some


personal


judgment


flexibility


he emphasized


regarding


a stricter


adherence


following


to rules while


of the formal


at other


policies,


times


procedures


responses


as Table


11 indicates


are clustered


around


center


of the continuum


from 4.5


to 5.7


Motivation


supervisor


group


uses


reward


to motivate


subordinates


a greater


extent


than


other


supervi


sors.


rvisor


was


described


es.








4.2,


respe


actively)


or punishment


(supervisor


and 5 with


responses


of 6


and 5


as means


to motivate


their subordinates.


Technical


qualifications


Professional


training


, work


experience,


techni


cal know-how


wpre de


scribed


as very


extensive


for supervi


sors


response)


and 5


Work


group


described


their


ervisor


possessing


a moderately


high


gree


competency


while


super-


visor


was


described


subordinates


as only moderately


competent


regarding


technical


qualifications


associated


with


the leadership


function


Action o


4.4 response).


orientation


average


responses


the subordinates


of supervi


sor


to the


questions


tha t


escr


ibed


approach


to his


handling


of decisions


indicated


and emergencies


a very


work


slight passive


commitment


orientation


, enthusiasm,


This


drive


equates


"moderate


competency


evel.


remaining


four


supervi


sors


were


describe


as d


ecidedly more


active


in their


approach


(responses


ranging


from


to 8


a high


degree


competency.


Problem


skill


very


similar


response


pattern


to the previous


dimension


indicated


assessing


the problem


skill


the supervisors.


Super-


visor


was


described


as possessing


only


a moderate


degree


of reasoning,


was









Personal


abilities


The similarities


responses


continued


for this


last


dimension


describing


the supervisors


' leadership


styles


of Plant


Supervisor


is best


described


as possessing


moderate


competency,


while


remain-


supervisors


can be characterized


as having


a relatively


higher


degree


competency


in their


personal


abilities.


Figures


47 through


51 (Appendix E)


represent


the leadership


pro-


files


each


supervisor


of Plant


The profiles


depict


that


Plant


the supervisory


leadership


styles


that


exist


are:


almost


total


"general"


style


of leadership with


only


three


exce


ptions--


standards


supervisor


tends


to employ


low standards)


and participation


(supervisor


falling


on the "democratic"


end of the continuum,


goal


emphasis


supe


rvisor


on the "autocratic"


end of the leadership


continuum--and


the supervisors


possess


a high


degree


competency


in performing


thei


jobs


(the


only


general


exception


is supervisor


who was


described


as possessing


a moderate


degree


of competency).


Behavioral


Profile


of Plant


responses


to the behavioral


questionnaire


the supervisors


the foremen and


other


salaried


personnel


are


reported


and discussed


in this


section.


same


classification


scheme


followed


in the


previous


chapter


for the behavioral


section


is employed


in describing


the behavior


measured


in Plant


Behavioral


profile


figures


for the tabular


data


are included


Appendix E.








Supervisors


Description


of Employees


' Behavior


Table


reports


to the behavioral


responses


questionnaire


of the five


describing


their


supervisors

employees'


of Plant

behavior.


discussion


behavior


in this


-- "negative,


section is


" "general,


primarily


" and


terms


"positive,


of three


" within


types


the four


categories


of individual,


intragroup


lateral


, intragroup


vertical,


intergroup


Individual


behavior.


behavior


supervisors


described


their


empl


oyees


individual


behavior


by utilizing


the nine


indices which


comprise


this


category.


description


that


follows


is in


terms


of these


nine


individual


behavior


indices.


Job involvement.


--A "negative"


type


of behavior


was


indicated


supervisors


and 4.


Considerable


involvement


-- "positive"


behavior


indi


cator


-- of their


employees


was


case


as perceived


supervisors


and 7


Commitment


to meeting


standards.


--The


extent


that


employees


to meet


or exceed


established


work


standards


was


described


as "ne


tive"


in work


groups


and 2;


"general"


groups


and 5;


and "positive"


only


group 4.


Initiative


--The


degree


of initiative


was


moderate


groups


and 3


general"


behavior


type)


while


was "negative"


and highl


"positive"


I


in work


grouD p (a


response


of 81.


Cro







TABLE


PLANT


B RESPONSE


OF FIVE SECOND


LEVEL


SUPERVISORS


BEHAVIOR


QUESTIONNAIRE


DESCRIBING


EMPLOYEE


BEHAVIOR


BY VARIABLE AND WORK GROUP


Work Group
Variable
1 2 3 4 5


Individual


Behavior


Involvement


Commitment ti
Initiative.
Self-Improvei
Work-Goal Coi
Frustration


Sense


of Ach:


o Mee


stin


Standard


.* .
ment .. .
mmitment. .
Levels. .
ievement. .


Absenteeism


Turnover. .

Intragroup Behavior:


Confidence
Job Related


Non-Job


Lateral


and Trust.


Communication


Relat


Cooperation


Group


Communic


nation


Patterns.


Unity


Interaction


Intragroup


Trus
Trus
Requ


off the


Behavior:


and Confid
and Confid


ested


Job .

Vertical


ence--Downward
ence--Upward.


Information


Communications
Job Information


Human


Relations


Cooperation
Acceptance
Supervis
Acceptance
Manageme
Acceptance


Decisions.


Intergroup


Confidence


Communications


Screenii


S S S S S
ag. S S S S S


Information .


and Teamwork.
of Immediate


Decisions


of Higher


Level


sions


* S S


Staff Group
. .


Behavior


Trust.


curac


* I








"negative"


behavior


grouping.


supervisor


of work group


employees


exhibited


a "general


behavior


orientation


-a-vi


variable.


The supervisor


group


not


respond


to thi


item.


Work-goal


commitment.


--Tabl


12 indicates


that


supervisors


regard


their employees


as having


a relatively


high


egree


of "positive"


behavior


orientation


(both


supervi


sors


' responses


were


At the


other


extreme


, supervi


sors


and 2


indicated


a "negati


ve" behavior


type with


responses


of 1


respectively


Supervisor


indicated


"general"


behavior with


response


Frustration


levels


--Only


ervisor 1


indicated


"negative"


behavior,


while


supervi


sors


and 5


described


"general


supervi


sors


and 4 indicated


positive


" behavior


types.


Sense


of achievement.


--Empl


oyees


in work


groups


and 4


were


described


their


supervi


sorTS


as p


ossessing


negative


behavior


according


our scheme


of classification


(each


response


was


Work


groups


and 5 were


depicted


as "general


positive


" behaviorally


oriented


, respectively.


Absenteeism.


--Three


work


groups


-- 1


and 5


-- possess


"negative"


behavior


.e.


, job


attendance


was fe


to have


an unstable


effect


operations.


remaining


two


groups


are classified


as generall"


behavior.


Turnover


--Groups


and 2


were


epicted


types of









turnover


supervisors


sometimes


responded


affects


that


the group'


"general"


operations.


behavior was


remaining


case.


Summarizing


responses


of the five


supervisors


to the individual


behavior


questions


shows


that


supervisor


expressed


the highest


number


of "negative"


replies with


eight,


while


supervisor


had the


highest


number


of "positive"


responses with


four.


Intra


behavior:


lateral


relations


indices


comprise


this


category


of behavior.


The five


super-


visors


' responses


from Table


are discussed


within


context


these


six variables.


Confidence


trust.


--"Positive"


behavior


characterizes


groups


and 5,


while


group


was described


as possessing


"negative"'


behavior


group


"general"


behavior.


Supervisor


not respond


to this


question.


related


communication.


--Only


supervisor


responded


in the


manner


to place


group


in the "negative"


behavior


grouping with


other


replies


being


positive.


Non-job


related


communication.


--Supervisors


felt


that


their


employees


exhibit


low de


grees


of non-job


related


communication


(both


resp


onses


were


"3", placing


these


groups


in the "negative"


area).


Groups


and 4


were


characterized


as "positive"


in their


lateral


intragroup


behavior.


gyqup








Group


unity.


--"Positive" behavior was


characterized


supervisors


Only


supervisor


s attitude was


included


in the "general"


grouping.


Supervisor


respond


to thi


question.


Interaction


the job.


--Informal


interactions


the job


were


depicted


as "negative"


supervisors


Supervisor


only


respondent


to reply


in a


manner


to allow


response


to be


eluded


in the "po


sitive"


behavior


grouping -


remaining


super-


sors


described


generall


behavior.


summary,


five


of the six


variable


in the intragroup


lateral


behavior


category were


described


ative"


supe


rvisor


while


supervisor


all six


responses


in the "positive"


behavior


grouping.


Intragroup


behavior:


vertical


relations


five


supervi


sors


described


their


employees


vertical


nations


within


the work group


responding


to ten


estions


directed


at measur-


the exi


of the


sting


behavior.


ten variables


The discussion


comprisin


category


in this section


of vertical


terms


intragroup


behavior.


Trust


and confidence


downward


--The


response


of supervisor


dicates


negative


" behavior


regarding


trust


and confidence


that


supervisors


have


in subordinates.


Supervisors


respond


"positively"t


with


and 8


reply


respectively,


while


"general"


havior was


indicated


supervisors


was









Requested


information.


--Three


supervisors


and 5)


described


their work


groups


as exhibiting


"positive"''


behavior


regarding


accuracy


and completeness


of information


which


they


request


from em-


ployees.


Supervisors


and 4


indicated


"negative"''


behavior.


Communication


screening.


--Only


supervisor


4 described


his employees


as almost


always


limiting


important


upward


information


-- a "nega-


tive"


orientation.


the remaining


three


Supervisor


supervisors


not respond


indicated


to this


"positive"


item,


behavior


while


for their


work


groups.


Job information.


--Groups


and 5


were


described


as "positive


i.e.


, they


usually


bring


problems


to the attention


of the supervisor.


Supervisor


response


was


a "general"


behavior


indicator


and a "nega-


ve" reply


was


recorded


for supervisor


Human


relations


information.


--The


extent


that


subordinates


volun-


teer


useful


human


relations


information


was describe


as "positive


only


supervisor


Three


supervisors


felt


that


a "negative"


orienta-


tion


existed


within


their


work groups.


Supervisor


elected


not to


respond


to this


question.


Cooperation


and teamwork.


--The


responses


of supervisors


are in the "negative"


behavior


grouping whereas


supervisors


and 5


both


indicated


a "positive"


egree


of cooperation


and teamwork


between


supervisor


and his subordinates.








Acceptance


of higher


level


management


decisions


--Supervisors


felt


that


"'fatve


behavior was


indicated


within


their


groups


vis-a-vis
vis-a-vis


this


variable.


The remaining


supervisors


expressed


''oitv''


behavior


to be the


case


for their


groups.


Acceptance


of staff


group


decisions.


--All


supervisors were


of the


opinion


that


their


employees


exhibit


'''oitv'


behavior


in accepting


decisions


made


staff


groups.


Summarizing


the five


supervisors


responses


within


this


third


major


category


of behavior


shows


that


the orientation


is definitely


toward


"positive"''


the "positive"


responses


supervisor


replied


behavior


seventeen


in each


end of the


"negative,

instance


continuum


" and

with a


three


(twenty-seven


"general")


behavior


description;


supervisor


indicated


the highest


number


"negative"t


aspects


within


category.


Intergroup


behavior


Eight


variable s


constitute


this


last


major


cate


gory


of behavior.


responses


of the five


supervisors


reported


in Table


12 indicate


their


opinions


regarding


the intergroup


behavior


tha t


exists


between


their work groups


others


of Plant


Confidence


trust.


--Res


ponse


values


of "7" indicated


super-


visors


4 and 5


fall


within


the "positive"


behavior


grouping.


Super-


visor


felt


tha t


a "negative"''


orientation


existed


between


his work


group


and other


groups


regarding


ergroup


confidence


trust,


while


"positive''




Full Text
xml version 1.0 encoding UTF-8
REPORT xmlns http:www.fcla.edudlsmddaitss xmlns:xsi http:www.w3.org2001XMLSchema-instance xsi:schemaLocation http:www.fcla.edudlsmddaitssdaitssReport.xsd
INGEST IEID EBVWPSDDS_7ZV58R INGEST_TIME 2011-08-09T16:16:03Z PACKAGE AA00002230_00001
AGREEMENT_INFO ACCOUNT UF PROJECT UFDC
FILES



PAGE 1

9L } nfbm Wn9

PAGE 2

7KH 8VH RI D 0XOWLYDULDWH 2UJDQL]DWLRQDO %HKDYLRU 0RGHO LQ 'HVFULELQJ ,QGLYLGXDO *URXS DQG ,QWHUJURXS %HKDYLRU $ &RPSDULVRQ RI 7KUHH 0DQXIDFWXULQJ )LUPV : %\ -21 (1*/,6+ $ ',66(57$7,21 35(6(17(' 72 7+( *5$'8$7( &281&,/ 2) 7+( 81,9(56,7< 2) )/25,'$ ,1 3$57,$/ )8/),//0(17 2) 7+( 5(48,5(0(176 )25 7+( '(*5(( 2) '2&725 2) 3+,/2623+< 81,9(56,7< 2)

PAGE 3

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r f f f /HDGHUVKLS 'LPHQVLRQV RI 3ODQW $ %HKDYLRUDO 3URILOH RI 3ODQW $ ,9'$7$ '(6&5,37,21 2) 3, $ 17 % ,QWURGXFWLRQ 3ULPDU\ 6WUXFWXUDO 9DULDEOHV RI 3ODQW % 0HGLDWLQJ 6WUXFWXUDO 9DULDEOHV RI 3ODQW %f f f f /HDGHUVKLS 'LPHQVLRQV RI 3ODQW % %HKDYLRUDO 3URILOH RI 3ODQW ( 9'$7$ '(6&5,37,21 2) 3/$17 & ,QWURGXFWLRQ 3ULPDU\ 6WUXFWXUDO 9DULDEOHV RI 3ODQW & 0HGLDWLQJ 6WUXFWXUDO 9DULDEOHV RI 3ODQW & f f

PAGE 4

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rU! f Q L f f W\ L rU f ,, %HKDYLRUDO 3URILOHV RI 3ODQW $ ( 3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO /HDGHUVKLS DQG %HKDYLRUDO 3URILOHV RI 3ODQW % ) 3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO /HDGHUVKLS DQG %HKDYLRUDO 3URILOHV RI 3ODQW & 6(/(&7(' %,%/,2*5$3+< %,2*5$3+,&$/ 6.(7&+ f f f LQ

PAGE 5

/,67 2) 7$%/(6 7DEOH 3DJH @ 'HJUHH RI &RRSHUDWLRQ 2EWDLQHG IURP WKH 7KUHH 3ODQWV LQ WKH 5HVHDUFK 6WXG\ 3ODQW $ $YHUDJH 5HVSRQVH WR 3ULPDU\ 6WUXFWXUDO 4XHVWLRQn QDLUH ,WHPV E\ 9DULDEOH DQG :RUN *URXS 3ODQW $ $YHUDJH 5HVSRQVH WR 0HGLDWLQJ 6WUXFWXUDO 4XHVWLRQn QDLUH ,WHPV E\ 9DULDEOH DQG :RUN *URXS 3ODQW $ $YHUDJH 5HVSRQVH RI 1LQH 6HFRQG /HYHO 6XSHUYLVRUV WR /HDGHUVKLS 4XHVWLRQQDLUH (YDOXDWLQJ WKH 3ODQW 0DQDJHUfV /HDGHUVKLS 6W\OH E\ 9DULDEOH 3ODQW $ $YHUDJH 5HVSRQVH RI )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHO WR /HDGHUVKLS 4XHVWLRQQDLUH (YDOXDWLQJ 7KHLU ,PPHGLDWH 6XSHULRUfV /HDGHUVKLS 6W\OH E\ 9DULDEOH DQG :RUN *URXS 3ODQW $ 5HVSRQVH RI (LJKW 6HFRQG /HYHO 6XSHUYLVRUV WR %HKDYLRU 4XHVWLRQQDLUH 'HVFULELQJ (PSOR\HH %HKDYLRU E\ 9DULDEOH DQG :RUN *URXS 3ODQW $ $YHUDJH 5HVSRQVH RI )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHO WR %HKDYLRU 4XHVWLRQQDLUH 'HVFULELQJ (PSOR\HH %HKDYLRU E\ 9DULDEOH DQG :RUN *URXS 3ODQW % $YHUDJH 5HVSRQVH WR 3ULPDU\ 6WUXFWXUDO 4XHVWLRQn QDLUH ,WHPV E\ 9DULDEOH DQG :RUN *URXS 3ODQW % $YHUDJH 5HVSRQVH WR 0HGLDWLQJ 6WUXFWXUDO 4XHVWLRQn QDLUH ,WHPV E\ 9DULDEOH DQG :RUN *URXS 3ODQW % $YHUDJH 5HVSRQVH RI 6L[ 6HFRQG /HYHO 6XSHUYLVRUV WR /HDGHUVKLS 4XHVWLRQQDLUH (YDOXDWLQJ WKH 3ODQW 0DQDJHUnV /HDGHUVKLS 6W\OH E\ 9DULDEOH 3ODQW % $YHUDJH 5HVSRQVH RI )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHO WR /HDGHUVKLS 4XHVWLRQQDLUH (YDOXDWLQJ 7KHLU ,PPHGLDWH 6XSHULRUfV /HDGHUVKLS 6W\OH E\ 9DULDEOH DQG :RUN *URXS ,9

PAGE 6

7DEOH 3ODQW % 5HVSRQVH RI )LYH 6HFRQG /HYHO 6XSHUYLVRUV WR %HKDYLRU 4XHVWLRQQDLUH 'HVFULELQJ (PSOR\HH %HKDYLRU E\ 9DULDEOH DQG :RUN *URXS 3ODQW % $YHUDJH 5HVSRQVH RI )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHO WR %HKDYLRU 4XHVWLRQQDLUH 'HVFULELQJ (PSOR\HH %HKDYLRU E\ 9DULDEOH DQG :RUN *URXS 3ODQW & $YHUDJH 5HVSRQVH WR 3ULPDU\ 6WUXFWXUDO 4XHVWLRQn QDLUH ,WHPV E\ 9DULDEOH DQG :RUN *URXS 3ODQW & $YHUDJH 5HVSRQVH WR 0HGLDWLQJ 6WUXFWXUDO 4XHVWLRQn QDLUH ,WHPV E\ 9DULDEOH DQG :RUN *URXS 3ODQW & $YHUDJH 5HVSRQVH RI WKH $VVLVWDQW 3ODQW 0DQDJHU DQG )RXU 6XSHUYLVRUV WR /HDGHUVKLS 4XHVWLRQQDLUH (YDOXDWLQJ WKH 3ODQW 0DQDJHU IV /HDGHUVKLS 6W\OH E\ 9DULDEOH 3ODQW & $YHUDJH 5HVSRQVH RI 6XSHUYLVRUV DQG WR /HDGHUVKLS 4XHVWLRQQDLUH (YDOXDWLQJ WKH $VVLVWDQW 3ODQW 0DQDJHUfV /HDGHUVKLS 6W\OH E\ 9DULDEOH 3ODQW & $YHUDJH 5HVSRQVH RI )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHO WR /HDGHUVKLS 4XHVWLRQQDLUH (YDOXDWLQJ 7KHLU ,PPHGLDWH 6XSHULRUn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n LQJ 9DOXHV RQ D 6L]H 6FDOH

PAGE 7

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nV /HDGHUVKLS 3URILOH 3ODQW $ 6HFRQG /HYHO 6XSHUYLVRUnV /HDGHUVKLS 3URILOH :RUN *URXS 3ODQW $ 6HFRQG /HYHO 6XSHUYLVRUnV /HDGHUVKLS 3URILOH :RUN *URXS 3ODQW $ YL

PAGE 8

)LJXUH 3DJH 6HFRQG /HYHO 6XSHUYLVRUnV /HDGHUVKLS 3URILOH :RUN *URXS 3ODQW $ 6HFRQG /HYHO 6XSHUYLVRUfV /HDGHUVKLS 3URILOH :RUN *URXS 3ODQW $ 6HFRQG /HYHO 6XSHUYLVRUnV /HDGHUVKLS 3URILOH :RUN *URXS 3ODQW $ 6HFRQG /HYHO 6XSHUYLVRUfV /HDGHUVKLS 3URILOH :RUN *URXS 3ODQW $ 6HFRQG /HYHO 6XSHUYLVRUnV /HDGHUVKLS 3URILOH :RUN *URXS 3ODQW $ 6HFRQG /HYHO 6XSHUYLVRUnV /HDGHUVKLS 3URILOH :RUN *URXS 3ODQW $ %HKDYLRUDO 3URILOH RI (PSOR\HHV 6XSHUYLVRU 5HVSRQVH :RUN *URXS 3ODQW $ %HKDYLRUDO 3URILOH RI (PSOR\HHV 6XSHUYLVRU 5HVSRQVH :RUN *URXS 3ODQW $ r %HKDYLRUDO 3URILOH RI (PSOR\HHV 6XSHUYLVRU 5HVSRQVH :RUN *URXS 3ODQW $ %HKDYLRUDO 3URILOH RI (PSOR\HHV 6XSHUYLVRU 5HVSRQVH :RUN *URXS 3ODQW $ %HKDYLRUDO 3URILOH RI (PSOR\HHV 6XSHUYLVRU 5HVSRQVH :RUN *URXS 3ODQW $ %HKDYLRUDO 3URILOH RI (PSOR\HHV 6XSHUYLVRU 5HVSRQVH :RUN *URXS 3ODQW $ %HKDYLRUDO 3URILOH RI (PSOR\HHV 6XSHUYLVRU 5HVSRQVH :RUN *URXS 3ODQW $ %HKDYLRUDO 3URILOH RI (PSOR\HHV 6XSHUYLVRU 5HVSRQVH :RUN *URXS 3ODQW $ %HKDYLRUDO 3URILOH RI (PSOR\HHV )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHO 5HVSRQVH :RUN *URXS 3ODQW $ %HKDYLRUDO 3URILOH RI (PSOR\HHV )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHO 5HVSRQVH :RUN *URXS 3ODQW $ L 3HUVRQQHO 5HVSRQVH :RUN *URXS 3ODQW $

PAGE 9

)LJXUH %HKDYLRUDO 3URILOH RI (PSOR\HHV )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHO 5HVSRQVH :RUN *URXS 3ODQW $ %HKDYLRUDO 3URILOH RI (PSOR\HHV )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHO 5HVSRQVH :RUN *URXS 3ODQW $ %HKDYLRUDO 3URILOH RI (PSOR\HHV )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHO 5HVSRQVH :RUN *URXS 3ODQW $ %HKDYLRUDO 3URILOH RI (PSOR\HHV )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHO 5HVSRQVH :RUN *URXS 3ODQW $ %HKDYLRUDO 3URILOH RI (PSOR\HHV )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHO 5HVSRQVH :RUN *URXS 3ODQW $ 3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO 9DULDEOH 3URILOH :RUN *URXS 3ODQW % 3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO 9DULDEOH 3URILOH :RUN *URXS 3ODQW % 3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO 9DULDEOH 3URILOH :RUN *URXS 3ODQW % 3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO 9DULDEOH 3URILOH :RUN *URXS 3ODQW % 3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO 9DULDEOH 3URILOH :RUN *URXS 3ODQW % L 3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO 9DULDEOH 3URILOH :RUN *URXS 3ODQW % 3ODQW 0DQDJHUfV /HDGHUVKLS 3URILOH 3ODQW % 6HFRQG /HYHO 6XSHUYLVRUfV /HDGHUVKLS 3URILOH :RUN *URXS 3ODQ W % 6HFRQG /HYHO 6XSHUYLVRUfV /HDGHUVKLS 3URILOH :RUN *URXS 3ODQW % 6HFRQG /HYHO 6XSHUYLVRUfV /HDGHUVKLS 3URILOH :RUN *URXS 6HFRQG /HYHO 6XSHUYLVRUfV /HDGHUVKLS 3URILOH :RUN *URXS 3ODQW % 6HFRQG /HYHO 6XSHUYLVRUfV /HDGHUVKLS 3URILOH :RUN *URXS 3ODQW % %HKDYLRUDO 3URILOH RI (PSOR\HHV 6XSHUYLVRU 5HVSRQVH :RUN *URXS 3ODQW % f f f 9,

PAGE 10

)LJXUH 3DJH %HKDYLRUDO 3URILOH RI (PSOR\HHV 6XSHUYLVRU 5HVSRQVH :RUN *URXS 3ODQW % %HKDYLRUDO 3URILOH RI (PSOR\HHV 6XSHUYLVRU 5HVSRQVH :RUN *URXS 3ODQW % %HKDYLRUDO 3URILOH RI (PSOR\HHV 6XSHUYLVRU 5HVSRQVH :RUN *URXS 3ODQW % %HKDYLRUDO 3URILOH RI (PSOR\HHV 6XSHUYLVRU 5HVSRQVH :RUN *URXS 3ODQW % %HKDYLRUDO 3URILOH RI (PSOR\HHV )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHO 5HVSRQVH :RUN *URXS 3ODQW % %HKDYLRUDO 3URILOH RI (PSOR\HHV )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHO 5HVSRQVH :RUN *URXS 3ODQW % %HKDYLRUDO 3URILOH RI (PSOR\HHV )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHO 5HVSRQVH :RUN *URXS 3ODQW % %HKDYLRUDO 3URILOH RI (PSOR\HHV )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHO 5HVSRQVH :RUN *URXS 3ODQW % %HKDYLRUDO 3URILOH RI (PSOR\HHV )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHO 5HVSRQVH :RUN *URXS 3ODQW % 3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO 9DULDEOH 3URILOH :RUN *URXS 3ODQW & 3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO 9DULDEOH 3URILOH :RUN *URXS 3ODQW & 3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO 9DULDEOH 3URILOH :RUN *URXS 3ODQW & 3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO 9DULDEOH 3URILOH :RUN *URXS 3ODQW & 3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO 9DULDEOH 3URILOH :RUN *URXS 3ODQW & 4 3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO 9DULDEOH 3URILOH :RUN *URXS 3ODQW & AT 3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO 9DULDEOH 3URILOH :RUN *URXS 3ODQW & A 3ODQW 0DQDJHUV /HDGHUVKLS 3URILOH 3ODQW & $VVLVWDQW 3ODQW 0DQDJHUnV /HDGHUVKLS 3URILOH 3ODQW & L[

PAGE 11

)LJXUH 3DJH 6HFRQG /HYHO 6XSHUYLVRUnV /HDGHUVKLS 3URILOH :RUN *URXS 3ODQW & 6HFRQG /HYHO 6XSHUYLVRUnV /HDGHUVKLS 3URILOH :RUN *URXS 3ODQW & 6HFRQG /HYHO 6XSHUYLVRUnV /HDGHUVKLS 3URILOH :RUN *URXS 3ODQW & 6HFRQG /HYHO 6XSHUYLVRUnV /HDGHUVKLS 3URILOH :RUN *URXS 3ODQW & %HKDYLRUDO 3URILOH RI (PSOR\HHV $VVLVWDQW 3ODQW 0DQDJHUnV 5HVSRQVH :RUN *URXSV DQG 3ODQW & %HKDYLRUDO 3URILOH RI (PSOR\HHV 6XSHUYLVRU 5HVSRQVH :RUN *URXS 3ODQW & %HKDYLRUDO 3URILOH RI (PSOR\HHV 6XSHUYLVRU 5HVSRQVH :RUN *URXS 3ODQW & %HKDYLRUDO 3URILOH RI (PSOR\HHV 6XSHUYLVRU 5HVSRQVH :RUN *URXS 3ODQW & %HKDYLRUDO 3URILOH RI (PSOR\HHV 6XSHUYLVRU 5HVSRQVH :RUN *URXS 3ODQW & %HKDYLRUDO 3URILOH RI (PSOR\HHV )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHO 5HVSRQVH :RUN *URXS 3ODQW & %HKDYLRUDO 3URILOH RI (PSOR\HHV )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHO 5HVSRQVH :RUN *URXS 3ODQW & %HKDYLRUDO 3URILOH RI (PSOR\HHV )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHO 5HVSRQVH :RUN *URXS 3ODQW & %HKDYLRUDO 3URILOH RI (PSOR\HHV )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHO 5HVSRQVH :RUN *URXS 3ODQW & [

PAGE 12

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n LQJ IRUFHV RI VWUXFWXUDO DQG OHDGHUVKLS YDULDEOHV $ VHFRQGDU\ SXUSRVH RI WKLV VWXG\ LV WR HPSOJ\ D QHZ PXOWLYDULDWH fn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

PAGE 13

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

PAGE 14

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n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

PAGE 15

EH LQWHJUDWHG DQG FRQVLVWHQW WKURXJKRXW WKH RUJDQL]DWLRQ )RU H[DPSOH D FRPSDQ\ WKDW VHOHFWV DQG HQJDJHV LQ PDQDJHPHQW GHYHORSPHQW WUDLQLQJ WKDW HPSKDVL]HV GHPRFUDWLF SDUWLFLSDWLYH OHDGHUVKLS VW\OHV DQG WKHQ UHTXLUHV LWV PDQDJHPHQW WR RSHUDWH LQ DQ RUJDQL]DWLRQDO HQYLURQPHQW KRVWLOH WR WKLV PRGH LV DVNLQJ IRU LQHIIHFWLYHQHVV LQHIILFLHQFLHV IUXVWUDWLRQ WXUQRYHU DQG LQ JHQHUDO XQIDYRUDEOH DWWLWXGHV DQG EHn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n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

PAGE 16

7KH DLP RI WKLV H[SORUDWRU\ VWXG\ LV RQ D EURDG LQYHVWLJDWLRQ DQG XQGHUVWDQGLQJ RI EHKDYLRU WKDW LV SRVVLEO\ LQIOXHQFHG E\ D PXOWLWXGH RI IDFWRUV H[LVWLQJ ZLWKLQ WKH RUJDQL]DWLRQV 7KLV VWXG\ LV QRW FRQn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n YDULDWH V\VWHPV PRGHO WKDW SXUSRUWV WR LGHQWLI\ FHUWDLQ YDULDEOHV WKDW H[SODLQ KXPDQ EHKDYLRU ZLWKLQ WKH RUJDQL]DWLRQ 7KH XQGHUO\LQJ HPSKDVLV RI WKH PRGHO LV XSRQ FDXVH DQG HIIHFW UHODWLRQVKLSV LQ H[SODLQn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

PAGE 17

GRHV SURYLGH LQIRUPDWLRQ DV WR WKH GLUHFWLRQ RI LQIOXHQFH FHUWDLQ YDULDEOHV H[HUW RYHU EHKDYLRU )XUWKHU WKH ERG\ RI VXEVWDQWLYH WKHRU\ WKDW DFFRXQWV IRU DQG SUHGLFWV KXPDQ EHKDYLRU ZLWKLQ WKH RUJDQL]DWLRQDO FRQWH[W LV LQ LWV LQIDQF\ $OWKRXJK QXPHURXV UHVHDUFK VWXGLHV WKDW IRFXV XSRQ D OLPLWHG QXPEHU RI IDFWRUV LQIOXHQFLQJ EHKDYLRU DUH DYDLODn EOH WKH\ WHQG WR EH QDUURZ LQ WKHLU DSSURDFK 7KH UHVXOWLQJ IUDFWLRQn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n WLFLQJ PDQDJHUV ,W LV KRSHG WKDW WKLV H[SORUDWRU\ VWXG\ ZLOO FKDOOHQJH VRPH RI WKHVH JHQHUDOL]DWLRQV SURYLGH IXUWKHU LQVLJKW LQWR WKH OLPLWDn WLRQV DQG TXDOLILFDWLRQV WR VRPH RI WKH WKHRULHV VXSSRUW RWKHUV DQG UDLVH VRPH LPSRUWDQW TXHVWLRQV WKDW QHHG WR EH SXUVXHG E\ RWKHUV LQ VXEVHTXHQW VWXGLHV 6FRSH RI WKH 6WXG\ 7KUHH SURFHVV W\SH PDQXIDFWXULQJ SODQWV JHRJUDSKLFDOO\ GLVSHUVHG ZHUH VWXGLHG $OO WKUHH SODQWV DUH D SDUW RI WKH VDPH FRUSRUDWLRQ 7KH LGHQWLW\ RI WKH FRUSRUDWLRQ JUDQWLQJ DFFHSWDQFH IRU WKH UHVHDUFK VWXG\ ZKHUHE\ WKH PRGHO FRXOG EH XVHG LV QRW LPSRUWDQW WR WKH UHVXOWV RI WKLV UHVHDUFK 7KHUHIRUH WR SUHVHUYH DQRQ\PLW\ WKH QDPHV RI WKH WKUHH SODQWV SODQW PDQDJHUV VXSHUYLVRUV IRUHPHQ DQG RWKHU VDODULHG

PAGE 18

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n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

PAGE 19

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n VKLS FRPSDULVRQV ZLOO EH GHVFULEHG DV ZHOO DV WKH LQWHUSODQW FRQWUDVWV LQ OHDGHUVKLS 7KH GHSDUWPHQW VXSHUYLVRUV SHUFHSWLRQ RI EHKDYLRU DQG WKHLU VXERUn GLQDWHVr SHUFHSWLRQ ZDV PHDVXUHG IRU HDFK SODQW DQG LQ WXUQ FRQWUDVWV

PAGE 20

ZHUH GUDZQ EHWZHHQ WKH WKUHH SODQWV RQ VLJQLILFDQW EHKDYLRU FKDUDFWHULVn WLFV )LJXUH GHSLFWV WKH UHVHDUFK GHVLJQ WKDW ZDV IROORZHG LQ WKLV VWXG\ )LJ 5HVHDUFK 'HVLJQ 9DULDEOH 3ODQW /HYHO 3ULPDU\ DQG PHGLDWLQJ VWUXFWXUDO /HDGHUVKLS ,QGLYLGXDO LQWUDJURXS LQWHUJURXS EHKDYLRU /HYHO 3ULPDU\ DQG PHGLDWLQJ VWUXFWXUDO /HDGHUVKLS ,QGLYLGXDO LQWUDJURXS LQWHUJURXS EHKDYLRU 3ODQW $ 3ODQW % DQG 3ODQW & DQG DQG 6WUXFWXUDO IHDWXUHV RI WKH SODQW 3URILOH RI WKH SODQW PDQDJHU DQG VXSHUn YLVRUV EDVHG XSRQ LPPHGLDWH VXERUGLn QDWHV n HYDOXDWLRQ 0HDVXUHV RI DOO PDQDJHPHQW DQG VDODULHG SHUVRQQHO 6WUXFWXUDO IHDWXUHV RI HDFK GHSDUWPHQW 3URILOHV RI WKH GHSDUWPHQW VXSHUYLVRUV EDVHG XSRQ LPPHGLDWH VXERUGLQDWHVn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f VWXGLHV

PAGE 21

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n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

PAGE 22

RQ EHKDYLRU FDQ SODFH WKH PDQDJHU LQ D SV\FKRORJLFDO IUDPH RI PLQG FRQGXFLYH WR PRUH HIIHFWLYH SUREOHP VHDUFK LQWR DUHDV QRZ ODUJHO\ XQn UHFRJQL]HG DQGRU LJQRUHG DQG KRSHIXOO\ D EHWWHU VROXWLRQ 7KH WLPH KDV DUULYHG ZKHUH ZH PXVW QRZ PRYH EH\RQG WKH QDUURZQHVV RI VRPH RI WKH RUJDQL]DWLRQDO EHKDYLRU VWXGLHV DQG EURDGHQ WKH VFRSH DQG QHFHVVDULO\ WKH FRPSOH[LWLHV RI RXU VXEVHTXHQW UHVHDUFK 0DQ\ SUDFWLFLQJ PDQDJHUV DUH PRUH FRQFHUQHG ZLWK LQVXIILFLHQW H[SODQDWLRQ RI KXPDQ EHKDYLRU LQ RUJDQL]DWLRQV WKDQ WKH\ DUH ZLWK WKH LQFUHDVHG FRPn SOH[LW\ DVVRFLDWHG ZLWK D PRUH HQFRPSDVVLQJ DSSURDFK :KLOH LW LV WUXH WKDW VRPH PDQDJHUV DUH VHHNLQJ QHZ DQVZHUV WR WKHLU SHRSOH SUREOHPV LW LV DOVR HTXDOO\ WUXH DQG SUREDEO\ WR D JUHDWHU H[WHQW RWKHU SUDFn WLFLQJ PDQDJHUV DUH DODUPLQJO\ P\RSLF LQ WKHLU DSSURDFKHV WR RSHUDWLRQDO SUREOHPV )RU H[DPSOH FRQVLGHU DQ RUJDQL]DWLRQ WKDW ILQGV LWVHOI ZLWK DQ H[WUDRUGLQDULO\ KLJK DEVHQWHHLVP UDWH 7ZR W\SLFDOO\ H[SUHVVHG UHDVRQV IRU WKHLU DEVHQWHHLVP SUREOHPV LV WKDW WKH HPSOR\HHV DUH DW IDXOW D VHOHFWLRQ IURP D QXPEHU RI GHPHDQLQJ VWDWHPHQWV DERXW WKHLU HPSOR\HHV XVXDOO\ IROORZVf RU WKDW RQH KDV WR H[SHFW LW EHFDXVH RI WKH MRE PHDQLQJ WKH FRQWHQW RU QDWXUH RI WKH WDVNf 2Q WKH RWKHU KDQG LI WKH PDQDJHUV DUH DZDUH RI DQG XQGHUVWDQG WKH YDULHW\ RI IDFWRUV WKDW PD\ H[SODLQ WKHLU DEVHQWHHLVP SUREOHPV WKH\ PLJKW EH PRUH LQFOLQHG WR FHQWHU WKHLU DWWHQWLRQV RQ WUXH SUREOHP VROXWLRQ DQG QRW HQJDJH LQ V\PSWRPDWLF DFWLRQV RU QR DFWLRQV DW DOO $ V\VWHPV PRGHO FDQ DLG PDQDJHUV LQ SURYLGLQJ IRU DQ LQFUHDVH LQ WKH NQRZOHGJH DQG XQGHUVWDQGLQJ RI WKH PXOWLSOH IDFWRUV ZKLFK LQIOXHQFH EHKDYLRU 6XFK DQ RULHQWDWLRQ RQ WKH SDUW RI LWV PDQDJHUV DQG VXSHUn YLVRUV ZLOO UHVXOW LQ JDLQV EHLQJ PDGH LQ HIIHFWLYHQHVV DQG HIILFLHQF\ IRU WKH HQWLUH RUJDQL]DWLRQ 7KHVH DUH ZRUWKZKLOH JRDOV WR SXUVXH E\ DOO W\SHV RI RUJDQL]DWLRQV

PAGE 23

$OWKRXJK WKH VWXG\ KDV VHYHUDO VSHFLILF REMHFWLYHV WRZDUG ZKLFK WKH PDMRULW\ RI DWWHQWLRQ LV GLUHFWHG WKH DXWKRU ZRXOG LQGHHG EH UHPLVV LI WKH XQGHUO\LQJ LPSRUWDQFH RI WKH VWXG\ ZHUH QRW QRWHG 0HWKRGV RI 'DWD *DWKHULQJ DQG 0HDVXUHPHQW )DPLOLDUL]DWLRQ ZLWK WKH FRUSRUDWLRQ WKH SODQWV DQG WKH PDQXIDFn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f 7KH VHFRQG ZDV SHUVRQDO LQWHUYLHZV 'XULQJ WKH HDUO\ VWDJHV RI WKH UHVHDUFK WKH XQn VWUXFWXUHG LQWHUYLHZV WKDW ZHUH FRQGXFWHG FRYHUHG D EURDG UDQJH RI DUHDV DQG SUREOHPV ZLWKLQ WKH SODQW DQG FRUSRUDWLRQ /DWHU WKH LQWHUn YLHZV WKDW IROORZHG ZHUH PRUH VWUXFWXUHG DQG VSHFLILF 7KURXJK WKH LQWHUYLHZV LW ZDV GHWHUPLQHG WKDW UHIHUHQFH WR ffZRUN JURXSVf ZDV SUREDEO\ D FOHDUHU GHVLJQDWLRQ WKDQ UHIHUHQFH WR GHSDUWPHQWV 7KH SUHFLVH GHILQLWLRQ RI WKH YDULRXV ZRUN JURXSVf XQGHU VWXG\ EHFRPHV FULWLFDO ZLWKLQ WKH FRQWH[W RI WKH PRGHO 7KHUHIRUH DWWHQWLRQ PXVW EH GLUHFWHG WRZDUG WKH DVVXUDQFH WKDW WKH UHVSRQGHQWV XQGHUVWDQG ZKDW WKH YDULRXV ZRUN JURXSV DUH DQG WKH SDUWLFXODU ZRUN JURXS ZLWK ZKLFK WKH\ LGHQWLILHG :LWKLQ WKH RSHUDWLRQDO FRQWH[W RI WKH WKHRUHWLFDO EHKDYLRUDO PRGHO TXHVWLRQQDLUHV KDG EHHQ GHYHORSHG E\ 'U 0HOFKHU WR PHDVXUH EHKDYLRU

PAGE 24

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n VSRQGHQWV ZRXOG UHDFW WR WKHVH KHDGLQJV DQG JHQHUDO JURXSV RI TXHVWLRQV LQVWHDG RI UHVSRQGLQJ WR WKH FRQWHQW RI HDFK TXHVWLRQ $Q H[DPSOH RI WKH EHKDYLRU TXHVWLRQQDLUH DSSHDUV DV D SDUW RI $SSHQGL[ $ DQG $SSHQGL & SURYLGHV D NH\ WR WKH EHKDYLRUDO TXHVWLRQQDLUH ZLWK KHDGLQJV DGGHG DQG QRQUDQGRPL]HG 7KH EDVLV IRU WKH GHYHORSPHQW RI WKH OHDGHUVKLS TXHVWLRQQDLUH ZDV 'U 0HOFKHUnV /HDGHUVKLS 3URILOH ZKLFK SXUSRUWHG WR PHDVXUH WKH OHDGHUVKLS GLPHQVLRQV RI UHSUHVHQWDWLRQ LQWHUDFWLRQ VWDQGDUGV JRDO HPSKDVLV SDUWLFLSDWLRQ GLUHFWLRQ UXOH RULHQWDWLRQ DQG PRWLYDWLRQ ,Q DGGLWLRQ PLVFHOODQHRXV OHDGHUVKLS GLPHQVLRQV RI WHFKQLFDO TXDOLILn FDWLRQV DFWLRQ RULHQWDWLRQ SUREOHP VNLOOV DQG SHUVRQDO DELOLWLHV ZHUH LQFOXGHG VHH WKH JORVVDU\ IRU WKH RSHUDWLRQDO GHILQLWLRQV RI WKH OHDGHUVKLS YDULDEOHVf 7KH RULJLQDO LQVWUXPHQW FRQWDLQHG IRUW\WKUHH TXHVWLRQV ZLWK WKH ODVW EHLQJ DQ RSHQHQGHG TXHVWLRQ UHTXHVWLQJ WKH UHVSRQGHQW WR OLVW DQ\ IDFWRUV KH IHOW PLJKW KDYH EHHQ RPLWWHG LQ GHn VFULELQJ WKH OHDGHUVKLS GLPHQVLRQ $ PRGLILHG TXHVWLRQQDLUH ZDV GHYHORSHG WR PHDVXUH WKH VDPH GLPHQn VLRQV RI OHDGHUVKLS EXW KDG WKH PLVFHOODQHRXV OHDGHUVKLS TXHVWLRQV

PAGE 25

DSSHDU DV VHSDUDWH QXPEHUHG TXHVWLRQV DQG WKH RSHQHQGHG TXHVWLRQ ZDV RPLWWHG 7KH PRGLILHG TXHVWLRQQDLUH FRQVLVWHG RI VL[W\VL[ TXHVWLRQV ZKLFK ZHUH ZRUGHG WR ILW WKH UHVHDUFK VWXG\ 7KH GHVFULSWLYH KHDGLQJV RI WKH RULJLQDO TXHVWLRQQDLUH ZHUH HOLPLQDWHG DQG WKH RUGHU RI WKH TXHVWLRQ ZDV UDQGRPL]HG $Q H[DPSOH RI WKH OHDGHUVKLS TXHVWLRQQDLUH DSSHDUV DV D SDUW RI $SSHQGL[ $ DQG D NH\ WR WKH OHDGHUVKLS TXHVWLRQn QDLUH ZLWK KHDGLQJV DQG QRQUDQGRPL]HG DUUDQJHPHQW LV SURYLGHG LQ $SSHQGL[ % 7KH PRGHO SURYLGHG IRU SHUVRQDO REVHUYDWLRQ DQG LQWHUYLHZLQJ RI NH\ SHUVRQQHO ZLWK TXHVWLRQV EDVHG RQ WKH YDULDEOHV LGHQWLILHG E\ WKH PRGHO WR EH XWLOL]HG WR PHDVXUH WKH VWUXFWXUDO HOHPHQWV WKDW SXUSRUW WR LQIOXHQFH DQG GHWHUPLQH EHKDYLRU VHH WKH JORVVDU\ IRU WKH GHILQLWLRQ DQG GLVFXVVLRQ RI WKH YDULDEOHVf 7KLV PHWKRG ZDV FRQVLGHUHG WR EH VXSHULRU LQ REWDLQLQJ WKH VWUXFWXUDO LQGLFHV VLQFH D FRQVLGHUDEOH QXPEHU RI H[SODQDWLRQV GHILQLWLRQV DQG H[DPSOHV ZHUH QHFHVVDU\ WR DVVXUH WKDW WKH UHVSRQGHQW XQGHUVWRRG WKH TXHVWLRQ ,W ZDV GHFLGHG WKDW WKH UHOLDELOLW\ DQG YDOLGLW\ RI WKH VWUXFWXUDO GDWD ZRXOG EH LQFUHDVHG E\ WKH XVH RI D FRPELQDWLRQ RI SHUVRQDO LQWHUn YLHZV REVHUYDWLRQ DQG D TXHVWLRQQDLUH $ TXHVWLRQQDLUH EDVHG XSRQ WKH RSHUDWLRQDO GHILQLWLRQV RI WKH VWUXFWXUDO YDULDEOHV ZDV GHYHORSHG FRQWDLQLQJ ILIW\WKUHH TXHVWLRQV VHH $SSHQGL[ $f 8QOLNH WKH OHDGHUVKLS DQG EHKDYLRUDO TXHVWLRQQDLUHV ZKLFK FDOOHG IRU WKH UHVSRQGHQWnV RZQ SHUn VRQDO SHUFHSWLRQV WKH VWUXFWXUDO TXHVWLRQQDLUH WKDW ZDV GHYHORSHG DVNHG IRU IDFWV WKDW ZHUH QRQSHUVRQDO E\ QDWXUH 7KHUHIRUH QR DWWHPSW ZDV PDGH WR UHGXFH DQ\ SRVVLEOH UHVSRQVHVHW RU KDOR HIIHFW VLQFH LW ZDV EHOLHYHG QRW WR H[LVW LQ WKLV LQVWDQFH

PAGE 26

$W WKH WLPH WKDW WKLV VWXG\ ZDV XQGHUWDNHQ D SHUVRQDOLW\ TXHVWLRQn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n LQJ WKH VWXG\ ZKDW WKH VWXG\ ZDV IRU DQG EULHIO\ LWV LPSRUWDQFH 7KH\ ZHUH UHTXHVWHG WR DWWHQG D PHHWLQJ GXULQJ QRUPDO ZRUNLQJ WLPH WR OHDUQ PRUH RI WKH VWXG\ 7KH UHVHDUFKHU GXULQJ WKLV PHHWLQJ UHDG DORXG WKH PHPRUDQGXP WKDW DSSHDUV DV D SDUW RI WKH UHVHDUFK TXHVWLRQQDLUH LQ $SSHQGL[ $ 7KH IDFW WKDW WKH VWXG\ ZDV WKH UHVHDUFKHUnV DORQH DQG QRW D FRPSDQ\ XQGHUWDNLQJ ZDV VWUHVVHG 7KH FRQILGHQWLDOLW\ RI WKH VWXG\ DQG WKH GHVLUH IRU IXOO YROXQWDU\ FRRSHUDWLRQ ZDV UHSHDWHG VHYHUDO WLPHV GXULQJ WKH PHHWLQJ $Q RUJDQL]DWLRQDO FKDUW GHSLFWLQJ WKH YDULRXV ZRUN JURXSV UHIHUUHG WR LQ WKH TXHVWLRQQDLUH ZDV GUDZQ RQ D EODFNERDUG 7KLV ZDV YLHZHG DV EHLQJ D VDIHJXDUG DJDLQVW DQ\ SRVVLEOH PLVXQGHUn VWDQGLQJ RQ WKH SDUW RI WKH SDUWLFLSDQWV DV WR ZKDW ZRUN JURXS WKH\ EHORQJHG $V D IXUWKHU FKHFN WKH SDUWLFLSDQWV ZHUH HDFK JLYHQ D FRGH

PAGE 27

QXPEHU IRU WKH H[FOXVLYH XVH RI WKH UHVHDUFKHUf DQG WKH ZRUN JURXS ZDV ZULWWHQ RQ WKHLU LQGLYLGXDO TXHVWLRQQDLUH (DFK SDUWLFLSDQW ZDV JLYHQ D SODLQ HQYHORSH DQG LQVWUXFWHG WR SODFH KLV FRPSOHWHG TXHVWLRQn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n KDYLRU LV IXOO\ GHYHORSHG DQG WKHLU LPSRUWDQFH WR WKH RUJDQL]DWLRQ DUH QRWHG 7KH SULPDU\ DQG VHFRQGDU\ VWUXFWXUDO YDULDEOHV DORQJ ZLWK OHDGHUn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n KDYLRU H[KLELWHG LQ HDFK SODQW ZLOO EH GHVFULEHG DORQJ LQWUDDQG LQWHUn GHSDUWPHQWDO OLQHV VHH )LJXUH SDJH IRU D GLDJUDPDWLFDO SUHVHQWDn WLRQ WKDW VXPPDUL]HV WKH FRQWHQW RI &KDSWHUV ,,, ,9 DQG 9f

PAGE 28

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nV YDOXH LQ HPSLULFDO UHVHDUFKZLOO DOVR EH GUDZQ

PAGE 29

&+$37(5 ,, 7+( 0(/&+(5 25*$1,=$7,21$/ %(+$9,25 02'(/ ,QWURGXFWLRQ 7KH EDVLF PRGHO XVHG LQ WKLV VWXG\ LV D WKHRUHWLFDO EHKDYLRUDO V\VWHPV PRGHO GHYHORSHG E\ 'U $UO\Q 0HOFKHU RI WKH .HQW 6WDWH 8QLYHUVLW\ &ROOHJH RI %XVLQHVV $GPLQLVWUDWLRQ 7KH JHQHUDO WKHPH RI WKH PRGHO LV WKDW ffEHKDYLRU LV FDXVHG E\ LGHQWLILDEOH IDFWRUVf 7KH PRGHO PDLQWDLQV WKDW ffLQGLYLGXDOV IXQFWLRQ LQ VWUXFWXUHG FRQWH[W DQG EHKDYLRU LV FDXVHG LQ SDUW E\ WKH SUHVVXUHV H[LVWLQJ ZLWKLQ WKDW FRQWH[W DQG LQ SDUW E\ WKH SHUVRQDOLWLHV LQGLYLGXDOV EULQJ WR WKH R VLWXDWLRQn 7KH VHW RI VWUXFWXUDO YDULDEOHV DQG WKH OHDGHUVKLS SDWWHUQV WKDW DUH SUHVHQW DUH XVHG WR GHILQH WKH VWUXFWXUHG FRQWH[W RI DQ RUJDQLn ]DWLRQ 2QH RI WKH EDVLF REMHFWLYHV RI WKH 0HOFKHU PRGHO LV WR LGHQWLI\ WKH GHWHUPLQDQWV RI EHKDYLRU LQ DQ\ LQVWLWXWLRQDO VHWWLQJ E\ ULJRURXV DQDO\WLFDO WUHDWPHQW $WWHQWLRQ KDV EHHQ GLUHFWHG WRZDUG GHILQLWLRQDO LQGHSHQGHQFH DQG RSHUDWLRQDO PHDVXUH RI HDFK IDFWRU LQFOXGHG LQ WKH PRGHO 7KH IDFWRUV RU YDULDEOHV WKDW DUH LQFOXGHG ffKDYH EHHQ LGHQWLILHG ODUJHO\ E\ RWKHU UHVHDUFKHUV DQG WKHRULVWV LQ WKH DUHDA 7KH 0HOFKHU 7KLV FKDSWHU UHOLHV KHDYLO\ RQ DQ DUWLFOH E\ $UO\Q 0HOFKHU f$ 6\VWHPV 0RGHO LQ $ 1HJDQGKL DQG 6FKZLWWHU HGVf 2UJDQL]DWLRQDO %HKDYLRU 0RGHOV .HQW 2KLR &RPSDUDWLYH $GPLQLVWUDWLRQ 5HVHDUFK ,QVWLWXWH RI WKH %XUHDX RI (FRQRPLF DQG %XVLQHVV 5HVHDUFK .HQW 6WDWH 8QLYHUVLW\ f ,ELG S ,ELG ,ELG S

PAGE 30

PRGHO DWWHPSWV WR LQWHJUDWH WKH HIIRUWV RI PDQ\ UHVHDUFKHUVA LQWR D IUDPHZRUN WKDW LV GHOLEHUDWHO\ GHVLJQHG WR XQUDYHO VSHFLILF DVSHFWV RI EHKDYLRUA 7KH PRGHOr V IRFXV LV RQ LQGLYLGXDO EHKDYLRU ODWHUDO DQG YHUWLFDO DQG LQWHUJURXS UHODWLRQV 6WUXFWXUDO 9DULDEOHV 7KH VWUXFWXUDO YDULDEOHV RI WKH PRGHO GHVFULEH WKH H[LVWLQJ VWUXFn WXUH RI WKH RUJDQL]DWLRQ 7KHVH IDFWRUV KDYH EHHQ VXEGLYLGHG LQWR SULPDU\ DQG PHGLDWLQJ 7KH RUJDQL]DWLRQIV VL]H ZRUN IORZ VSDWLDO SK\VLFDO WHPSRUDO IDFWRUV ZRUN GHPDQGV DQG KHXULVWLFV PDNH XS WKH SULPDU\ VWUXFWXUDO YDULDEOHVA $V WKH RUJDQL]DWLRQ PRYHV IURP ZKDW ZRXOG EH GHVFULEHG DV D VLPSOH RUJDQL]DWLRQDO W\SH WR RQH RI LQFUHDVHG FRPSOH[LW\ PRYHPHQW DORQJ WKH PRGHOIV FRQWLQXXPV IURP OHIW WR ULJKWf WKH SULPDU\ VWUXFWXUDO YDULDEOHV FRQWULEXWH WRZDUG D KHLJKWHQLQJ RI VWUHVV EHLQJ H[KLELWHG LQ WKH RUJDQL]DWLRQ )RU H[DPSOH LI WKH RUJDQL]DWLRQ LQFUHDVHV LQ V}]H WKH ZRUN LV PRUH LQWHJUDWLYH ZRUN GHPDQGV DUH PRUH XQVWDEOH WKH VSDWLDOSK\VLFDOWHPSRUDO FRQGLWLRQV DUH PRUH GLVSHUVHG DQG KHXULVWLFV PRUH XQSURJUDPPHG WKHVH FKDQJLQJ IDFWRUV H[HUW SUHVVXUH WRZDUG WKH GLVLQWHJUDWLRQ RI LQWUDJURXS DQG LQWHUJURXS UHODWLRQV7KH UHVXOWDQW FRQGLWLRQ ZRXOG EH RQH RI FRPPXQLFDWLRQ EUHDNGRZQ DQG LQFUHDVHG FRQIOLFWA 6SRQWDQHRXV PHWKRGV DQG LQWHUn SHUVRQDO LQWHUDFWLRQV WKDW DUH DGHTXDWH IRU FRRUGLQDWLRQ DQG PRWLYDWLRQ b LQ VLPSOH RUJDQL]DWLRQV EUHDN GRZQ UDSLGO\ ZLWK LQFUHDVHG FRPSOH[LW\ ,ELG S ,ELG S ,ELG A7KH UHDGHU VKRXOG UHIHU WR WKH JORVVDU\ IRU D IXOO GHILQLWLRQ GLVFXVVLRQ DQG WKH RSHUDWLRQDO PHDVXUHV RI DOO VWUXFWXUDO DQG OHDGHUn VKLS YDULDEOHV DQG VXEYDULDEOHV 0HOFKHU S LELG ,ELG

PAGE 31

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n FUHDVHG FRPSOH[LW\ LQ WKDW LW PRYHV IURP ZKDW LV GHVFULEHG DV DQ LQVWLn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n WXUDO YDULDEOHV WKDW KDYH EHHQ GLVFXVVHG DORQJ ZLWK WKH OHDGHUVKLS ,ELG 3 / ,ELG S ,ELG

PAGE 32

? ,35,0$5< 6758&785$/ 9$5,$%/(6 0($685(0(17 &217,1880 $6L]H 6PDOO m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

PAGE 33

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

PAGE 34

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n EOHV DUH GLUHFWHG WRZDUG WKH GHYHORSPHQW RI D SURILOH ZKLFK FKDUDFWHUL]HV WKH SDUWLFXODU OHDGHUIV DSSURDFK WR KLV MRE 7KH HPSKDVLV LV XSRQ KRZ D VXSHUYLVRU UHODWHV WR KLV VXERUGLQDWHV KLV VXSHULRUV DQG KLJKHU OHYHO PDQDJHPHQW LQ WKH RUJDQL]DWLRQ $OWKRXJK D OHDGHU ODUJHO\ RSHUDWHV ZLWKLQ D JLYHQ VWUXFWXUHG FRQn WH[W IWKH ZD\ LQ ZKLFK OHDGHUVKLS IXQFWLRQV DUH FDUULHG RXW GHWHUPLQHV WKH H[WHQW WR ZKLFK OHDGHUVKLS ZLOO FRQWULEXWH WR RU IXUWKHU DGYHUVHO\ DIIHFW WKH DELOLW\ RI VXERUGLQDWHV WR EH HIIHFWLYHA D IXQFWLRQDO RU D G\VIXQFWLRQDO RUJDQL]DWLRQ VLWXDWLRQ PD\ EH DOWHUHG VRPHZKDW E\ WKH LPSRUWDQW OHDGHUVKLS YDULDEOH LQFOXGHG LQ WKH PRGHO I7KH VXSHUYLVRU IRU LQVWDQFH PD\ EH DEOH WR LQWURGXFH VRPH IOH[LELOLW\ LQWR D VLWXDWLRQ WKDW LV ULJLG DQG QRQDGDSWDEOH WR FRQGLWLRQV D ,ELG S ,KLG

PAGE 35

$ GHPRFUDWLF OHDGHUVKLS VW\OH ZRXOG EH FKDUDFWHUL]HG E\ SRLQWV DQG RQ WKH OHDGHUVKLS FRQWLQXXP SUHVHQWHG LQ )LJXUH D JHQHUDO OHDGHUVKLS VW\OH ZRXOG FRYHU VFDOH YDOXHV DQG DQG DQ DXWRn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n FDQW GLPHQVLRQV RI EHKDYLRU WKDW DUH LPSRUWDQW WR WKH IXQFWLRQ RI DQ RUJDQL]DWLRQA 7KH YDULDEOHV ZKLFK FRPSULVH WKH EHKDYLRUDO SDWWHUQV RI DQ RUJDQL]DWLRQ DUH SUHVHQWHG LQ )LJXUH 7KH PRGHO LQFOXGHV QLQH IDFWRUV RI LQGLYLGXDO EHKDYLRU WKDW DUH YLHZHG DV EHLQJ LPSRUWDQW GLPHQVLRQV ZKLFK DUH HVVHQWLDO WR WKH IXQFWLRQ RI DQ RUJDQL]DWLRQ X 7KH\ DUH MRE LQYROYHPHQW FRPPLWPHQW WR PHHWLQJ VWDQGDUGV LQLWLDWLYH VHOILPSURYHPHQW ZRUN JRDO FRPPLWn PHQW IUXVWUDWLRQ OHYHOV VHQVH RI DFKLHYHPHQW DEVHQWHHLVP DQG WXUQRYHUA ,QWUDJURXS DQG LQWHUJURXS UHODWLRQV DUH DOVR FRQVLGHUHG LQ WKH PRGHO DV LPSRUWDQW GLPHQVLRQV DIIHFWLQJ WKH RUJDQL]DWLRQnV RSHUDWLRQV 6RPH VLJQLILFDQW GLPHQVLRQV RI ODWHUDO UHODWLRQV ZLWKLQ DQG DPRQJ JURXSV DUH FRQILGHQFH DQG WUXVW H[WHQW DQG QDWXUH RI LQWHUDFWLRQ SDWWHUQV DFFXUDF\ DQG FRPSOHWHQHVV RI FRPPXQLFDWLRQ GHJUHH RI FRRSHUDWLRQ ,ELG S ,ELG ,ELG S ,ELG S ,ELG

PAGE 36

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

PAGE 37

& ,QWUDJURXS %HKDYLRU 9HUWLFDO 5HODWLRQV 7UXVW DQG &RQILGHQFH'RZQZDUG 7UXVW DQG &RQILGHQFH8SZDUG 5HTXHVWHG ,QIRUPDWLRQ &RPPXQLFDWLRQ 6FUHHQLQJ -RE ,QIRUPDWLRQ +XPDQ 5HODWLRQV ,QIRUPDWLRQ &RRSHUDWLRQ DQG 7HDPZRUN $FFHSWDQFH RI ,PPHGLDWH 6XSHUYLVRUnV 'HFLVLRQV $FFHSWDQFH RI +LJKHU /HYHO 0DQDJHPHQW 'HFLVLRQV $FFHSWDQFH RI 6WDII *URXS 'HFLVLRQV ,QWHUJURXS %HKDYLRU &RQILGHQFH DQG 7UXVW &RPPXQLFDWLRQV $FFXUDF\ &RPPXQLFDWLRQV 6FUHHQLQJ ,QIRUPDO &RPPXQLFDWLRQV &RRSHUDWLRQ DQG 7HDPZRUN 7HDP 6SLULW $FFHSWDQFH RI 'HFLVLRQV ,QWHUDFWLRQ 3DWWHUQV )LJ 0($685(0(17 &217,1880 5DUHO\ 5DUHO\ 5DUHO\ $OPRVW DOZD\V 5DUHO\ 5DUHO\ 5DUHO\ $OPRVW f$OPRVW $OPRVW $OPRVW $OPRVW $OPRVW DOZD\V DOZD\V DOZD\V 5DUHO\ DOZD\V DOZD\V DOZD\V 5DUHO\ 9HU\ RIWHQ 5DUHO\ 9HU\ RIWHQ 5DUHO\ $OPRVW DOZD\V 5DUHO\ 5DUHO\ $OPRVW DOZD\V 5DUHO\ 5DUHO\ 5DUHO\ 5DUHO\ 5DUHO\ $OPRV W $OPRVW $OPRVW $OPRVW $OPRVW $OPRVW $OPRVW DOZD\V DOZD\V 5DUHO\ DOZD\V DOZD\V DOZD\V DOZD\V DOZD\V &RQWLQXHG

PAGE 38

$ Q FRKHVLYHQHVV DQG JURXS OR\DOW\ff] 9HUWLFDO VXSHULRUVXERUGLQDWH UHODn WLRQV ZLWKLQ WKH VDPH JURXS DUH DOVR LPSRUWDQW 7KH\ LQFOXGH PXWXDO ffWUXVW DQG FRQILGHQFHf DFFXUDF\ DQG FRPSOHWHQHVVf RI VXSHULRU UHTXHVWHG LQIRUPDWLRQ DQG WKH H[WHQW fWR ZKLFK VXERUGLQDWHV LQLWLDWH FRPPXQLFDWLRQ XSZDUG7KH DGGLWLRQDO EHKDYLRU YDULDEOHV RI FRRSHUDn WLRQ WHDPZRUN OR\DOW\ DQG VXERUGLQDWHVf DFFHSWDQFH RI GHFLVLRQV PDGH E\ VXSHUYLVRUV RU VSHFLDOLVW JURXSV RXWVLGH WKH GHSDUWPHQWfAn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f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

PAGE 39

)LJXUHV DQG WRJHWKHU PDNH XS WKH EHKDYLRU V\VWHPV PRGHO 7KH RYHUDOO PRGHO DVVXPHV WKDW JHQHUDOO\ LGHQWLFDO RUJDQL]DWLRQDO FRQWH[WV H[SUHVVHG LQ WHUPV RI WKH VWUXFWXUDO DQG OHDGHUVKLS YDULDEOHVVKRXOG UHVXOW LQ VLPLODU EHKDYLRUDO SDWWHUQV HPHUJLQJ 7KH UHYHUVH RI WKLV 2 LV HTXDOO\ WUXH DFFRUGLQJ WR WKH ORJLF RI WKH PRGHO 0HOFKHU VWDWHV WKDW IWKH WHVW RI WKH PRGHO EDVLFDOO\ LV ZKHWKHU RQH FDQ SUHGLFW DQG H[SODLQ WKH FDXVHV RI EHKDYLRU LQ DQ\ RUJDQL]DWLRQDO VHWWLQJAp ,Q VXPPDU\ WKH HQYLURQPHQW LQ ZKLFK D SHUVRQ RSHUDWHV GHILQHG LQ WHUPV RI WKH VWUXFWXUDO YDULDEOHV DQG WKH OHDGHUVKLS VW\OHH[HUWV SUHVVXUHV XSRQ LQGLYLGXDOV DQG JURXSV ZKLFK UHVXOWV LQ D SUHGLFWDEOH DQG H[SODLQn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

PAGE 40

$ TXDOLILFDWLRQ LV QRWHG UHJDUGLQJ WKLV ODVW SRLQW 7KH HPHUJLQJ EHKDYLRUDO SDWWHUQV SUHVXPDEO\ DUH GLUHFWO\ UHOHYDQW WR WKH HIIHFWLYHQHVV RI WKH RUJDQL]DWLRQ &RQFOXVLRQ ,Q FRQFOXGLQJ WKH DUWLFOH 'U 0HOFKHU QRWHV VHYHUDO EHQHILWV ZKLFK DUH DVVRFLDWHG ZLWK WKH PRGHO ,Q DQ DEEUHYLDWHG VXPPDU\ IRUP WKH\ DUH 3UHVHQWLQJ D VHW RI YDULDEOHV LQ PRGHO IRUP LPSRVHV DQ DQDO\WLn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

PAGE 41

&+$37(5 ,,, '$7$ '(6&5,37,21 2) 3/$17 $ ,QWURGXFWLRQ 'HVFULSWLRQ RI WKH GDWD FROOHFWHG IRU 3ODQW $ LV SUHVHQWHG LQ WKLV FKDSWHU (DFK YDULDEOH DQG DOO LPSRUWDQW VXEYDULDEOHV FRQVWLWXWn LQJ WKH PDMRU DUHDV RI SULPDU\ VWUXFWXUDO PHGLDWLQJ VWUXFWXUDO OHDGHUn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n VKLS KROGV WUXH IRU RWKHU DUHDV LQ ZKLFK ZRUN JURXS UHVSRQGHG

PAGE 42

3ODQW 0DQDJHU 7KLUG /HYHO 6HFRQG /HYHO 6XSHUYLL :RUN *URXS 6XSHUYLVRU :RUN *URXS RUHPD RUHPDU )RUHPDQ 6XSHUYLVRU :RUN *URXS RUHPDQ )RUHPD )RUHPD 6XSHUYLVRU ? 6XSHUYLVRU Mr 6XSHUYLVRU 6XSHUYLVRU 6XSHUYLVRU :RUN _ :RUN I :RUN :RUN :RUN *URXS f *URXS @ *URXS *URXS *URXS )RUHPD )RUHPDU &KLHI (OHF M 6 VX3HU_ &KHPLV 6XSHUYLVRU 2IILFH &OHUN &OHUN &OHUN )RUHPD PD &OHUN )RUHPDL )RUHPDL )RUHPDQ 0DLQW &OHUN )RUHPD )RUHPD L )RUHPD &OHUN &OHUN )LJ 2UJDQL]DWLRQ &KDUW 3ODQW $

PAGE 43

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f DQG WKH VXSHUYLVRU\ OHYHO WKH VHFRQG OHYHOf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

PAGE 44

7$%/( 3/$17 $ $9(5$*( 5(63216( 72 35,0$5< 6758&785$/ 48(67,211$,5( ,7(06 %< 9$5,$%/( $1' :25. *5283 :RUN *URXS 9DULDEOH L 6L]HD :RUN )ORZ ,QWUDJURXS ,QWHUJURXS :RUN JURXS f§ ,I f§ LL LL L" LL LL LL A LL LL Q LL L 6S7 )DFWRUV ,QWUDJURXS ,QWHUJURXS :RUN JURXS f§ LL LW f§ LL Q A WL LL LL LL A LL LL f LL LL \ LL LL T f f§ :RUN 'HPDQGV f +HXULVWLFV D7KH VL]H DYHUDJH UHVSRQVHV DUH DUULYHG DW E\ XVLQJ 7DEOH ZKLFK DSSHDUV LQ WKH JORVVDU\

PAGE 45

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n YLHZ VHVVLRQV WKDW WRRN SODFH SULRU WR WKH DFWXDO GDWD FROOHFWLRQ :H DUH LQWHUHVWHG LQ WKH VLJQLILFDQW UHODWLRQV WKDW DUH SUHVHQW ZLWKLQ WKH RUJDQL]DWLRQ WKDW FRXOG FRQWULEXWH WR WKH RUGHUO\ RU GLVMRLQWHG IORZ RI WDVN UHTXLUHPHQWV RI WKH YDULRXV GHSDUWPHQWV 3ODQW $ DV DUH 3ODQWV % DQG &f LV D SURFHVV W\SH PDQXIDFWXULQJ RSHUDWLRQ 7KH DFWXDO SURGXFWLRQ RI WKH SURGXFW WDNHV SODFH ZLWKLQ DQG EHWZHHQ ZRUN JURXSV DQG 7KH GHJUHH RI ZRUN IORZ LQWHJUDWLRQ LV IDLUO\ KLJK EHWZHHQ WKHVH WKUHH ZRUN JURXSV EXW LV PRGHUDWHG VRPHZKDW E\ WKH H[LVWHQFH RI GHSDUWPHQWDO VWRUDJH IDFLOLWLHV 7KLV DOORZV IRU D KLJK GHJUHH RI DGn MXVWPHQWV WR WDNH SODFH ZLWKLQ D VSHFLILF SURGXFWLRQ GHSDUWPHQW LQ FDVH RI GLVUXSWLRQ RFFXUULQJ LQ WKH SUHYLRXV VWDJH RI WKH SURGXFWLRQ SURFHVV :RUN JURXSV WKURXJK DUH HVVHQWLDOO\ VXSSRUWLYH GHSDUWPHQWV 7DEOH GHSLFWV WKH GHJUHH RI LQWHUJURXS ZRUN IORZ WKDW H[LVWV EHWZHHQ WKH HLJKW ZRUN JURXSV RI 3ODQW $ 7KH H[WHQW RI LQWHJUDWLRQ DPRQJ WKH WKUHH SURGXFWLRQ ZRUN JURXSV LV IDLUO\ FRQVLVWHQW 7KH PRVW

PAGE 46

LPSRUWDQW RU WKH RQH WKDW LV VRPHZKDW PRUH LQWHJUDWHG WKDQ WKH RWKHUV LV ZRUN JURXS DQG ZRUN JURXS D UHVSRQVHf 7KH OHDVW LQWHn JUDWHG RI WKH WKUHH DUH ZRUN JURXSV DQG D UHVSRQVHf &RQVLGHUn LQJ WKH RYHUDOO GHJUHH RI ZRUN IORZ LQWHJUDWLRQ H[LVWLQJ EHWZHHQ ZRUN JURXSV DQG LW FDQ EH VDLG WKDW WKH SURGXFWLRQ SURFHVV RI 3ODQW $n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f 6SDWLDO3K\VLFDO7HPSRUDO )DFWRUV 7KH H[WHQW WR ZKLFK WKH ZRUN JURXSV LQ 3ODQW $ FDQ EH FKDUDFWHUL]HG DV EHLQJ FRQFHQWUDWHG RU GLVSHUVHG LV PHDVXUHG E\ WKH IDFWRUV RI GLVWDQFH VSDWLDO RULHQWDWLRQ SK\VLFDO EDUULHUV WLPH DQG QRLVH OHYHO 7KH VSDWLDOSK\VLFDOWHPSRUDO 637f IDFWRUV IRU LQWUDJURXS DQG LQWHUJURXS WKDW H[LVW ZLWKLQ 3ODQW $ ZHUH PHDVXUHG ,QWUDJURXS VSW IDFWRUV 7KH SURGXFWLRQ ZRUN JURXSV JURXSV WKURXJK f ZHUH VRPHZKDW GLVSHUVHG ZLWK DOO WKUHH JURXSV UHVSRQGLQJ EHWZHHQ DQG 7KH UHPDLQLQJ ZRUN JURXSV DUH GHFLGHGO\ FRQFHQWUDWHG DV IDU DV WKH 637 IDFWRUV DUH FRQFHUQHG ZLWK UHVSRQVHV UDQJLQJ IURP WR

PAGE 47

,QWHUJURXS VSW IDFWRUV :RUN JURXS LV PRGHUDWHO\ WR VRPHZKDW GLVSHUVHG IURP WKH WKUHH LPSRUWDQW ZRUN JURXSV IRU ZKLFK GDWD ZHUH REWDLQHG 7KLV UHODWLRQVKLS DOVR JHQHUDOO\ KROGV WUXH IRU ZRUN JURXSV DQG DQG WKHLU VHSDUDn WLRQ IURP RWKHU JURXSV :RUN JURXSV DQG H[KLELW WKH KLJKHVW GHJUHH RI VHSDUDWLRQ IURP WKRVH ZRUN JURXSV WKDW ZHUH PHDVXUHG :RUN JURXS VKDUHV WKH OHDVW DPRXQW RI VHSDUDWLRQ IURP ZRUN JURXS VRPHZKDW FRQFHQWUDWHGf RI DOO WKH ZRUN JURXSV :RUN JURXSV DQG DUH RQ WKH VDPH IORRU DQG DFURVV WKH KDOO IURP HDFK RWKHUf :RUN 'HPDQGV 7KH UHODWLYH GHJUHH RI VWDELOLW\ LQ WKH GHPDQGV WKDW DUH PDGH XSRQ WKH ZRUN JURXSV DV WKH\ SHUIRUP WKHLU MREV FDQ EH GHVFULEHG DV UDQJLQJ IURP VWDEOH WR XQVWDEOH :RUN JURXS KDV WKH KLJKHVW VWDELOLW\ f LQ ZRUN GHPDQGV RI WKH HLJKW ZRUN JURXSV 7KH ZRUN JURXS WKDW KDV WKH OHDVW DPRXQW RI VWDELOLW\ JURXS ZLWK FDQ EH GHVFULEHG DV KDYLQJ DERXW KDOI WKH WLPH VWDEOHXQVWDEOH GHPDQGV $OO ZRUN JURXSV LQ 3ODQW $ IDOO RQ WKH VWDEOH VLGH RI WKH ZRUN GHPDQGV PHDVXUHPHQW FRQWLQXXP +HXULVWLFV 7KH ODVW YDULDEOH WR EH FRQVLGHUHG UHJDUGLQJ WKH SULPDU\ VWUXFWXUDO YDULDEOHV RI 3ODQW $ LV KHXULVWLFV WKH H[WHQW WKDW WKH ZRUN JURXSVn WDVNV DUH SUHGLFWDEOH DQG WKH H[WHQW WKDW KHOS IURP RWKHUV WR VROYH D SDUWLFXODU SUREOHP LV DYDLODEOH $OO ZRUN JURXSV LQ 3ODQW $ FDQ EH FKDUDFWHUL]HG DV KDYLQJ WKHLU DFWLRQV RU GHFLVLRQV UDQJLQJ IURP HLWKHU IDLUO\ SUHGLFWDEOH f RU DOPRVW WRWDOO\ SUHGLFWDEOH f 2WKHUZLVH 3ODQW $ KDV ZRUN JURXSV WKDW H[KLELW IDLUO\ URXWLQH VHDUFK SURFHGXUHV YLVDYLV WDVN UHTXLUHPHQWV

PAGE 48

)LJXUHV VXPPDUL]LQJ WKH SULPDU\ VWUXFWXUDO YDULDEOHV LQ D SURILOH IRUP IRU DOO ZRUN JURXSV LQ 3ODQW $ DSSHDU DV SDUW RI $SSHQGL[ $ SURILOH RI WKH PHGLDWLQJ VWUXFWXUDO YDULDEOHV ZKLFK ZLOO EH GLVFXVVHG LQ WKH QH[W VHFWLRQ LV DOVR LQFOXGHG LQ $SSHQGL[ 0HGLDWLQJ 6WUXFWXUDO 9DULDEOHV RI 3ODQW $ 7KH PDMRU PHGLDWLQJ VWUXFWXUDO YDULDEOHV DUH IRUPDO DXWKRULW\ UHODWLRQVKLSV FRQWURO V\VWHP DQG LQIRUPDWLRQ V\VWHP 7KUHH HOHPHQWV FRPSULVH WKH IRUPDO DXWKRULW\ UHODWLRQVKLS f GHOHJDWLRQ f OHYHOV DQG f GHSDUWPHQWDWLRQ 7DEOH UHSRUWV WKH UHVSRQVHV WR WKHVH TXHVWLRQQDLUH LWHPV EXW WKH GLVFXVVLRQ LQ WKLV VHFWLRQ LV LQ WHUPV RI WKH PDLQ YDULDEOH 7KH UHDGHU DJDLQ VKRXOG UHIHU WR WKH JORVVDU\ IRU D IXOO GHILQLWLRQ RI DOO WKH PDLQ YDULDEOHV DQG WKHLU VXEYDULDEOHV 7$%/( 3/$17 $ $9(5$*( 5(63216( 72 0(',$7,1* 6758&785$/ 48(67,211$,5( ,7(06 %< 9$5,$%/( $1' :25. *5283 9DULDEOH :RUN *URXS L )RUPDO $XWKRULW\ 'HOHJDWLRQ /HYHOV 'HSDUWPHQWDWLRQ &RQWURO 6\VWHP ,QIRUPDWLRQ 6\VWHP ,QWUDJURXS ,QWHUJURXS 9HUWLFDO

PAGE 49

)RUPDO $XWKRULW\ 7KH IRUPDO DXWKRULW\ UHODWLRQVKLSV WKDW H[LVW ZLWKLQ HDFK RI WKH HLJKW ZRUN JURXSV RI 3ODQW $ FDQ EH GHVFULEHG DV IDLUO\ GLIIXVH :RUN JURXS KDV WKH KLJKHVW H[WHQW RI XQVSHFLILHG IRUPDO DXWKRULW\ UHODWLRQn VKLSV DW ZKLOH ZRUN JURXS LV DW WKH RWKHU H[WUHPH ZLWK D UHODn WLYHO\ KLJKHU GHJUHH RI VSHFLILHG IRUPDO DXWKRULW\ DW (DFK RI WKH UHPDLQLQJ ZRUN JURXSV OLHV EHWZHHQ WKHVH WZR QDUURZ UDQJHV &RQWURO 6\VWHP 7KH IRUPDO V\VWHP IRU HYDOXDWLQJ SHUIRUPDQFH ZKLFK LQFOXGHV VWDQGn DUGV PHDVXULQJ LQVWUXPHQWV DQG WKH SURFHGXUH IRU DOORFDWLQJ UHZDUGV SHQDOWLHV FRQVWLWXWHV WKH H[LVWLQJ FRQWURO V\VWHP RI 3ODQW $ 7KH V\VWHP PD\ UDQJH IURP DQ LQVWLWXWLRQDO W\SH ZKHUH WKHUH DUH QR IRUPDO VSHFLILFDWLRQV HVWDEOLVKHG WR RQH ZKHUH IRUPDO LQGLYLGXDO SHUIRUPDQFH V\VWHPV FOHDUO\ H[LVW :RUN JURXSV DQG KDYH D SDUWLDO FRQWURO V\VWHP IRUPDOL]HG UHJDUGLQJ HPSOR\HH SHUIRUPDQFH UHVSRQVHV DQG UHVSHFWLYHO\f 7KH UHPDLQLQJ ZRUN JURXSV KDYH D UHODWLYHO\ KLJKHU LQFLGHQW RI IRUPDOL]HG LQGLYLGXDO SHUIRUPDQFH V\VWHPV H[LVWLQJ ZLWKLQ WKHLU ZRUN JURXS :RUN JURXS KDV WKH PRVW IRUPDOL]HG FRQWURO V\VWHP VSHFLILHG f RI DOO HLJKW ZRUN JURXSV LQ 3ODQW $ ,QIRUPDWLRQ 6\VWHP 7KH IRUPDO QHWZRUN RI UHFHLYLQJ DQG WUDQVPLWWLQJ FHQWHUV DQG WKH FRPPXQLFDWLRQ UHODWLRQVKLSV WKDW H[LVW FRPSULVH WKH LQIRUPDWLRQ V\VWHP RI DQ RUJDQL]DWLRQ 7KH UHVXOWLQJ V\VWHP PD\ EH GHVFULEHG DV UDQJLQJ IURP D VLPSOH WR D FRPSOH[ LQIRUPDWLRQ V\VWHP 7KH LQIRUPDWLRQ V\VWHP IRU 3ODQW $ ZLOO EH GLVFXVVHG IURP WKH VWDQGSRLQW RI LQWUDJURXS LQWHUn JURXS DQG YHUWLFDO UHODWLRQV

PAGE 50

,QWUDJURXS LQIRUPDWLRQ V\VWHP $OO ZRUN JURXSV FDQ EH FKDUDFWHUL]HG DV SRVVHVVLQJ D PRGHUDWH FRPSOH[ LQWUDJURXS LQIRUPDWLRQ V\VWHP 7KDW LV ZLWKLQ WKHLU UHVSHFn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f DQG WKH OHDGHUn VKLS VW\OHV RI WKH HLJKW VHFRQG OHYHO VXSHUYLVRUV DV WKH\ DUH HYDOXDWHG E\ WKHLU LPPHGLDWH VXERUGLQDWHV DUH GHVFULEHG LQ WKLV VHFWLRQ 7KH SODQW PDQDJHU DQG WKH VXSHUYLVRUV DUH FKDUDFWHUL]HG LQ WKH ZD\ LQ ZKLFK WKH\ FDUU\ RXW WKHLU OHDGHUVKLS UROHV E\ GHVFULELQJ WZHOYH GLPHQVLRQV

PAGE 51

RI OHDGHUVKLS 7KHVH GLPHQVLRQV DUH f UHSUHVHQWDWLRQ f LQWHUn DFWLRQ f VWDQGDUGV f JRDO HPSKDVLV f SDUWLFLSDWLRQ f GLUHFn WLRQ f UXOH RULHQWDWLRQ f PRWLYDWLRQ f WHFKQLFDO TXDOLILFDWLRQ f DFWLRQ RULHQWDWLRQ f SUREOHP VNLOOV DQG f SHUVRQDO DELOLWLHV ,Q GHVFULELQJ WKH OHDGHUVKLS VW\OHV SUHVHQW LQ 3ODQW $ D EURDG DUELWUDU\ FODVVLILFDWLRQ VFKHPH LV XVHG LQ VRPH LQVWDQFHV 7KH FODVVLn ILFDWLRQ VFKHPH WKDW LV XVHG IRU WKH ILUVW HLJKW OHDGHUVKLS GLPHQVLRQV OLVWHG DERYH LV f UHVSRQVH YDOXHV RI WR FODVVLILHG DV DQ H[DPSOH RI D GHPRFUDWLF OHDGHUVKLS VW\OH f YDOXHV RI WR WHUPHG D JHQHUDOf VW\OH DQG f UHVSRQVHV RI WR UHJDUGHG DV DXWRFUDWLF OHDGHUVKLS LQGLFDWRUV )RU WKH IRXU PLVFHOODQHRXV OHDGHUVKLS GLPHQVLRQV WKH EURDG GHVFULSn WLYH FODVVLILFDWLRQ VFKHPH LV DV IROORZV f UHVSRQVH YDOXHV RI WR DUH WHUPHG H[DPSOHV RI ORZ FRPSHWHQF\ f YDOXHV RI WR DUH GHVFULEHG DV PRGHUDWH FRPSHWHQF\ DQG f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

PAGE 52

7$%/( 3/$17 $ $9(5$*( 5(63216( 2) 1,1( 6(&21' /(9(/ 683(59,6256 72 /($'(56+,3 48(67,211$,5( (9$/8$7,1* 7+( 3/$17 0$1$*(5n6 /($'(56+,3 67
PAGE 53

LQFOXGHG ZLWK WKH HLJKW VXSHUYLVRUV ZKR HYDOXDWHG WKH SODQW PDQDJHU VLQFH D VLJQLILFDQW VXSHULRUVXERUGLQDWH UHODWLRQVKLS H[LVWHG LQ WKLV LQVWDQFH 5HSUHVHQWDWLRQ 7KH SODQW PDQDJHU LV YLHZHG DV XVXDOO\ f UHSUHVHQWLQJ KLV VXERUGLQDWHV LQWHUHVWV WR KLJKHU OHYHO PDQDJHPHQW +H XVXDOO\ DFWV DV WKH VSRNHVPDQ DQG GHIHQGHU RI WKH QLQH VXSHUYLVRUV WR KLV VXSHULRUV DQG RWKHU JURXSV ,QWHUDFWLRQ 4XLWH RIWHQ ODWHUDO LQWHUDWLRQ f DPRQJ WKH QLQH VXSHUYLVRUV LV HQFRXUDJHG E\ WKH SODQW PDQDJHU +H XVXDOO\ WULHV WR PHHW ZLWK WKH VXSHUYLVRUV LQ RUGHU WR ZRUN RXW VRPH FRPPRQ ZRUN SUREOHPV EXW VWLOO HQFRXUDJHV PRUH ODWHUDO LQWHUDFWLRQ EHWZHHQ WKH YDULRXV VXSHUYLVRUV WKDQ ZLWK KLPVHOI 6WDQGDUGV 0RGHUDWH KLJK f VWDQGDUGV DUH HPSKDVL]HG E\ WKH SODQW PDQDJHU ZKLOH XVXDOO\ VWLOO DOORZLQJ WKH VXSHUYLVRUV VRPH IUHHGRP LQ WKH HVWDE OLVKPHQW RI WKH OHYHO RI SHUIRUPDQFH *RDO HPSKDVLV 6RPHZKDW LQGLYLGXDO JRDOV f DUH HPSKDVL]HG DV RSSRVHG WR JURXS JRDOV LQ UHDOL]LQJ MRE FRPSOHWLRQ ZLWK VWUHVV XVXDOO\ EHLQJ SODFHG XSRQ LQGLYLGXDO UHVSRQVLELOLW\ 3DUWLFLSDWLRQ 7KH SODQW PDQDJHU PDNHV XVH RI UDWKHU H[WHQVLYH SDUWLFLSDWLRQ f LQ DUULYLQJ DW GHFLVLRQV +H XVXDOO\ LQYROYHV KLV VXERUGLQDWHV LQ WKH GHFLVLRQ PDNLQJ SURFHVV

PAGE 54

'LUHFWLRQ *HQHUDO GLUHFWLRQ f RI KLV SODQW PDQDJHU +H XVXDOO\ SUHIHUV ZKHQ JXLGDQFH LV UHTXLUHG VXERUGLQDWHV LV IROORZHG E\ WKH WR EH IOH[LEOH DQG VRPHZKDW SDVVLYH 5XOH RULHQWDWLRQ $V IDU DV UXOH RULHQWDWLRQ LV FRQFHUQHG WKH SODQW PDQDJHU FDQ EH FKDUDFWHUL]HG DV SRVVHVVLQJ D JHQHUDO DWWLWXGH WRZDUGV REVHUYLQJ UXOHV SROLFLHV DQG SURFHGXUHV WKDW DUH HVWDEOLVKHG 0RWLYDWLRQ 7KH QLQH VHFRQG OHYHO VXSHUYLVRUV UHVSRQGHG WKDW WKH XVH RI UHZDUGV WR PRWLYDWH SHUIRUPDQFH ZDV WKH XVXDO DSSURDFK XVHG E\ WKH SODQW PDQDJHU 0RWLYDWLRQ f DQG SDUWLFLSDWLRQ f ZKLFK ZDV SUHYLRXVO\ GLVFXVVHG ZHUH WKH WZR GLPHQVLRQV IDUWKHVW WR WKH OHIW RQ WKH OHDGHUVKLS FRQWLQXXP DSSUR[LPDWHO\ D GHPRFUDWLF OHDGHUVKLS VW\OH IRU WKHVH WZR GLPHQVLRQV 7HFKQLFDO TXDOLILFDWLRQV 7KH SODQW PDQDJHUIV VXERUGLQDWHV YLHZHG KLV WHFKQLFDO TXDOLILFDWLRQV LQ WKH SHUIRUPDQFH RI KLV MRE DV UDWKHU H[WHQVLYH f $FWLRQ RULHQWDWLRQ $ KLJK GHJUHH RI GHFLVLYHQHVV KDUG ZRUN HQWKXVLDVP DQG UHVSRQVLn ELOLW\ WRZDUG KLV MRE FKDUDFWHUL]HV WKH SODQW PDQDJHU $ YDOXH RI UHJDUGLQJ WKLV GLPHQVLRQ ZDV WKH KLJKHVW RI DOO WKH WZHOYH GLPHQVLRQV PHDVXUHG 3UREOHP VNLOOV 5DWKHU H[WHQVLYH f UHDVRQLQJ SHUFHLYLQJ DQG FRQFHSWXDOL]LQJ VNLOOV SHUWDLQLQJ WR SUREOHPV DWH SRVVHVVHG E\ WKH SODQW PDQDJHU

PAGE 55

3HUVRQDO DELOLWLHV DQG RULHQWDWLRQ 5HJDUGLQJ KLV FRPPXQLFDWLQJ DQG SHUVRQDO LQFOLQDWLRQV WKH SODQW PDQDJHU LV YLHZHG DV TXLWH SRVLWLYHO\ RULHQWHG f %\ ZD\ RI D VXPPDU\ )LJXUH ZKLFK LV LQFOXGHG LQ $SSHQGL[ UHSUHVHQWV WKH OHDGHUVKLS SURILOH RI WKH SODQW PDQDJHU )URP WKLV VXPPDU\ SURILOH WKH SODQW PDQDJHUIV OHDGHUVKLS VW\OH FDQ EH GHVFULEHG DV JHQHUDOf ZLWK WZR LPSRUWDQW DVSHFWV SDUWLFLSDWLRQ DQG PRWLYDWLRQ DV WHQGLQJ PRUH WRZDUG D GHPRFUDWLFf OHDGHUVKLS VW\OH +H LV YLHZHG DV EHLQJ KLJKO\ FRPSHWHQW LQ SHUIRUPLQJ KLV MRE DV WKH SODQW PDQDJHU 7KH UHVSRQVHV WR WKH PLVFHOODQHRXV GLPHQVLRQV DOO IHOO QHDU WKH H[WUHPH ULJKW VLGH RI WKH FRQWLQXXP 6HFRQG /HYHO 6XSHUYLVRUV /HDGHUVKLS 6W\OHV 7DEOH UHSUHVHQWV WKH DYHUDJH UHVSRQVH RI WKH VHFRQG OHYHO VXSHUn YLVRUV LPPHGLDWH VXERUGLQDWHV WR WKH OHDGHUVKLS TXHVWLRQQDLUH 7KH IRUHPHQ DQG RWKHU VDODULHG SHUVRQQHO RI DOO HLJKW ZRUN JURXSV LQ 3ODQW $ HYDOXDWHG WKHLU GLUHFW VXSHULRU DV WR KLV OHDGHUVKLS FKDUDFWHULVWLFV DORQJ WKH VDPH WZHOYH OHDGHUVKLS GLPHQVLRQV GLVFXVVHG LQ WKH SUHYLRXV VHFWLRQ 5HSUHVHQWDWLRQ 7KH VXSHUYLVRUV RI ZRUN JURXSV DQG WHQG WR UHSUHVHQW WKHLU VXERUGLQDWHV WR KLJKHU PDQDJHPHQW VOLJKWO\ PRUH WKDQ WKH UHPDLQLQJ VXSHUYLVRUV 7KH VXSHUYLVRU RI ZRUN JURXS H[KLELWV WKH KLJKHVW WHQGHQF\ f WRZDUG XSZDUG UHSUHVHQWDWLRQ ZKLOH WKH VXSHUYLVRU RI ZRUN JURXS KDV WKH OHDVW WHQGHQF\ f WR UHSUHVHQW KLV VXERUGLQDWHV WR XSSHU PDQDJHPHQW

PAGE 56

7$%/( 3/$17 $ $9(5$*( 5(63216( 2) )25(0(1 $1' 27+(5 6$/$5,(' 3(56211(/ 72 /($'(56+,3 48(67,211$,5( (9$/8$7,1* 7+(,5 ,00(',$7( 683(5,25n6 /($'(56+,3 67
PAGE 57

,QWHUDFWLRQ $OO HLJKW ZRUN JURXSV H[KLELW D FRPELQDWLRQ RI ODWHUDO DQG YHUWLn FDO LQWHUDFWLRQ LQ WKHLU DVVHVVPHQW RI WKH VXSHUYLVRU 7KH YDOXHV DUH JURXSHG DURXQG WKH FHQWHU RI WKH LQWHUDFWLRQ FRQWLQXXP IURP WKH ORZHVW DW WR WKH KLJKHVW DW 6WDQGDUGV 7KH VXSHUYLVRUV RI ZRUN JURXSV DQG FDQ EH GHVFULEHG DV HVWDEOLVKLQJ PRGHUDWH VWDQGDUGV DV PHDVXUHV RI WKHLU VXERUGLQDWHVI SHUIRUPDQFH UHVSRQVHV RI DQG UHVSHFWLYHO\f 7KH VXSHUYLVRUV RI JURXSV DQG ERWK GHPDQG WKH VDPH PRGHUDWH KLJK VWDQGDUG OHYHO RI :RUN JURXS HYDOXDWHG WKHLU VXSHUYLVRU DV HVWDEOLVKLQJ WKH KLJKHVW VWDQGDUGV RI DOO JURXSV f *RDO HPSKDVLV $OO JURXSV ZLWK WKH H[FHSWLRQ RI JURXS GHVFULEH WKHLU VXSHUn YLVRUnV JRDO HPSKDVLV DV D FRPELQDWLRQ JURXSLQGLYLGXDO WHQGLQJ VOLJKWO\ WRZDUG LQGLYLGXDO SHUIRUPDQFHV UHVSRQVHV UDQJLQJ IURP WR f *URXS FKDUDFWHUL]HV WKHLU VXSHUYLVRU DV HPSOR\LQJ D FRPELQDWLRQ RI HPSKDVHV EXW WHQGLQJ WRZDUG JURXS JRDOV DV LPSRUWDQW b 3DUWLFLSDWLRQ 7KH VXSHUYLVRU RI JURXS LV WKH RQO\ JURXS OHDGHU WKDW VHHNV D PRGHUDWH GHJUHH RI SDUWLFLSDWLRQ IURP KLV VXERUGLQDWHV f 7KH UHPDLQLQJ VHYHQ VXSHUYLVRUV DOO HPSOR\ IDLUO\ H[WHQVLYH SDUWLFLSDWLRQ LQ DUULYLQJ DW GHFLVLRQV 'LUHFWLRQ $OO VXSHUYLVRUV FDQ EHVW EH GHVFULEHG DV RULHQWHG WRZDUG WKH XVH RI JHQHUDO GLUHFWLRQ LQ WKH PDQQHU LQ ZKLFK WKH\ VXSHUYLVH WKHLU

PAGE 58

VXERUGLQDWHV 7KH VXSHUYLVRU RI JURXS VKRZV WKH KLJKHVW GHYLDWLRQ IURP WKLV QRUP WHQGLQJ WRZDUG FORVH GLUHFWLRQ f 5XOH RULHQWDWLRQ ,Q WKHLU DWWLWXGHV WRZDUG UXOH DGKHUHQFH WKH VXSHUYLVRUV RI WKH ILUVW VHYHQ ZRUN JURXSV DUH GHVFULEHG E\ WKHLU VXERUGLQDWHV DV RIWHQ WDNLQJ D SRVLWLRQ UHTXLULQJ D VRPHZKDW VWULFW DGKHUHQFH WR IRUPDO SURFHGXUHV 7KH UHVSRQVHV RI WKHVH VHYHQ JURXSV DUH QDUURZLQJ FOXVWHUHG EHWZHHQ DQG 7KH H[FHSWLRQ VXSHUYLVRU LV GHn VFULEHG DV DOORZLQJ KLV VXERUGLQDWHV WR GHYLDWH IURP HVWDEOLVKHG UXOHV LQ WKH SHUIRUPDQFH RI WKHLU MREV 0RWLYDWLRQ $OO VXSHUYLVRUV WHQG WR HPSOR\ UHZDUGV WR PRWLYDWH WKHLU VXERUGLn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

PAGE 59

3UREOHP VNLOOV 5HJDUGLQJ WKLV DVSHFW RI OHDGHUVKLS JHQHUDOO\ LW FDQ EH VDLG WKDW WKH VXSHUYLVRUV DV D JURXS VFRUHG ORZHU 6XSHUYLVRUV DQG VFRUHG EHORZ ZKLOH WKH UHPDLQLQJ VFRUHG IURP WR 3HUVRQDO DELOLWLHV DQG RULHQWDWLRQ :KLOH DOO VXSHUYLVRUV ZHUH HYDOXDWHG DV EHLQJ SRVLWLYH LQ WKHLU SHUVRQQHO VNLOOV WKH VXSHUYLVRU RI JURXS ZDV GHVFULEHG DV EHLQJ WKH OHDVW RULHQWHG f WRZDUG WKH SRVLWLYH HQG RI WKH PHDVXUHPHQW FRQWLQXXP )LJXUHV WKURXJK ZKLFK DSSHDU LQ $SSHQGL[ SLFWRULDOO\ SUHVHQW WKH OHDGHUVKLS VW\OHV RI HDFK RI WKH HLJKW ZRUN JURXS VXSHUn YLVRUV RI 3ODQW $ $ EURDG GHVFULSWLRQ RI WKH OHDGHUVKLS VW\OH RI 3ODQW $nV VHFRQG OHYHO VXSHUYLVRUV ZRXOG EH f WKH\ DUH DOO HPSOR\ LQJ D JHQHUDO VW\OH RI OHDGHUVKLS f VRPHZKDW H[WHQVLYH SDUWLFLSDWLRQ DQG UHZDUGV DV PRWLYDWRUV DUH WKH WZR PRVW VLJQLILFDQW IDFWRUV LQIOXHQFn LQJ WKHLU OHDGHUVKLS VW\OHV WRZDUG WKH GHPRFUDWLF HQG RI WKH FRQWLQXXP f KLJK VWDQGDUG HPSKDVLV LV SUREDEO\ WKH VLQJOH LPSRUWDQW IDFWRU VFRUHG WRZDUG WKH DXWRFUDWLF VLGH RI WKH OHDGHUVKLS FRQWLQXXP DQG f DOO VXSHUYLVRUV RI 3ODQW $ FDQ EH FKDUDFWHUL]HG DV SRVVHVVLQJ D KLJK GHJUHH RI FRPSHWHQF\ LQ FDUU\LQJ RXW WKHLU UHVSHFWLYH GXWLHV %HKDYLRUDO 3URILOH RI 3ODQW $ ,Q WKLV VHFWLRQ WKH UHVSRQVHV WR WKLUW\WKUHH EHKDYLRUDO LQGLFHV E\ WKH SDUWLFLSDQWV RI 3ODQW $ DUH UHSRUWHG VHH &KDSWHU ,, ZKHUH WKH LQGLFHV ZHUH ILUVW SUHVHQWHGf 7KH LQGLFHV DUH JURXSHG LQWR IRXU EURDG FDWHJRULHV f LQGLYLGXDO EHKDYLRU f LQWUDJURXS EHKDYLRU ODWHUDO UHODWLRQV f LQWHUJURXS EHKDYLRU YHUWLFDO UHODWLRQV DQG f LQWHUn JURXS EHKDYLRU

PAGE 60

7KH TXHVWLRQQDLUH XVHG WR PHDVXUH EHKDYLRU LV LQFOXGHG DV SDUW RI $SSHQGL[ $ ZLWK $SSHQGL[ & DV WKH NH\ QHHGHG WR XQVFUDPEOH WKH LWHPV LQWR WKH IRXU FDWHJRULHV PHQWLRQHG DERYH 7KH UHVSRQVHV RI HLJKW VHFRQG OHYHO VXSHUYLVRUV DQG WKH DYHUDJH UHVSRQVHV RI IRUHPHQ DQG RWKHU VDODULHG SHUVRQQHO WKH ILUVW OHYHOf LQ HDFK RI WKH HLJKW ZRUN JURXSV DUH UHSRUWHG DQG GLVFXVVHG ,Q RUGHU WR IDFLOLWDWH WKH JHQHUDO GLVFXVVLRQ RI WKH H[LVWLQJ EHKDYLRU LQ 3ODQW $ WKUHH EHKDYLRUDO JURXSLQJV RU W\SHV KDYH EHHQ DUELWUDULO\ HVWDEOLVKHG 7KH JURXSLQJV DUH f UHVSRQVH YDOXHV RI WR DUH GHVLJQDWHG DV QHJDWLYHf EHKDYLRU f YDOXHV RI WR DUH GHVFULEHG DV JHQHUDO EHKDYLRU f DOO UHVSRQVH YDOXHV UDQJLQJ IURP WR DUH SRVLWLYH EHKDYLRU LQGLFDWRUV 6XPPDU\ EHKDYLRUDO SURILOH ILJXUHV IRU WKH WDEXODU GDWD DUH DOVR SUHVHQWHG LQ $SSHQGL[ 6XSHUYLVRUVr 'HVFULSWLRQ RI (PSOR\HHV %HKDYLRU ,Q UHVSRQGLQJ WR WKH EHKDYLRUDO TXHVWLRQQDLUH WKH VXSHUYLVRUV ZHUH GHVFULELQJ WKH HPSOR\HHVf EHKDYLRU DFFRUGLQJ WR WKHLU LQGLYLGXDO SHUFHSn WLRQV 7DEOH UHIOHFWV WKHVH LQGLYLGXDO DWWLWXGHV E\ HDFK VXSHUYLVRU RI WKH HLJKW ZRUN JURXSV RI 3ODQW $ 7KH GLVFXVVLRQ LQ WKLV VHFWLRQ LV SULPDULO\ LQ WHUPV RI WKH WKUHH W\SHV RI EHKDYLRU QHJDWLYH JHQHUDO DQG SRVLWLYH ZLWKLQ WKH IRXU EURDG FDWHJRULHV RI LQGLYLGXDO LQWUDJURXS ODWHUDO LQWUDJURXS YHUWLFDO DQG LQWHUJURXS EHKDYLRU ,QGLYLGXDO EHKDYLRU 1LQH LQGLFHV PDNH XS WKH LQGLYLGXDO EHKDYLRU FDWHJRU\ ,W FDQ EH DVVXPHG WKDW JHQHUDOO\ WKH VXSHUYLVRUV ZHUH GHVFULELQJ WKH LQGLYLGXDO

PAGE 61

7$%/( 3/$17 $ 5(63216( 2) (,*+7 6(&21' /(9(/ 683(59,6256 72 %(+$9,25 48(67,211$,5( '(6&5,%,1* (03/2<(( %(+$9,25 %< 9$5,$%/( $1' :25. *5283 9DULDEOH :RUN *URXS L ,QGLYLGXDO %HKDYLRU -RE ,QYROYHPHQW &RPPLWPHQW WR 0HHWLQJ 6WDQGDUGV ,QLWLDWLYH 6HOI,PSURYHPHQW :RUN*RDO &RPPLWPHQW )UXVWUDWLRQ /HYHOV 6HQVH RI $FKLHYHPHQW $EVHQWHHLVP 7XUQRYHU ,QWUDJURXS %HKDYLRU /DWHUDO &RQILGHQFH DQG 7UXVW -RE 5HODWHG &RPPXQLFDWLRQ 1RQ-RE 5HODWHG &RPPXQLFDWLRQ &RRSHUDWLRQ 3DWWHUQV *URXS 8QLW\ ,QWHUDFWLRQ RII WKH -RE ,QWUDJURXS %HKDYLRU 9HUWLFDO 7UXVW DQG &RQILGHQFH'RZQZDUG 7UXVW DQG &RQILGHQFH8SZDUG 5HTXHVWHG ,QIRUPDWLRQ &RPPXQLFDWLRQ 6FUHHQLQJ -RE ,QIRUPDWLRQ +XPDQ 5HODWLRQV ,QIRUPDWLRQ &RRSHUDWLRQ DQG 7HDPZRUN $FFHSWDQFH RI ,PPHGLDWH 6XSHUYLVRU 'HFLVLRQV $FFHSWDQFH RI +LJKHU /HYHO 0DQDJHPHQW 'HFLVLRQV $FFHSWDQFH RI 6WDII *URXS 'HFLVLRQV ,QWHUJURXS %HKDYLRU &RQILGHQFH DQG 7UXVW &RPPXQLFDWLRQV $FFXUDF\ &RPPXQLFDWLRQV 6FUHHQLQJ ,QIRUPDO &RPPXQLFDWLRQV &RRSHUDWLRQ DQG 7HDPZRUN 7HDP 6SLULW $FFHSWDQFH RI 'HFLVLRQV ,QWHUDFWLRQ 3DWWHUQV

PAGE 62

EHKDYLRU RI WKHLU LPPHGLDWH VXERUGLQDWHV 7KHVH DUH WKH HPSOR\HHV ZKLFK WKH VXSHUYLVRUV KDYH WKH JUHDWHVW DPRXQW RI FRQWDFW ZLWK GDLO\ -RE LQYROYHPHQW6RPH HPSOR\HH LQYROYHPHQW LQ WKHLU MREV ZDV GHVFULEHG E\ VXSHUYLVRUV DQG SODFLQJ WKHP LQ WKH QHJDWLYHf EHKDYLRU JURXSLQJ 6XSHUYLVRU IHOW WKDW FRQVLGHUDEOH MRE LQYROYHn PHQW SRVLWLYHf EHKDYLRU ZDV W\SLFDO RI KLV HPSOR\HHV 7KH UHPDLQLQJ VXSHUYLVRUVn GHVFULSWLRQV ZRXOG IDOO ZLWKLQ WKH JHQHUDO EHKDYLRU W\SH &RPPLWPHQW WR PHHWLQJ VWDQGDUGV2QO\ VXSHUYLVRU GHVFULEHG KLV HPSOR\HHV DV VRPHWLPHV WU\LQJ WR PHHW RU H[FHHG HVWDEOLVKHG ZRUN VWDQGDUGV UHVSRQVHf )LYH VXSHUYLVRUV IHOW WKHLU HPSOR\HHVn FRPPLWPHQW WR GRLQJ D IXOO GD\nV ZRUN ZDV SRVLWLYH 7ZR IHOW RQO\ D JHQHUDO EHKDYLRU DWWLWXGH H[LVWHG ,QLWLDWLYH6XSHUYLVRUV DQG UHVSRQGHG WKDW HPSOR\HHV H[KLELW D UHODWLYHO\ ORZ GHJUHH RI LQLWLDWLYH RU QHJDWLYH EHKDYLRU DFFRUGLQJ WR RXU JURXSLQJ VFKHPH ZKLOH WKUHH VXSHUYLVRUV IHOW WKDW SRVLWLYH EHKDYLRU UHJDUGLQJ WKLV YDULDEOH EHVW GHVFULEHG WKHLU HPSOR\HHV 7KUHH VXSHUYLVRUVn GHVFULSWLRQV ZRXOG EH LQ WKH JHQHUDO EHKDYLRU JURXSLQJ 6HOILPSURYHPHQW2QO\ VXSHUYLVRUV DQG GHVFULEHG WKHLU b HPSOR\HHV DV JHQHUDOO\ WU\LQJ WR LPSURYH WKHPVHOYHV )LYH VXSHUn YLVRUVn UHVSRQVHV LQGLFDWH QHJDWLYH EHKDYLRU 1R VXSHUYLVRUV LQGLn FDWHG SRVLWLYH EHKDYLRU RQ WKH SDUW RI WKHLU HPSOR\HHV :RUNJRDO FRPPLWPHQW7KH H[WHQW WKDW HPSOR\HHV HQGHDYRU WR PHHW JRDOV ZDV GHVFULEHG DV SRVLWLYH E\ VXSHUYLVRUV DQG 7KH UHVSRQVHV E\ VXSHUYLVRUV DQG SODFH WKH HPSOR\HHVf EHKDYLRU LQ

PAGE 63

WKH QHJDWLYH JURXSLQJ 7KH UHPDLQLQJ WZR GHVFULSWLRQV DUH JHQHUDO W\SHV )UXVWUDWLRQ OHYHOV(PSOR\HHV LQ ZRUN JURXSV DQG ZHUH GHn VFULEHG E\ WKHLU VXSHUYLVRUV DV XVXDOO\ SRVVHVVLQJ D IHHOLQJ RI IUXVWUDWLRQ LQ SHUIRUPLQJ WKHLU MREVQHJDWLYH EHKDYLRU DFFRUGLQJ WR RXU VFKHPH RI FODVVLILFDWLRQ $ ORZHU GHJUHH RI IUXVWUDWLRQ ZDV H[n SHULHQFHG LQ WKH SRVLWLYH EHKDYLRU RI JURXSV DQG ZKLOH WKH UHPDLQLQJ IRXU ZRUN JURXSV FDQ EH W\SHG DV JHQHUDO EHKDYLRU 6HQVH RI DFKLHYHPHQW1HJDWLYH EHKDYLRU FDQ EH DVFULEHG WR ZRUN JURXSV DQG UHJDUGLQJ WKLV YDULDEOH ZKLOH WKH UHODWLYHO\ KLJKHU GHJUHH RI HPSOR\HH VDWLVIDFWLRQ RXW RI GRLQJ D JRRG MRE HYLGHQFHG LQ JURXSV DQG DUH H[DPSOHV RI JHQHUDO EHKDYLRU 2QO\ VXSHUn YLVRUV DQG IHOW WKHLU HPSOR\HHVU EHKDYLRU ZDV VXFK WR DOORZ WKHLU LQFOXVLRQ LQ WKH SRVLWLYH EHKDYLRU JURXSLQJ $EVHQWHHLVP-RE DWWHQGDQFH ZDV IHOW WR KDYH DQ XQVWDEOH HIIHFW RQ RSHUDWLRQV LQ JURXSV DQG UHVXOWLQJ LQ QHJDWLYH EHKDYLRU 7KH H[WHQW WKDW VRPHWLPHV DEVHQWHHLVP DIIHFWHG RSHUDWLRQV DV UHVSRQGHG E\ VXSHUYLVRUV DQG LQGLFDWHG D SRVLWLYH EHKDYLRU RULHQWDWLRQ 7KH UHVSRQVHV RI VXSHUYLVRUV DQG ZHUH D JHQHUDO EHKDYLRU LQGLFDWRU 7XUQRYHU2QO\ WKH VXSHUYLVRU RI JURXS IHOW WKDW HPSOR\HH FRQn WLQXLW\ XVXDOO\ DIIHFWHG RSHUDWLRQV 7KH UHPDLQLQJ VHYHQ VXSHUYLVRUV H[SUHVVHG WKH DWWLWXGH WKDW VRPHWLPHV RU UDUHO\ GLG WXUQRYHU DIIHFW WKHLU RSHUDWLRQVD SRVLWLYH EHKDYLRU UHSO\ 6XPPDUL]LQJ WKH UHVSRQVHV WR WKH LQGLYLGXDO EHKDYLRU TXHVWLRQV PDGH E\ WKH HLJKW VXSHUYLVRUV VXSHUYLVRU H[SUHVVHG WKH KLJKHVW

PAGE 64

GHJUHH RI QHJDWLYHf RULHQWDWLRQ RQ WKH SDUW RI KLV HPSOR\HHV ZKLOH WKH VXSHUYLVRU RI JURXS UHVSRQGHG ZLWK WKH PRVW ffSRVLWLYHf LQGLFDWRUV RI LQGLYLGXDO EHKDYLRU ,QWUDJURXS EHKDYLRU ODWHUDO UHODWLRQV 6L[ LQGLFHV FRPSULVH WKH ODWHUDO LQWUDJURXS EHKDYLRU FDWHJRU\ 7KH VXSHUYLVRUV DUH GHVFULELQJ WKH ODWHUDO UHODWLRQV ZKLFK WKH\ SHUFHLYH WR H[LVW ZLWKLQ WKHLU ZRUN JURXSV E\ UHVSRQGLQJ WR WKH TXHVWLRQQDLUH LWHPV &RQILGHQFH DQG WUXVW$OO VXSHUYLVRUV ZLWK WKH H[FHSWLRQ RI VXSHUYLVRU ZKR H[SUHVVHG ffJHQHUDOf EHKDYLRU DQG VXSHUYLVRU ZKR H[SUHVVHG QHJDWLYHf EHKDYLRU IHOW WKDW PHPEHUV RI WKHLU ZRUN JURXSV KDYH D KLJK GHJUHH RI FRQILGHQFH DQG WUXVW LQ HDFK RWKHU -RE UHODWHG FRPPXQLFDWLRQff*HQHUDOf EHKDYLRU UHJDUGLQJ MRE UHODWHG GLVFXVVLRQV FDQ EH DWWULEXWHG WR ZRUN JURXSV DQG ZKLOH WKH UHPDLQLQJ VHYHQ JURXSV DUH EHVW GHVFULEHG E\ WKH VXSHUYLVRUV DV SRVLWLYHf EHKDYLRU LQGLFDWRUV 1RQMRE UHODWHG FRPPXQLFDWLRQV/RZ GHJUHHV RI QRQMRE UHODWHG GLVFXVVLRQV WDNH SODFH ZLWKLQ JURXSV DQG *HQHUDOf EHKDYLRU GHVFULEHV JURXSV DQG 2QO\ JURXS H[KLELWV SRVLWLYHf EHKDYLRU &RRSHUDWLRQ SDWWHUQVff1HJDWLYHf EHKDYLRU LV LQGLFDWHG E\ VXSHUn YLVRU IRU KLV ZRUN JURXS LQ WKH H[WHQW RI FRRSHUDWLRQ DQG DVVLVWDQFH DPRQJ FRZRUNHUV :RUN JURXSV DQG DUH SRVLWLYHf LQ WKHLU EHKDYLRU

PAGE 65

*URXS XQLW\7KH VXSHUYLVRU RI JURXS DJDLQ KDV KLV UHVSRQVH IDOOLQJ ZLWKLQ WKH QHJDWLYHf EHKDYLRU JURXSLQJ 6L[ VXSHUYLVRUV DUH RI WKH DWWLWXGH WKDW SRVLWLYH EHKDYLRU UHJDUGLQJ LQWUDJURXS XQLW\ H[LVWV ZKLOH RQO\ RQH VXSHUYLVRUfV UHSO\ OLHV ZLWKLQ WKH JHQHUDO W\SH RI EHKDYLRU JURXSLQJ ,QWHUDFWLRQ RII WKH MRE,QIRUPDO LQWHUDFWLRQV RII WKH MRE DUH GHVFULEHG DV SRVLWLYH IRU JURXS JHQHUDO IRU JURXSV DQG DQG QHJDWLYH IRU WKH UHPDLQLQJ ILYH ZRUN JURXSV 6XPPDUL]LQJ WKH UHVSRQVHV WR WKH ODWHUDO LQWUDJURXS EHKDYLRU TXHVWLRQV VXSHUYLVRU KDG WKH KLJKHVW QXPEHU RI QHJDWLYH EHKDYLRU LQGLFDWRUV f ZKLOH VXSHUYLVRU KDG WKH PRVW SRVLWLYH UHSOLHV f ,QWUDJURXS EHKDYLRU YHUWLFDO UHODWLRQV 7HQ LQGLFHV DUH LQFOXGHG LQ WKLV FDWHJRU\ RI EHKDYLRU 7KH HLJKW VXSHUYLVRUV UHVSRQVHV DUH WKHLU SHUFHSWLRQV UHJDUGLQJ WKH YHUWLFDO UHODWLRQV WKDW H[LVW SULPDULO\ EHWZHHQ VXSHULRUV DQG VXERUGLQDWHV ZLWKLQ WKHLU ZRUN JURXSV 7UXVW DQG FRQILGHQFH GRZQZDUG6XSHUYLVRUV RI ZRUN JURXSV DQG DOO IHOW WKDW XVXDOO\ VXSHUYLVRUV KDYH WUXVW DQG FRQILGHQFH LQ VXERUGLQDWHV DOO UHVSRQVHV ZHUH f DQG WKH VXSHUYLVRU RI JURXS IHOW WKDW WKLV DOPRVW DOZD\V ZDV WKH FDVH D UHVSRQVHf $OO ILYH JURXSV DUH LQ WKH SRVLWLYH EHKDYLRU JURXSLQJ *URXSV DQG SRVVHVV JHQHUDO EHKDYLRU RULHQWDWLRQ 1R VXSHUYLVRU UHSOLHG LQ WKH PDQQHU WR DOORZ WKH UHVSRQVH WR EH WHUPHG QHJDWLYH EHKDYLRU 5HTXHVWHG LQIRUPDWLRQ6RPHWLPHV HPSOR\HHV SURYLGH DFFXUDWH DQG FRPSOHWH LQIRUPDWLRQ UHTXHVWHG E\ VXSHUYLVRUV LQ JURXSV DQG D

PAGE 66

QHJDWLYH EHKDYLRU DVSHFW 2IWHQ LV WKH VLWXDWLRQ LQ JURXSV DQG RU JHQHUDO EHKDYLRU $QG DOPRVW DOZD\V LV WKH VLWXDWLRQ LQ WKH SRVLWLYH RULHQWHG JURXSV DQG &RPPXQLFDWLRQ VFUHHQLQJ+DOI WKH ZRUN JURXSV FDQ EH GHVFULEHG DV JHQHUDO DQG WKH RWKHU IRXU DV SRVLWLYH EHKDYLRU YLVDYLV WKH VLWXDWLRQ WKDW H[LVWV ZLWKLQ WKH ZRUN JURXSV RQ YROXQWHHULQJ MREUHODWHG LQIRUPDWLRQ XSZDUG WR VXSHULRUV -RE LQIRUPDWLRQ8VXDOO\ RU DOPRVW DOZD\V GR VXERUGLQDWHV b EULQJ MRE SUREOHPV WR WKH DWWHQWLRQ LV WKH YLHZ RI WKH VXSHUYLVRUV RI ZRUN JURXSV DQG $ SRVLWLYHf EHKDYLRU LQGLFDWRU 7KH UHPDLQLQJ ZRUN JURXSV FDQ EH FODVVLILHG DV SRVVHVVLQJ JHQHUDOf EHKDYLRU +XPDQ UHODWLRQV LQIRUPDWLRQ7KH VXSHUYLVRU RI ZRUN JURXS IHOW WKDW UDUHO\ GR KLV VXERUGLQDWHV EULQJ WR KLV DWWHQWLRQ KXPDQ UHODWLRQV SUREOHPV D UHVSRQVH RI f 7KH VXSHUYLVRUV RI JURXSV DQG DOVR KDG D QHJDWLYHf GHVFULSWLRQ RI WKHLU JURXSV EXW WR D OHVVHU H[WHQW ERWK UHVSRQVHV ZHUH f *URXSV DQG SRVVHVVHG SRVLWLYHf RULHQWDWLRQ ZKLOH JURXS ZDV GHVFULEHG DV JHQHUDOf EHKDYLRU &RRSHUDWLRQ DQG WHDPZRUN7KH VHQVH RI WHDPZRUN DQG FRRSHUDWLRQ EHWZHHQ VXERUGLQDWHV DQG VXSHULRUV ZLWKLQ ZRUN JURXSV DQG ZDV GHn VFULEHG DV RQO\ VRPHWLPHV H[LVWLQJD QHJDWLYH EHKDYLRU DVSHFW 7KUHH VXSHUYLVRUV UHVSRQGHG JHQHUDOO\f HDFK UHVSRQVH ZDV f DQG VXSHUYLVRUV RI JURXSV DQG HDFK UHVSRQGHG SRVLWLYHO\ UHVSRQVHV RI DQG UHVSHFWLYHO\f $FFHSWDQFH RI LPPHGLDWH VXSHUYLVRU GHFLVLRQV2QO\ WKH VXSHUYLVRU RI JURXS UHVSRQGHG QHJDWLYHO\ f WR WKLV YDULDEOH 8VXDO WR

PAGE 67

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n UHVSRQVHV WR WKH YHUWLFDO LQWUDJURXS EHKDYLRU FDWHJRU\ ZH ILQG WKDW VXSHUYLVRU DJDLQ KDG WKH KLJKHVW QXPEHU RI QHJDWLYH UHVSRQVHV f ZLWK VXSHUYLVRUV DQG W\LQJ IRU WKH PRVW SRVLWLYH UHVSRQVHV ZLWK WHQ HDFK ,QWHUJURXS EHKDYLRU (LJKW YDULDEOHV FRPSULVH WKLV ODVW PDMRU FDWHJRU\ RI EHKDYLRU 7KH VXSHUYLVRUV DUH H[SUHVVLQJ WKHLU DWWLWXGHV YLVDYLV WKH UHODWLRQV WKDW H[LVW EHWZHHQ WKHLU ZRUN JURXSV DQG RWKHU JURXSV ZLWKLQ WKH SODQW &RQILGHQFH DQG WUXVW3RVLWLYH EHKDYLRU LV H[KLELWHG E\ ZRUN JURXSV DQG DFFRUGLQJ WR WKH VXSHUYLVRUVn SHUFHSWLRQV *URXSV DQG DUH JHQHUDO EHKDYLRU W\SHV ZKLOH WKH WZR UHPDLQLQJ JURXSV

PAGE 68

DQG DUH FKDUDFWHUL]HG DV EHLQJ QHJDWLYHf EHKDYLRUDOO\ RULHQWHG LQ WKH H[WHQW RI WUXVW DQG FRQILGHQFH ZKLFK H[LVWV EHWZHHQ ZRUN JURXSV &RPPXQLFDWLRQV DFFXUDF\7KH DFFXUDF\ DQG FRPSOHWHQHVV RI LQWHUn JURXS FRPPXQLFDWLRQV ZDV GHVFULEHG DV EHLQJ QHJDWLYH E\ VXSHUYLVRUV DQG JHQHUDO E\ DQG DQG SRVLWLYH E\ DQG &RPPXQLFDWLRQV VFUHHQLQJ$OO VXSHUYLVRUV IHOW WKDW RQO\ VRPHn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

PAGE 69

$FFHSWDQFH RI GHFLVLRQV:RUN JURXSV DQG DUH GHVFULEHG E\ WKHLU VXSHUYLVRUV DV EHLQJ ff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f UHVSRQVHV GHVFULELQJ WKHLU ZRUN JURXSV 7KH GDWD IURP 7DEOH DUH SORWWHG WR SURYLGH WKH SURILOHV )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHOfV 'HVFULSWLRQ RI (PSOR\HHVf %HKDYLRU 7KH UHVSRQVHV RI WKH IRUHPHQ DQG RWKHU VDODULHG SHUVRQQHO WR WKH EHKDYLRUDO TXHVWLRQQDLUH UHSUHVHQW WKHLU SHUFHSWLRQV UHJDUGLQJ WKH YDULRXV DVSHFWV RI HPSOR\HH EHKDYLRU 7DEOH UHSRUWV WKH DYHUDJH UHVSRQVHV RI WKHVH JURXSV RI HPSOR\HHV 7KH GLVFXVVLRQ LQ WKLV VHFWLRQ SDUDOOHOV WKDW RI WKH SUHFHGLQJ RQH

PAGE 70

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f

PAGE 71

,QGLYLGXDO EHKDYLRU f§ f§ f§ ‘ f§ W -RE LQYROYHPHQW:RUN JURXS ZDV WKH RQO\ JURXS WKDW UHVSRQGHG SRVLWLYH UHJDUGLQJ WKLV YDULDEOHWKH UHPDLQLQJ ZRUN JURXSV DOO H[KLELW D JHQHUDO EHKDYLRU RULHQWDWLRQ &RPPLWPHQW WR PHHWLQJ VWDQGDUGV*URXS IHOW WKDW RQO\ VRPHWLPHV HPSOR\HHV GR D IXOO GD\IV ZRUN D QHJDWLYH UHVSRQVH DQG ZRUN JURXS UHVSRQGHG LQ WKH RSSRVLWH GLUHFWLRQ LQ WKDW WKH\ IHOW HPSOR\HHV XVXDOO\ GR D IXOO GD\fV ZRUN D SRVLWLYH UHSO\ 7KH UHPDLQLQJ ZRUN JURXSV IHOO ZLWKLQ WKH JHQHUDO EHKDYLRU DUHD ,QLWLDWLYH7KH GHJUHH RI MRE LQLWLDWLYH VKRZQ E\ HPSOR\HHV ZDV GHVFULEHG DV PRGHUDWH E\ ZRUN JURXSV DQG SODFLQJ WKHVH JURXSV LQ JHQHUDO EHKDYLRU 7KH UHPDLQLQJ ZRUN JURXSV IHOW WKH HPSOR\HHV KDYH VKRZQ FRQVLGHUDEOH DPRXQWV RI LQLWLDWLYH WKXV SODFLQJ WKHVH JURXSV LQ WKH SRVLWLYH EHKDYLRU HQG RI WKH FRQWLQXXP 6HOILPSURYHPHQW7ZR ZRUN JURXSV DQG f UHSOLHG QHJDWLYHO\ UHJDUGLQJ WKLV YDULDEOH 2QH JURXS f IHOW WKDW FRQVLGHUDEOH DWWHPSWV DW VHOILPSURYHPHQW ZHUH HYLGHQFHG WKXV D SRVLWLYH SRVLWLRQ DQG WKH UHPDLQLQJ ZRUN JURXSV IHOO ZLWKLQ WKH JHQHUDO EHKDYLRU GHVFULSWLYH JURXSLQJ :RUNJRDO FRPPLWPHQW7KH W\SLFDO YLHZSRLQW RI WKH ZRUN JURXSV ZDV WKDW RIWHQ HPSOR\HHV DUH ZLOOLQJ WR FKDQJH WKH ZRUN SDFH WR PHHW JRDOV VL[ RI WKH HLJKW JURXSV UHSOLHG LQ WKLV IDVKLRQf 7KHLU EHKDYLRU FDQ EH GHVFULEHG DV JHQHUDO *URXSV DQG UHVSRQGHG LQ WKH SRVLWLYH D GLUHFWLRQ 1R JURXS IHOO ZLWKLQ WKH QHJDWLYH EHKDYLRU JURXSLQJ

PAGE 72

)UXVWUDWLRQ OHYHOV7KH IHHOLQJ RI IUXVWUDWLRQ ZDV GHVFULEHG DV RFFXUULQJ RIWHQ E\ ZRUN JURXSV DQG SODFLQJ WKHVH JURXSV LQ JHQHUDO EHKDYLRU 2Q WKH RWKHU KDQG ZRUN JURXSV DQG ZRXOG EH LQ WKH SRVLWLYH EHKDYLRU JURXSLQJ 1R JURXS UHVSRQGHG QHJDWLYHO\ 6HQVH RI DFKLHYHPHQW)RXU ZRUN JURXSV IHOW WKDW WKH HPSOR\HHV RIWHQ JRW VDWLVIDFWLRQ RXW RI GRLQJ D JRRG MRE 7KLV JHQHUDO EHn KDYLRU ZDV PHQWLRQHG E\ JURXSV DQG 7KH UHPDLQLQJ IRXU JURXSV UHVSRQGHG SRVLWLYH LH UHVSRQVH YDOXHV IURP WR SODFLQJ WKHVH JURXSV RQ WKH ULJKW VLGH RI WKH EHKDYLRU FRQWLQXXP $EVHQWHHLVP7KH ILUVW WKUHH JURXSV UHVSRQGHG QHJDWLYH LQ WKDW WKH\ IHOW DEVHQWHHLVP XVXDOO\ DIIHFWHG WKH RSHUDWLRQ RI WKH SODQW )RXU ZRUN JURXSV KDYH D JHQHUDO EHKDYLRU RULHQWDWLRQ DQG RQO\ RQH JURXS UHJDUGLQJ WKLV YDULDEOH FRXOG EH GHVFULEHG DV SRVLWLYH 7KLV ZDV ZRUN JURXS ZLWK D UHVSRQVH RI 7XUQRYHU2QO\ ZRUN JUFXS IHOW WKDW WXUQRYHU YHU\ RIWHQ W DIIHFWHG WKH RSHUDWLRQ RI WKH SODQW JHQHUDO EHKDYLRUf 7KH UHPDLQn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

PAGE 73

-RE UHODWHG FRPPXQLFDWLRQ7KH ZRUN JURXSV ZHUH HYHQO\ VSOLW EHWZHHQ JHQHUDO DQG SRVLWLYHf EHKDYLRU RULHQWDWLRQ ZKHQ LW FRPHV WR WKLV YDULDEOH WKH ORZHVW UHVSRQVH EHLQJ E\ ZRUN JURXS DQG WKH KLJKHVW SRVLWLYH UHVSRQVH RI EHLQJ PDGH E\ JURXSV DQG 1RQMRE UHODWHG FRPPXQLFDWLRQ$OO ZRUN JURXSV UHVSRQGHG LQ JHQHUDO EHKDYLRU WHUPV ZLWK WKH H[FHSWLRQ RI JURXS nV UHVSRQVH YDOXH RI SODFLQJ WKHPVHOYHV LQ WKH SRVLWLYH EHKDYLRU JURXSLQJ &RRSHUDWLRQ SDWWHUQV)RU ZRUN JURXSV DQG WKHUH H[LVWV D XVXDO DPRXQW RI FRRSHUDWLRQ DPRQJ WKH JURXSVn FRZRUNHUV SODFLQJ WKHVH WZR JURXSV LQ WKH SRVLWLYH EHKDYLRU SRVLWLRQ 7KH UHPDLQLQJ JURXSV GHVFULEHG WKH GHJUHH RI FRRSHUDWLRQ DV H[LVWLQJ RIWHQ D UHVSRQVH E\ JURXS UHSUHVHQWLQJ WKH ORZHVW YDOXHf WR RQH RI YHU\ RIWHQ EHLQJ WKH FDVH D JHQHUDO EHKDYLRU UHSO\ *URXS XQLW\$ KLJK GHJUHH RI ZRUN JURXS PHPEHU XQLW\ H[LVWV LQ VL[ ZRUN JURXSV *URXSV DQG H[KLELW D UHODWLYHO\ ORZHU GHJUHH RI XQLW\ D JHQHUDO EHKDYLRU RULHQWDWLRQ WKDQ WKH VL[ RWKHU JURXSV ZKLFK FDQ EH GHSLFWHG DV SRVLWLYH EHKDYLRU ,QWHUDFWLRQ RII WKH MRE2QO\ VRPHWLPHV GR HPSOR\HHV PHHW LQIRUn PDOO\ RII WKH MRE DFFRUGLQJ WR WKH UHVSRQVHV RI ILYH ZRUN JURXSV 7KHVH UHSOLHV SODFH WKH ILYH JURXSV LQ WKH QHJDWLYH EHKDYLRU HQG RI WKH FRQWLQXXP 7KUHH ZRUN JURXSV DQG UHVSRQGHG LQ D JHQHUDO EHKDYLRU RULHQWDWLRQ ZKLOH QR JURXS UHVSRQGHG LQ D PDQQHU WR SODFH WKHP LQ WKH SRVLWLYH JURXSLQJ

PAGE 74

,QWUDJURXS EHKDYLRU YHUWLFDO UHODWLRQV 7UXVW DQG FRQILGHQFH GRZQZDUG:RUN JURXSV DQG H[SUHVV D JHQHUDO EHKDYLRU DWWLWXGH LQ WKDW WKH\ IHOW VXSHUYLVRUV RIWHQ KDYH WUXVW DQG FRQILGHQFH LQ VXERUGLQDWHV 7KH RWKHU VL[ ZRUN JURXSV UHVSRQGHG LQ D PRUH SRVLWLYH EHKDYLRU DWWLWXGH YLVDYLV WKLV YDULDEOH 7UXVW DQG FRQILGHQFH XSZDUG7KH GHJUHH RI WUXVW DQG FRQILGHQFH VKRZQ E\ VXERUGLQDWHV LQ WKHLU VXSHULRUV ZDV GHVFULEHG E\ ZRUN JURXSV DQG LQ WHUPV RI D JHQHUDOf EHKDYLRU SDWWHUQ 7KH RWKHU ILYH ZRUN JURXSV H[SUHVVHG D KLJKHU GHJUHH RI WUXVW EHLQJ WKH FDVH 7KHVH JURXSV ZRXOG IDOO ZLWKLQ WKH SRVLWLYHf JURXSLQJ 5HTXHVWHG LQIRUPDWLRQ:RUN JURXS UV DYHUDJH UHVSRQVH LQGLFDWHV D QHJDWLYH EHKDYLRU RULHQWDWLRQ LQ WKDW WKH\ IHOW HPSOR\HHV RQO\ VRPHWLPHV SURYLGHG DFFXUDWH UHTXHVWHG GDWD WR VXSHUYLVRUV *URXSV DQG UHSOLHG WKDW RIWHQ WKLV ZDV WKH FDVH JHQHUDO EHKDYLRU ZKLOH WKH UHPDLQLQJ ILYH ZRUN JURXSVrA UHSOLHV ZRXOG KDYH WR EH GHSLFWHG DV SRVLWLYH EHKDYLRU LQGLFDWRUV &RPPXQLFDWLRQ VFUHHQLQJ7KH H[WHQW RI LQWHQWLRQDO ZLWKKROGLQJ DQG GLVWRUWLRQ RI LQIRUPDWLRQ E\ VXERUGLQDWHV LV GHVFULEHG DV H[LVWLQJ RIWHQ E\ ZRUN JURXSV DQG 7KH VLWXDWLRQ LV RQH RI VRPHWLPHV WR UDUHO\ H[LVWLQJ DV H[SUHVVHG E\ WKH UHPDLQLQJ ILYH ZRUN JURXSV WKDW OLH ZLWKLQ WKH SRVLWLYH SRUWLRQ RI WKH EHKDYLRU FRQWLQXXP A:LWKLQ WKH FDWHJRU\ RI LQWUDJURXS EHKDYLRU YHUWLFDO UHODWLRQV ZRUN JURXS rV UHVSRQVH WR WKLV YDULDEOH LV WKH RQO\ QHJDWLYH EHKDYLRU LQGLFDWRU H[SUHVVHG E\ WKH HLJKW ZRUN JURXSV WR WKH WHQ YDULDEOHV FRPSULVLQJ WKH FDWHJRU\

PAGE 75

-RE LQIRUPDWLRQ ,Q HYDOXDWLQJ ZKHWKHU VXERUGLQDWHV EULQJ MRE SUREOHPV WR WKH DWWHQWLRQ RI WKHLU VXSHUYLVRUV DOO HLJKW ZRUN JURXSV IDOO ZLWKLQ WKH SRVLWLYHf EHKDYLRU DUHD +XPDQ UHODWLRQV LQIRUPDWLRQ*HQHUDO EHKDYLRU FKDUDFWHUL]HV DOO ZRUN JURXSV YLVDYLV WKLV YDULDEOH 7KH VXERUGLQDWHVr YROXQWHHULQJ KXPDQ UHODWLRQV LQIRUPDWLRQ ZDV GHVFULEHG DV RIWHQ EHLQJ WKH FDVH &RRSHUDWLRQ DQG WHDPZRUN+DOI WKH ZRUN JURXSV UHVSRQGHG LQ D JHQHUDO EHKDYLRU ZD\ ZKLOH WKH UHPDLQLQJ IRXU ZRXOG KDYH WR EH SODFHG LQ WKH SRVLWLYH EHKDYLRU JURXSLQJ UHJDUGLQJ WKH GHJUHH WKDW FRRSHUDWLRQ DQG WHDPZRUN H[LVWV EHWZHHQ VXSHUYLVRUV DQG VXERUGLQDWHV $FFHSWDQFH RI LPPHGLDWH VXSHUYLVRU GHFLVLRQV:RUN JURXS OrV DYHUDJH UHVSRQVH RI SODFHV LW LQ WKH JHQHUDO EHKDYLRU JURXSLQJ ZKLOH WKH RWKHU VHYHQ ZRUN JURXSV UHVSRQGHG LQ D PDQQHU WR DOORZ WKHLU SODFHPHQW LQ WKH SRVLWLYH EHKDYLRU DUHD $FFHSWDQFH RI KLJKHU OHYHO PDQDJHPHQW GHFLVLRQV)LYH ZRUN JURXSV FDQ EH GHVFULEHG DV SRVVHVVLQJ D JHQHUDO EHKDYLRU DWWLWXGH WRZDUGV WKLV YDULDEOH ZKLOH WKH UHPDLQLQJ WKUHH ZRUN JURXSVr UHVSRQVHV SODFH WKHP LQ WKH SRVLWLYH EHKDYLRU JURXSLQJ $FFHSWDQFH RI VWDII JURXS GHFLVLRQV:RUN JURXSV DQG UHVSRQGHG DQG UHVSHFWLYHO\ WR WKLV YDULDEOH D JHQHUDO EHKDYLRU DWWLWXGH ZKLOH WKH UHPDLQLQJ ZRUN JURXSV H[SUHVVHG WKDW HPSOR\HHV XVXDOO\ DFFHSWHG GHFLVLRQV RI VWDII JURXSV 6XFK UHVSRQVHV SODFH WKHVH JURXSV LQ WKH SRVLWLYH DUHD RI WKH EHKDYLRU FRQWLQXXP

PAGE 76

,QWHUJURXS EHKDYLRU &RQILGHQFH DQG WUXVW$OO GHJUHH RI LQWHUJURXS FRQILGHQFH DQG WUXVW WKDW ZDV GHVFULEHG UDQJHG IURP ZRUN JURXS 7V ffVRPHWLPHV H[LVWn LQJ D UHVSRQVHf WR DOPRVW DOZD\V EHLQJ WKH FDVH DV H[SUHVVHG E\ ZRUN JURXS UHVSRQVHf )ROORZLQJ WKH JURXSLQJ FODVVLILFDWLRQ ZKLFK ZH DUH XVLQJ ZRUN JURXSV DQG ZRXOG EH JHQHUDO EHKDYLRU ZKLOH JURXSV DQG DUH SRVLWLYH EHKDYLRU RULHQWHG &RPPXQLFDWLRQV DFFXUDF\:RUN JURXSV DQG H[SUHVVHG D SRVLWLYH EHKDYLRU DWWLWXGH UHJDUGLQJ WKH DFFXUDF\ DQG FRPSOHWHQHVV RI LQWHUn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f EHWZHHQ GHSDUWPHQWV ZLWK WKH UHPDLQLQJ JURXSV IDOOLQJ VOLJKWO\ ORZHU LQWR WKH JHQHUDO EHKDYLRU DUHD 7HDP VSLULW7KH UHVSRQVHV RI ZRUN JURXSV DQG DQG UHVSHFWLYHO\f SODFH WKHP LQ WKH SRVLWLYH JURXSLQJ ZKLOH WKH

PAGE 77

RWKHU ILYH JURXSVr JHQHUDO EHKDYLRU UHVSRQVHV LQGLFDWH D ORZHU DWWLWXGH RULHQWDWLRQ UHJDUGLQJ WKH H[WHQW RI LQWHUJURXS WHDP VSLULW $FFHSWDQFH RI GHFLVLRQV 8VXDOO\ SRVLWLYHf EHKDYLRUf ZRUN JURXSV DQG DFFHSW RWKHU JURXSVr GHFLVLRQV nf*HQHUDO EHKDYLRU EHVW GHVFULEHV WKH RWKHU JURXSVn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

PAGE 78

&+$37(5 ,9 '$7$ '(6&5,37,21 2) 3/$17 % ,QWURGXFWLRQ 7KH GHVFULSWLRQ RI 3ODQW % EDVHG XSRQ WKH GDWD FROOHFWHG LV SUHn VHQWHG LQ WKLV FKDSWHU 3ODQW % LV GHVFULEHG LQ WHUPV RI WKH SULPDU\ VWUXFWXUDO PHGLDWLQJ VWUXFWXUDO OHDGHUVKLS DQG EHKDYLRUDO IDFWRUV WKDW H[LVWHG GXULQJ WKH VWXG\ 7KH JORVVDU\ ZKLFK IROORZV WKH ILQDO FKDSWHU SURYLGHV WKH QHFHVVDU\ GHILQLWLRQV DQG RSHUDWLRQDO PHDVXUHV RI WKH VWUXFWXUDO DQG OHDGHUVKLS YDULDEOHV 7KH WDEXODU GDWD DUH DXJn PHQWHG E\ VXPPDU\ SURILOHV GHSLFWLQJ WKH UHVSRQVHV WR WKH YDULRXV YDULDEOHV 3ODQW % LV VWUXFWXUHG LQWR VL[ GHSDUWPHQWV RU ZRUN JURXSV DQG EDVLFDOO\ WZR PDQDJHPHQW OHYHOV WKH IRUHPHQ DQG WKH VXSHUYLVRU\ OHYHOV $ WRWDO RI WZHQW\RQH VXSHUYLVRUV IRUHPHQ DQG RWKHU VDODULHG SHUVRQQHO FRPSULVHG WKH UHVHDUFK VWXG\ SRSXODWLRQ 7KH SODQW PDQDJHU LV QRW LQFOXGHG LQ WKH VWXG\ DV D UHVSRQGHQW DOWKRXJK KLV OHDGHUVKLS VW\OH ZDV GHVFULEHG E\ KLV VXERUGLQDWHV )LJXUH GHSLFWV WKH RUJDQLn ]DWLRQ VWUXFWXUH RI 3ODQW % 7KH VXSHUYLVRU RI ZRUN JURXS SDUWLFLSDWHG LQ WKH VWXG\ E\ UHVSRQGLQJ WR WKH VWUXFWXUDO DQG OHDGHUVKLS TXHVWLRQQDLUHV 6LQFH WKH VWXG\ ZDV FRQILQHG WR PDQDJHPHQW DQG RWKHU VDODULHG SHUVRQQHO GHVFULSWLRQ RI WKH OHDGHUVKLS VW\OH RI VXSHUYLVRU DQG KLV SHUFHSWLRQV UHJDUGLQJ WKH EHKDYLRUDO IDFWRUV H[LVWLQJ ZLWKLQ KLV ZRUN JURXS ZDV QRW D LQ NHHSLQJ ZLWK WKH UHVHDUFK GHVLJQ

PAGE 79

)RUHPDQ 3ODQW 0DQDJHU 6XSHUYLVRU :RUN *URXS 6XSHUYLVRU :RUN *URXS 6XSHUYLVRU :RUN *URXS 6XSHUYLVRU :RUN *URXS 6XSHUYLVRU :RUN *URXS 6XSHUYLVRU :RUN *URXS )RUHPDQ )RUHPDQ )RUHPDQ L )RUHPDQ )RUHPDQ )RUHPDQ )RUHPDQ )RUHPDQ )RUHPDQ &OHUN &OHUN )RUHPDQ &OHUN )RUHPDQ )LJ 2UJDQL]DWLRQ &KDUW 3ODQW %

PAGE 80

3ULPDU\ 6WUXFWXUDO 9DULDEOHV RI 3ODQW % 6L]H ZRUN IORZ VSDWLDOSK\VLFDOWHPSRUDO IDFWRUV ZRUN GHPDQGV DQG KHXULVWLFV FRPSULVH WKH SULPDU\ VWUXFWXUDO YDULDEOHV WKDW DUH GHVFULEHG LQ WKLV VHFWLRQ 7DEOH UHSUHVHQWV WKH DYHUDJH UHVSRQVHV WR WKH TXHVWLRQQDLUH LWHPV FRYHULQJ SULPDU\ VWUXFWXUDO HOHPHQWV RI 3ODQW % 6L]H :RUN JURXS ZLWK WZR OHYHOV LV WKH ODUJHVW RI WKH VL[ GHSDUWn PHQWV LQ WKH SODQW $OWKRXJK LW LV ODUJHU WKDQ WKH RWKHU ZRUN JURXSV DOO VL[ JURXSV FDQ EH GHVFULEHG DV VPDOO LQ VL]H :RUN )ORZ 7KH H[WHQW RI LQSXWRXWSXW UHODWLRQVKLSV WKDW H[LVW ZLWKLQ DQG DPRQJ WKH ZRUN JURXSV FDQ EH GHVFULEHG LQ WHUPV RI D FRQWLQXXP UDQJLQJ IURP QRQLQWHJUDWHG WR LQWHJUDWHG ZRUN IORZ ,QWUDJURXS ZRUN IORZ :RUN JURXS KDV WKH OHDVW ZRUN IORZ LQWHJUDWLRQ RI WKH VL[ ZRUN JURXSV D UHVSRQVHf ,WV PHPEHUV DUH PRGHUDWHO\ XQUHODWHG WR HDFK RWKHU DV IDU DV WKH ZRUN IORZ H[LVWLQJ ZLWKLQ WKHLU JURXS LV FRQFHUQHG b 7KH UHPDLQLQJ ILYH JURXSV DUH EHVW GHVFULEHG DV KDYLQJ SDUWLDO LQWHJUDn WLRQ RI ZRUN IORZV ZLWKLQ WKHLU UHVSHFWLYH GHSDUWPHQWV ,QWHUJURXS ZRUN IORZ 'DWD ZHUH FROOHFWHG IRU RQO\ WKH LPSRUWDQW LQWHUJURXS UHODWLRQV H[LVWLQJ ZLWK 3ODQW % 7KHVH ZHUH HVWDEOLVKHG GXULQJ WKH LQLWLDO REVHUn YDWLRQ DQG LQWHUYLHZ VHVVLRQV SULRU WR GDWD FROOHFWLRQ 7KH HOLPLQDWLRQ RI UHVSRQVHV IURP WKH OHDVW LPSRUWDQW UHODWLRQVKLSV UHVXOWHG LQ WKH HPSW\ FHOOV RI 7DEOH

PAGE 81

7$%/( 3/$17 % $9(5$*( 5(63216( 72 35,0$5< 6758&785$/ 48(67,211$,5( ,7(06 %< 9$5,$%/( $1' :25. *5283 9DULDEOH f :RUN URXS L 6L]H :RUN )ORZ ,QWUDJURXS ,QWHUJURXS :RUN *URXS f§ f§ L} L} f§ f§ 9 f§ f§ LL LL f§ LL LL A f§ f§ LL LW J f§ f§ 637 )DFWRUV ,QWUDJURXS ,QWHUJURXS :RUN *URXS f§ LL Q f§ f§ f§ LL LL A f§ f§ LL LL r ,, ,, &M f§ f§ f§ ,, ,, f§ f§ f§ f§ :RUN 'HPDQGV +HXULVWLFV e 7KH VL]H DYHUDJH UHVSRQVHV DUH DUULYHG DW E\ XVLQJ 7DEOH ZKLFK DSSHDUV LQ WKH JORVVDU\

PAGE 82

7KH GHJUHH RI ZRUN IORZ LQWHJUDWLRQ LV KLJKHVW EHWZHHQ JURXSV DQG D SDUWLDOO\ LQWHJUDWHG LQWHUJURXS ZRUN IORZ f DQG WKH ZRUN IORZ UHODWLRQV EHWZHHQ JURXSV DQG LV WKH ORZHVW DW RQO\ PRGHUDWHO\ LQWHJUDWHG &RQVLGHULQJ WKH H[WHQW RI LQWHUJURXS ZRUN IORZ IRU DOO GHSDUWPHQWV ZLWKLQ 3ODQW % LW FDQ EH VDLG WKDW SDUWLDO LQWHJUDWLRQ RI WKH ZRUN IORZV H[LVWV LQ WKH SODQW 6SDWLDO3K\VLFDO7HPSRUDO )DFWRUV 7KH ZRUN JURXSV FRQFHQWUDWLRQ RU GLVSHUVHPHQW ZHUH PHDVXUHG IRU LQWUDDQG LQWHUJURXS UHODWLRQV ,QWUDJURXS VSW IDFWRUV 7KH PHPEHUV RI JURXSV DQG DUH IDLUO\ GLVSHUVHG IURP HDFK RWKHU UHVSRQVHV DQG UHVSHFWLYHO\f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

PAGE 83

+HXULVWLFV 7KH ODVW YDULDEOH WR EH GHVFULEHG LQ WKH PDMRU FDWHJRU\ RI SULPDU\ VWUXFWXUDO LV KHXULVWLFV WKH H[WHQW RQH LV DEOH WR SUHGLFW WKH RXWn FRPH RI DFWLRQV RU GHFLVLRQV $OO ZRUN JURXSV LQ 3ODQW % KDYH WKHLU DFWLRQV RU GHFLVLRQV SUHGLFWDEOH WR D JUHDW H[WHQW *URXS KDV WKH JUHDWHVW GHJUHH RI SUHGLFWDELOLW\ f ZKLOH *URXS WKH OHDVW DW )LJXUHV WKURXJK VHH $SSHQGL[ (f VXPPDUL]H WKH GDWD IURP 7DEOH LQ D SURILOH IRU HDFK RI WKH ZRUN JURXSV 7KH PHGLDWLQJ VWUXFn WXUDO YDULDEOHV ZKLFK ZLOO EH GLVFXVVHG LQ WKH QH[W VHFWLRQ DUH DOVR LQFOXGHG LQ )LJXUHV WKURXJK 0HGLDWLQJ 6WUXFWXUDO 9DULDEOHV RI 3ODQW )RUPDO DXWKRULW\ UHODWLRQVKLSV FRQWURO V\VWHP DQG LQIRUPDWLRQ V\VWHP DUH WKH HOHPHQWV RI WKH PHGLDWLQJ VWUXFWXUDO YDULDEOHV 'DWD REWDLQHG IRU WKH VXEYDULDEOHV RI IRUPDO DXWKRULW\ DUH UHSRUWHG EXW WKH GLVFXVVLRQ LV LQ WHUPV RI WKH PDLQ YDULDEOH 7DEOH UHSRUWV WKH DYHUDJH UHVSRQVHV WR WKH TXHVWLRQQDLUH E\ WKH ZRUN JURXSV RI 3ODQW % )RUPDO $XWKRULW\ 7KH IRUPDO DXWKRULW\ UHODWLRQVKLSV WKDW H[LVW IRU DOO ZRUN JURXSV DUH ODUJHO\ XQVSHFLILHG RU IDLUO\ GLIIXVH 7KH UHVSRQVH YDOXHV UDQJHG IURP D ORZ RI JURXS f WR D KLJK RI JURXSV DQG f &RQWURO 6\VWHP 7KH IRUPDO V\VWHP IRU HYDOXDWLQJ SHUIRUPDQFH PD\ UDQJH IURP DQ LQVWLWXWLRQDO W\SH QR IRUPDO VSHFLILFDWLRQV HVWDEOLVKHG WR RQH ZKHUH D IRUPDO LQGLYLGXDO SHUIRUPDQFH PHDVXULQJ V\VWHP H[LVWV :RUN

PAGE 84

JURXSV DQG KDYH D IDLUO\ ZHOO GHILQHG LQGLYLGXDO FRQWURO V\VWHP *URXSV DQG FDQ EH FKDUDFWHUL]HG DV SRVVHVVLQJ D SDUWLDOO\ GHILQHG V\VWHP WR FRQWURO PHPEHUV7 SHUIRUPDQFH ZLWK RQO\ JURXS WHQGLQJ WRZDUG DQ LQVWLWXWLRQDO V\VWHP UHVSRQVH RI f ZKHUH WKH VWDQGDUGV PHDVXULQJ LQVWUXPHQWV DQG WKH DOORFDWLRQ RI UHZDUGV SHQDOWLHV DUH OHVV FOHDUO\ HVWDEOLVKHG 7$%/( 3/$17 % $9(5$*( 5(63216( 72 0(',$7,1* 6758&785$/ 48(67,211$,5( ,7(06 %< 9$5,$%/( $1' :25. *5283 9DULDEOH :RUN UOr28S L )RUPDO $XWKRULW\ 'HOHJDWLRQ /HYHOV 'HSDUWPHQWDWLRQ &RQWURO 6\VWHP ,QIRUPDWLRQ 6\VWHP ,QWUDJURXS ,QWHUJURXS 9HUWLFDO L ,QIRUPDWLRQ 6\VWHP 7KH LQIRUPDWLRQ V\VWHP WKH IRUPDO QHWZRUN RI UHFHLYLQJ DQG WUDQVPLWWLQJ FHQWHUV DQG WKH FRPPXQLFDWLRQ UHODWLRQVKLSV IRU 3ODQW % ZLOO EH GLVFXVVHG IURP WKH VWDQGSRLQW RI WKUHH UHODWLRQVKLSV f LQWUDn JURXS f LQWHUJURXS DQG f YHUWLFDO

PAGE 85

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b WLRQ VLPSOHFRPSOH[ V\VWHP ([FOXGLQJ JURXS DOO ZRUN JURXSV KDYH EDVLFDOO\ VLPLODU LQWUDJURXS LQWHUJURXS DQG YHUWLFDO LQIRUPDWLRQ V\VWHPV )LJXUHV WKURXJK LQFOXGHG LQ $SSHQGL[ (f GHSLFW WKH VLPLODUn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

PAGE 86

3ODQW 0DQDJHUfV /HDGHUVKLS 6W\OH 7DEOH UHSRUWV WKH DYHUDJH UHVSRQVHV RI VL[ VXSHUYLVRUV WR WKH OHDGHUVKLS TXHVWLRQQDLUH GLUHFWHG DW HYDOXDWLQJ WKH SODQW PDQDJHU 7KH OHDGHUVKLS VW\OH RI WKH SODQW PDQDJHU LV GHVFULEHG XVLQJ WKH WZHOYH GLPHQVLRQV RI OHDGHUVKLS 5HSUHVHQWDWLRQ 7KH VL[ VXSHUYLVRUV SHUFHSWLRQ RI WKH SODQW PDQDJHU LV WKDW KH XVXDOO\ SURPRWHV WKH LQWHUHVWV RI WKH VXSHUYLVRUV WR KLJKHU PDQDJHn PHQW 7KH DYHUDJH UHVSRQVH RI LV RQ WKH GHPRFUDWLF HQG RI WKH OHDGHUVKLS FRQWLQXXP ,QWHUDFWLRQ *HQHUDOO\ WKH SODQW PDQDJHU HQFRXUDJHV VXSHUYLVRUV WR PHHW WRJHWKHU WR ZRUN RXW FRPPRQ SUREOHPV PRUH WKDQ HQFRXUDJLQJ LQWHUDFWLRQ ZLWK KLPVHOI +LV RULHQWDWLRQ LV WRZDUG ODWHUDO LQWHUDFWLRQ DPRQJ WKH VXSHUYLVRUV 6WDQGDUGV 7\SLFDOO\ WKH SODQW PDQDJHU DOORZV WKH VXSHUYLVRUV WR VHW WKHLU RZQ SHUIRUPDQFH VWDQGDUGV ZKLOH DW WKH VDPH WLPH KH HPSKDVL]HV WKH n QHHG WR HVWDEOLVK UHODWLYHO\ KLJK VWDQGDUGV 7KH VXSHUYLVRUV SHUn FHSWLRQ LV WKDW PRGHUDWHO\ ORZ D UHVSRQVH RI f VWDQGDUGV DUH HQFRXUDJHG *RDO HPSKDVLV 7KH SODQW PDQDJHU LV SHUFHLYHG DV EHLQJ RULHQWHG WRZDUG SODFLQJ P UHVSRQVLELOLW\ IRU JHWWLQJ D MRE GRQH RQ WKH JURXS DV RSSRVHG WR LQn GLYLGXDOV 7KH DYHUDJH UHVSRQVH RI E\ WKH VL[ VXSHUYLVRUV LV GHVFULSWLYH RI D JHQHUDO OHDGHUVKLS VW\OH

PAGE 87

7$%/( 3/$17 % $9(5$*( 5(63216( 2) 6,; 6(&21' /(9(/ 683(59,6256 72 /($'(56+,3 48(67,211$,5( (9$/8$7,1* 7+( 3/$17 0$1$*(5n6 /($'(56+,3 67
PAGE 88

3DUWLFLSDWLRQ 8VXDOO\ WKH SODQW PDQDJHU VROLFLWV FRPPHQWV DQG VXJJHVWLRQV IURP WKH VXSHUYLVRUV RQ MRE UHODWHG PDWWHUV 7KH\ YLHZ KLP DV HQFRXUDJLQJ RSHQ GLVFXVVLRQ DQG SDUWLFLSDWLRQ UHJDUGLQJ FRPPRQ SUREOHPV D UHVSRQVH RI LQGLFDWLQJ UDWKHU H[WHQVLYH XVH RI SDUWLFLSDWLRQ 'LUHFWLRQ 7KH SODQW PDQDJHU LV SHUFHLYHG DV XWLOL]LQJ JHQHUDO GLUHFWLRQ f +H PRUH RU OHVV DOORZV WKH VXSHUYLVRUV WR KDQGOH WKHLU RZQ SUREOHPV ZLWK RQO\ RFFDVLRQDO GLUHFWLRQ DQG JXLGDQFH 5XOH RULHQWDWLRQ *HQHUDOO\ WKH SODQW PDQDJHU VWUHVVHV WKH QHFHVVLW\ RI DGKHULQJ WR SROLFLHV SURFHGXUHV DQG UXOHV EXW VWLOO DOORZV IRU D FHUWDLQ GHJUHH RI IOH[LELOLW\ DQG SHUVRQDO MXGJPHQW 0RWLYDWLRQ %DVLFDOO\ WKH SODQW PDQDJHU UHOLHV XSRQ WKH XVH RI UHZDUGV WR PRWLYDWH WKH VXSHUYLVRUV LQVWHDG RI WKH WKUHDW RI SXQLVKPHQW $ UHVSRQVH RI GRHVQnW LQGLFDWH D KLJK GHJUHH RI UHZDUGV HPSKDVLV EXW GRHV SRLQW RXW WKH RULHQWDWLRQ WRZDUG UHZDUGV DQG DZD\ IURP SXQLVKPHQWV DV D PRWLYDWRU 7HFKQLFDO TXDOLILFDWLRQV 5DWKHU H[WHQVLYH WHFKQLFDO TXDOLILFDWLRQV DUH SRVVHVVHG E\ WKH SODQW PDQDJHU f +LV SURIHVVLRQDO WUDLQLQJ ZRUN H[SHULHQFH DQG WHFKQLFDO NQRZKRZ UHVXOW LQ D KLJK GHJUHH RI FRPSHWHQF\ $FWLRQ RULHQWDWLRQ :KLOH WKH SODQW PDQDJHU LV GHVFULEHG DV EHLQJ TXLWH DFWLYH LQ WKH PDQQHU LQ ZKLFK KH KDQGOHV KLV MRE WKH VXSHUYLVRUVn SHUFHSWLRQ

PAGE 89

LV WKDW KH SRVVHVVHV RQO\ D PRGHUDWHO\ KLJK GHJUHH RI FRPSHWHQF\ f 3UREOHP VNLOOV 7KH UHDVRQLQJ VNLOOV FRQFHSWXDO DELOLW\ LQQRYDWLYHQHVV DQG FRPSUHKHQVLRQ RI WKH SODQW PDQDJHU ZHUH UDWHG WKH ORZHVW f RI WKH IRXU PLVFHOODQHRXV OHDGHUVKLS GLPHQVLRQV 7KH UHVSRQVHV LQGLFDWH D PRGHUDWH FRPSHWHQF\ OHYHO 3HUVRQDO DELOLWLHV DQG RULHQWDWLRQ 7KH VXSHUYLVRUV UHVSRQGHG WR VHYHQ TXHVWLRQQDLUH LWHPV LQ HYDOXn DWLQJ WKLV DVSHFW RI WKH SODQW PDQDJHUfV OHDGHUVKLS VW\OH 7KH DYHUDJH UHVSRQVH YDOXH RI LQGLFDWHV D SRVLWLYH RULHQWDWLRQ UHVXOWLQJ LQ D KLJK FRPSHWHQF\ OHYHO )LJXUH LQFOXGHG DV D SDUW RI $SSHQGL[ (f UHSUHVHQWV WKH OHDGHUn VKLS SURILOH RI WKH SODQW PDQDJHU EDVHG XSRQ WKH DYHUDJH UHVSRQVHV RI WKH VL[ VXSHUYLVRUV UHSRUWHG LQ 7DEOH )URP WKLV VXPPDU\ SURILOH WKH SODQW PDQDJHUfV OHDGHUVKLS VW\OH FDQ EH GHVFULEHG DV f ffGHPRn FUDWLFf IRU RQO\ RQH GLPHQVLRQ UHSUHVHQWDWLRQ f D ffJHQHUDOf OHDGHUVKLS VW\OH ZLWK D GHILQLWH WHQGHQF\ WRZDUG WKH ffGHPRFUDWLFf HQG RI WKH FRQWLQXXP IRU WKH UHPDLQLQJ VHYHQ GLPHQVLRQV LQ WKH OHDGHUVKLS IXQFWLRQV DUHD DQG f KLV FRPSHWHQF\ LV YLHZHG DV PRVWO\ RQ WKH ORZ HQG RI WKH ffKLJK FRPSHWHQF\f DUHD ZLWK WKH OHYHO RI SUREOHP VNLOOV GHVFULEHG DV HTXDWLQJ WR D ffPRGHUDWHf GHJUHH RI FRPSHWHQF\ 6XSHUYLVRUVf /HDGHUVKLS 6W\OHV 7DEOH UHSRUWV WKH DYHUDJH UHVSRQVHV RI WKH IRUHPHQ DQG RWKHU VDODULHG SHUVRQQHO WR WKH OHDGHUVKLS TXHVWLRQQDLUH HYDOXDWLQJ WKHLU LPPHGLDWH VXSHULRU 2QO\ ILYH ZRUN JURXS VXSHUYLVRUV ZHUH HYDOXDWHG

PAGE 90

7$%/( 3/$17 % $9(5$*( 5(63216( 2) )25(0(1 $1' 27+(5 6$/$5,(' 3(56211(/ 72 /($'(56+,3 48(67,211$,5( (9$/8$7,1* 7+(,5 ,00(',$7( 683(5,25n6 /($'(56+,3 67
PAGE 91

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f 6WDQGDUGV 6XSHUYLVRU LV GHVFULEHG DV HVWDEOLVKLQJ PRGHUDWHO\ ORZ VWDQGDUGV IRU KLV JURXS f ZKLOH WKH UHPDLQLQJ IRXU VXSHUYLVRUV DUH GHSLFWHG DV HPSOR\LQJ DQG HPSKDVL]LQJ PRGHUDWH VWDQGDUGV *RDO HPSKDVLV 2QO\ VXSHUYLVRU LV GHVFULEHG DV HPSKDVL]LQJ D KLJK GHJUHH RI LQGLYLGXDO SHUIRUPDQFH DQG FRPSHWLWLRQ f WKH ILUVW LQVWDQFH RI DQ

PAGE 92

DXWRFUDWLF OHDGHUVKLS VW\OH 7KH RWKHU ZRUN JURXSV GHVFULEH WKHLU VXSHULRUV DV HQFRXUDJLQJ D FRPELQDWLRQ RI JURXS DQG LQGLYLGXDO JRDOV 7KH YDOXHV UDQJHG DFURVV WKH FHQWHU RI WKH PHDVXUHPHQW FRQWLQXXP IURP WR f§ RU D JHQHUDO OHDGHUVKLS VW\OH 3DUWLFLSDWLRQ 6XSHUYLVRU HPSOR\V UDWKHU H[WHQVLYH SDUWLFLSDWLRQ LQ DUULYLQJ DW D GHFLVLRQ f 7KH UHPDLQLQJ VXSHUYLVRUV DUH SHUFHLYHG DV EHLQJ VRPHZKDW VHOHFWLYH LQ WKH H[WHQW WR ZKLFK WKH\ DOORZ VXERUGLQDWHV WR SDUWLFLSDWH LQ WKH GHFLVLRQ SURFHVV 'LUHFWLRQ b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f LQ PRWLYDWLQJ HPSOR\HH $OWKRXJK DOO ILYH VXSHUYLVRUV HPSOR\ D JHQHUDO OHDGHUVKLS VW\OH VRPH OHDQ WRZDUG HLWKHU UHZDUGV VXSHUYLVRUV DQG ZLWK UHVSRQVH YDOXHV

PAGE 93

DQG UHVSHFWLYHO\f RU SXQLVKPHQW VXSHUYLVRU DQG ZLWK UHVSRQVHV RI DQG f DV PHDQV WR PRWLYDWH WKHLU VXERUGLQDWHV 7HFKQLFDO TXDOLILFDWLRQV 3URIHVVLRQDO WUDLQLQJ ZRUN H[SHULHQFH DQG WHFKQLFDO NQRZKRZ ZHUH GHVFULEHG DV YHU\ H[WHQVLYH IRU VXSHUYLVRUV D UHVSRQVHf f DQG f :RUN JURXS GHVFULEHG WKHLU VXSHUYLVRU DV SRVVHVVLQJ D PRGHUDWHO\ KLJK GHJUHH RI FRPSHWHQF\ f ZKLOH VXSHUn YLVRU ZDV GHVFULEHG E\ KLV VXERUGLQDWHV DV RQO\ PRGHUDWHO\ FRPSHWHQW UHJDUGLQJ WHFKQLFDO TXDOLILFDWLRQV DVVRFLDWHG ZLWK WKH OHDGHUVKLS IXQFWLRQ D UHVSRQVHf $FWLRQ RULHQWDWLRQ 7KH DYHUDJH UHVSRQVHV RI WKH VXERUGLQDWHV RI VXSHUYLVRU WR WKH TXHVWLRQV WKDW GHVFULEHG KLV DSSURDFK WR KLV MRE LH KLV KDQGOLQJ RI GHFLVLRQV DQG HPHUJHQFLHV ZRUN FRPPLWPHQW HQWKXVLDVP GULYH HWF LQGLFDWHG D YHU\ VOLJKW SDVVLYH RULHQWDWLRQ f 7KLV HTXDWHV WR D PRGHUDWH FRPSHWHQF\ OHYHO 7KH UHPDLQLQJ IRXU VXSHUYLVRUV ZHUH GHVFULEHG DV GHFLGHGO\ PRUH DFWLYH LQ WKHLU MRE DSSURDFK UHVSRQVHV UDQJLQJ IURP WR f RU D KLJK GHJUHH RI FRPSHWHQF\ 3UREOHP VNLOOV $ YHU\ VLPLODU UHVSRQVH SDWWHUQ WR WKH SUHYLRXV GLPHQVLRQ ZDV DOVR LQGLFDWHG LQ DVVHVVLQJ WKH SUREOHP VNLOOV RI WKH VXSHUYLVRUV 6XSHUn YLVRU ZDV GHVFULEHG DV SRVVHVVLQJ RQO\ D PRGHUDWH GHJUHH RI UHDVRQLQJ SUREOHP SHUFHSWLRQ DQG IRFXV FRQFHSWXDO LQQRYDWLYHQHVV DQG OLVWHQLQJ VNLOOV D UHVSRQVHf 7KH UHPDLQLQJ VXSHUYLVRUV ZHUH GHVFULEHG DV H[KLELWLQJ PRUH H[WHQVLYH SUREOHP VNLOOV

PAGE 94

3HUVRQDO DELOLWLHV 7KH VLPLODULWLHV LQ UHVSRQVHV FRQWLQXHG IRU WKLV ODVW GLPHQVLRQ GHVFULELQJ WKH VXSHUYLVRUVr OHDGHUVKLS VW\OHV RI 3ODQW % 6XSHUYLVRU LV EHVW GHVFULEHG DV SRVVHVVLQJ PRGHUDWH FRPSHWHQF\ ZKLOH WKH UHPDLQn LQJ VXSHUYLVRUV FDQ EH FKDUDFWHUL]HG DV KDYLQJ D UHODWLYHO\ KLJKHU GHJUHH RI FRPSHWHQF\ LQ WKHLU SHUVRQDO DELOLWLHV )LJXUHV WKURXJK $SSHQGL[ (f UHSUHVHQW WKH OHDGHUVKLS SURn ILOHV RI HDFK VXSHUYLVRU RI 3ODQW % 7KH SURILOHV GHSLFW WKDW IRU 3ODQW % WKH VXSHUYLVRU\ OHDGHUVKLS VW\OHV WKDW H[LVW DUH f DQ DOPRVW WRWDO JHQHUDO VW\OH RI OHDGHUVKLS ZLWK RQO\ WKUHH H[FHSWLRQV VWDQGDUGV VXSHUYLVRU WHQGV WR HPSOR\ ORZ VWDQGDUGVf DQG SDUWLFLSDWLRQ VXSHUYLVRU f IDOOLQJ RQ WKH GHPRFUDWLF HQG RI WKH FRQWLQXXP DQG JRDO HPSKDVLV VXSHUYLVRU f RQ WKH DXWRFUDWLF HQG RI WKH OHDGHUVKLS FRQWLQXXPDQG f WKH VXSHUYLVRUV SRVVHVV D KLJK GHJUHH RI FRPSHWHQF\ LQ SHUIRUPLQJ WKHLU MREV WKH RQO\ JHQHUDO H[FHSWLRQ LV VXSHUYLVRU ZKR ZDV GHVFULEHG DV SRVVHVVLQJ D PRGHUDWH GHJUHH RI FRPSHWHQF\f %HKDYLRUDO 3URILOH RI 3ODQW % 7KH UHVSRQVHV WR WKH EHKDYLRUDO TXHVWLRQQDLUH E\ WKH VXSHUYLVRUV DQG WKH IRUHPHQ DQG RWKHU VDODULHG SHUVRQQHO DUH UHSRUWHG DQG GLVFXVVHG LQ WKLV VHFWLRQ 7KH VDPH FODVVLILFDWLRQ VFKHPH IROORZHG LQ WKH SUHYLRXV FKDSWHU IRU WKH EHKDYLRUDO VHFWLRQ LV HPSOR\HG LQ GHVFULELQJ WKH EHKDYLRU PHDVXUHG LQ 3ODQW % %HKDYLRUDO SURILOH ILJXUHV IRU WKH WDEXODU GDWD DUH LQFOXGHG LQ $SSHQGL[ (

PAGE 95

6XSHUYLVRUV 'HVFULSWLRQ RI (PSOR\HHV %HKDYLRU 7DEOH UHSRUWV WKH UHVSRQVHV RI WKH ILYH VXSHUYLVRUV RI 3ODQW % WR WKH EHKDYLRUDO TXHVWLRQQDLUH GHVFULELQJ WKHLU HPSOR\HHV EHKDYLRU 7KH GLVFXVVLRQ LQ WKLV VHFWLRQ LV SULPDULO\ LQ WHUPV RI WKUHH W\SHV RI EHKDYLRU QHJDWLYH JHQHUDO DQG SRVLWLYH ZLWKLQ WKH IRXU FDWHJRULHV RI LQGLYLGXDO LQWUDJURXS ODWHUDO LQWUDJURXS YHUWLFDO DQG LQWHUJURXS EHKDYLRU ,QGLYLGXDO EHKDYLRU 7KH VXSHUYLVRUV GHVFULEHG WKHLU HPSOR\HHVr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f ZKLOH LW ZDV QHJDWLYH LQ JURXS DQG KLJKO\ SRVLWLYH LQ ZRUN JURXS D UHVSRQVH RI f 6HOILPSURYHPHQW7KUHH VXSHUYLVRUV GHVFULEHG WKHLU HPSOR\HHV HIIRUWV DW VHOILPSURYHPHQW WR EH UHODWLYHO\ ORZ IDOOLQJ LQ WKH

PAGE 96

7$%/( 3/$17 % 5(63216( 2) ),9( 6(&21' /(9(/ 683(59,6256 72 %(+$9,25 48(67,211$,5( '(6&5,%,1* (03/2<(( n %(+$9,25 %< 9$5,$%/( $1' :25. *5283 9 D \r H[ 9f S :RL UN *URXS 9 &,/ &,8 & L ,QGLYLGXDO %HKDYLRU -RE ,QYROYHPHQW &RPPLWPHQW WR 0HHWLQJ 6WDQGDUGV ,QLWLDWLYH 6HOIf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

PAGE 97

QHJDWLYHf EHKDYLRU JURXSLQJ 7KH VXSHUYLVRU RI ZRUN JURXS IHOW KLV HPSOR\HHV H[KLELWHG D JHQHUDO EHKDYLRU RULHQWDWLRQ YLVDYLV WKLV YDULDEOH 7KH VXSHUYLVRU RI JURXS GLG QRW UHVSRQG WR WKLV LWHP :RUNJRDO FRPPLWPHQW7DEOH LQGLFDWHV WKDW VXSHUYLVRUV DQG UHJDUG WKHLU HPSOR\HHV DV KDYLQJ D UHODWLYHO\ KLJK GHJUHH RI SRVLWLYH EHKDYLRU RULHQWDWLRQ ERWK VXSHUYLVRUVf UHVSRQVHV ZHUH f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f :RUN JURXSV DQG ZHUH GHSLFWHG DV JHQHUDO DQG SRVLWLYH EHKDYLRUDOO\ RULHQWHG UHVSHFWLYHO\ $EVHQWHHLVP7KUHH ZRUN JURXSV DQG SRVVHVVHG QHJDWLYH EHKDYLRU LH MRE DWWHQGDQFH ZDV IHOW WR KDYH DQ XQVWDEOH HIIHFW RQ RSHUDWLRQV 7KH UHPDLQLQJ WZR JURXSV DUH FODVVLILHG DV JHQHUDO EHKDYLRU 7XUQRYHU*URXSV DQG ZHUH GHSLFWHG DV QHJDWLYH W\SHV RI EHKDYLRU UHJDUGLQJ WKH HIIHFW RI WXUQRYHU RQ RSHUDWLRQV 7KH VXSHUn YLVRU RI JURXS LQGLFDWHG WKH RQO\ SRVLWLYH RULHQWDWLRQ LH

PAGE 98

WXUQRYHU VRPHWLPHV DIIHFWV WKH JURXSnV RSHUDWLRQV 7KH UHPDLQLQJ WZR VXSHUYLVRUV UHVSRQGHG WKDW JHQHUDOf EHKDYLRU ZDV WKH FDVH 6XPPDUL]LQJ WKH UHVSRQVHV RI WKH ILYH VXSHUYLVRUV WR WKH LQGLYLGXDO EHKDYLRU TXHVWLRQV VKRZV WKDW VXSHUYLVRU H[SUHVVHG WKH KLJKHVW QXPEHU RI QHJDWLYH UHSOLHV ZLWK HLJKW ZKLOH VXSHUYLVRU KDG WKH KLJKHVW QXPEHU RI SRVLWLYH UHVSRQVHV ZLWK IRXU ,QWUDJURXS EHKDYLRU ODWHUDO UHODWLRQV 6L[ LQGLFHV FRPSULVH WKLV FDWHJRU\ RI EHKDYLRU 7KH ILYH VXSHUn YLVRUVn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f *URXSV DQG ZHUH FKDUDFWHUL]HG DV SRVLWLYH LQ WKHLU ODWHUDO LQWUDJURXS EHKDYLRU &RRSHUDWLRQ SDWWHUQV&RRSHUDWLRQ SDWWHUQV ZLWKLQ WKH ZRUN JURXS ZHUH SHUFHLYHG DV QHJDWLYH E\ VXSHUYLVRUV DQG 7KH\ ZHUH JHQHUDO IRU JURXS DQG SRVLWLYH IRU JURXSV DQG

PAGE 99

*URXS XQLW\3RVLWLYH EHKDYLRU ZDV FKDUDFWHUL]HG E\ VXSHUYLVRUV DQG 2QO\ VXSHUYLVRU IV DWWLWXGH ZDV LQFOXGHG LQ WKH JHQHUDO JURXSLQJ 6XSHUYLVRU GLG QRW UHVSRQG WR WKLV TXHVWLRQ ,QWHUDFWLRQ RII WKH MRE,QIRUPDO LQWHUDFWLRQV RII WKH MRE ZHUH GHSLFWHG DV QHJDWLYH E\ VXSHUYLVRUV DQG 6XSHUYLVRU ZDV WKH RQO\ UHVSRQGHQW WR UHSO\ LQ D PDQQHU WR DOORZ WKH UHVSRQVH WR EH LQn FOXGHG LQ WKH SRVLWLYH EHKDYLRU JURXSLQJ 7KH UHPDLQLQJ WZR VXSHUn YLVRUV GHVFULEHG JHQHUDO EHKDYLRU ,Q VXPPDU\ ILYH RXW RI WKH VL[ YDULDEOHV LQ WKH LQWUDJURXS ODWHUDO EHKDYLRU FDWHJRU\ ZHUH GHVFULEHG DV QHJDWLYH E\ VXSHUYLVRU ZKLOH VXSHUYLVRU KDG DOO VL[ UHVSRQVHV LQ WKH SRVLWLYH EHKDYLRU JURXSLQJ ,QWUDJURXS EHKDYLRU YHUWLFDO UHODWLRQV 7KH ILYH VXSHUYLVRUV GHVFULEHG WKHLU HPSOR\HHV YHUWLFDO UHODWLRQV ZLWKLQ WKH ZRUN JURXS E\ UHVSRQGLQJ WR WHQ TXHVWLRQV GLUHFWHG DW PHDVXUn LQJ WKH H[LVWLQJ EHKDYLRU 7KH GLVFXVVLRQ LQ WKLV VHFWLRQ LV LQ WHUPV RI WKH WHQ YDULDEOHV FRPSULVLQJ WKH FDWHJRU\ RI YHUWLFDO LQWUDJURXS EHKDYLRU 7UXVW DQG FRQILGHQFH GRZQZDUG7KH UHVSRQVH RI VXSHUYLVRU LQn GLFDWHV QHJDWLYH EHKDYLRU UHJDUGLQJ WKH WUXVW DQG FRQILGHQFH WKDW VXSHUYLVRUV KDYH LQ VXERUGLQDWHV 6XSHUYLVRUV DQG UHVSRQGHG b SRVLWLYHO\ ZLWK D DQG UHSO\ UHVSHFWLYHO\ ZKLOH JHQHUDO EHn KDYLRU ZDV LQGLFDWHG E\ VXSHUYLVRUV DQG 7UXVW DQG FRQILGHQFH XSZDUG2QO\ VXSHUYLVRU UHVSRQGHG RWKHU WKDQ QHJDWLYHO\ WR WKLV YDULDEOH RI YHUWLFDO LQWUDJURXS EHKDYLRU KLV ZDV D SRVLWLYH UHVSRQVH LQ GHVFULELQJ WKH GHJUHH RI WUXVW DQG FRQILGHQFH WKDW VXERUGLQDWHV KDYH LQ VXSHULRUV

PAGE 100

5HTXHVWHG LQIRUPDWLRQ7KUHH VXSHUYLVRUV DQG f GHVFULEHG WKHLU ZRUN JURXSV DV H[KLELWLQJ SRVLWLYH EHKDYLRU UHJDUGLQJ WKH DFFXUDF\ DQG FRPSOHWHQHVV RI LQIRUPDWLRQ ZKLFK WKH\ UHTXHVW IURP HPn SOR\HHV 6XSHUYLVRUV DQG LQGLFDWHG QHJDWLYH EHKDYLRU &RPPXQLFDWLRQ VFUHHQLQJ2QO\ VXSHUYLVRU GHVFULEHG KLV HPSOR\HHV DV DOPRVW DOZD\V OLPLWLQJ LPSRUWDQW XSZDUG MRE LQIRUPDWLRQ D QHJDn WLYH RULHQWDWLRQ 6XSHUYLVRU GLG QRW UHVSRQG WR WKLV LWHP ZKLOH WKH UHPDLQLQJ WKUHH VXSHUYLVRUV LQGLFDWHG SRVLWLYH EHKDYLRU IRU WKHLU ZRUN JURXSV -RE LQIRUPDWLRQ*URXSV DQG ZHUH GHVFULEHG DV SRVLWLYH LH WKH\ XVXDOO\ EULQJ MRE SUREOHPV WR WKH DWWHQWLRQ RI WKH VXSHUYLVRU 6XSHUYLVRU IV UHVSRQVH ZDV D JHQHUDO EHKDYLRU LQGLFDWRU DQG D QHJD WLYH UHSO\ ZDV UHFRUGHG IRU VXSHUYLVRU +XPDQ UHODWLRQV LQIRUPDWLRQ7KH H[WHQW WKDW VXERUGLQDWHV YROXQn WHHU XVHIXO KXPDQ UHODWLRQV LQIRUPDWLRQ ZDV GHVFULEHG DV SRVLWLYH RQO\ E\ VXSHUYLVRU 7KUHH VXSHUYLVRUV IHOW WKDW D QHJDWLYH RULHQWDn WLRQ H[LVWHG ZLWKLQ WKHLU ZRUN JURXSV 6XSHUYLVRU HOHFWHG QRW WR UHVSRQG WR WKLV TXHVWLRQ &RRSHUDWLRQ DQG WHDPZRUN7KH UHVSRQVHV RI VXSHUYLVRUV DQG DUH LQ WKH QHJDWLYH EHKDYLRU JURXSLQJ ZKHUHDV VXSHUYLVRUV DQG ERWK LQGLFDWHG D SRVLWLYH GHJUHH RI FRRSHUDWLRQ DQG WHDPZRUN EHWZHHQ WKH VXSHUYLVRU DQG KLV VXERUGLQDWHV $FFHSWDQFH RI LPPHGLDWH VXSHUYLVRU GHFLVLRQV7KH IRXU VXSHUYLVRUV ZKR UHSOLHG WR WKLV YDULDEOH ZHUH DOO RI WKH RSLQLRQ WKDW SRVLWLYH EHKDYLRU H[LVWHG 6XSHUYLVRU GLG QRW UHVSRQG

PAGE 101

$FFHSWDQFH RI KLJKHU OHYHO PDQDJHPHQW GHFLVLRQV6XSHUYLVRUV DQG IHOW WKDW QHJDWLYHf EHKDYLRU ZDV LQGLFDWHG ZLWKLQ WKHLU JURXSV YLVDYLV WKLV YDULDEOH 7KH UHPDLQLQJ VXSHUYLVRUV H[SUHVVHG SRVLWLYH EHKDYLRU WR EH WKH FDVH IRU WKHLU JURXSV $FFHSWDQFH RI VWDII JURXS GHFLVLRQV$OO VXSHUYLVRUV ZHUH RI WKH RSLQLRQ WKDW WKHLU HPSOR\HHV H[KLELW SRVLWLYH EHKDYLRU LQ DFFHSWLQJ GHFLVLRQV PDGH E\ VWDII JURXSV 6XPPDUL]LQJ WKH ILYH VXSHUYLVRUVn UHVSRQVHV ZLWKLQ WKLV WKLUG PDMRU FDWHJRU\ RI EHKDYLRU VKRZV WKDW f WKH RULHQWDWLRQ LV GHILQLWHO\ WRZDUG WKH SRVLWLYH EHKDYLRU HQG RI WKH FRQWLQXXP WZHQW\VHYHQ SRVLWLYH UHVSRQVHV VHYHQWHHQ QHJDWLYH DQG WKUHH JHQHUDOf f VXSHUYLVRU UHSOLHG LQ HDFK LQVWDQFH ZLWK D SRVLWLYH EHKDYLRU GHVFULSWLRQ DQG f VXSHUYLVRU LQGLFDWHG WKH KLJKHVW QXPEHU RI QHJDWLYH DVSHFWV ZLWKLQ WKH FDWHJRU\ ,QWHUJURXS EHKDYLRU (LJKW YDULDEOHV FRQVWLWXWH WKLV ODVW PDMRU FDWHJRU\ RU EHKDYLRU 7KH UHVSRQVHV RI WKH ILYH VXSHUYLVRUV UHSRUWHG LQ 7DEOH LQGLFDWH WKHLU RSLQLRQV UHJDUGLQJ WKH LQWHUJURXS EHKDYLRU WKDW H[LV WV EH WZHHQ $ WKHLU ZRUN JURXSV DQG RWKHUV RI 3ODQW % &RQILGHQFH DQG WUXVW5HVSRQVH YDOXHV RI LQGLFDWHG E\ VXSHUn YLVRUV DQG IDOO ZLWKLQ WKH SRVLWLYH EHKDYLRU JURXSLQJ 6XSHUn YLVRU IHOW WKDW D QHJDWLYH RULHQWDWLRQ H[LVWHG EHWZHHQ KLV ZRUN b JURXS DQG RWKHU JURXSV UHJDUGLQJ LQWHUJURXS FRQILGHQFH DQG WUXVW ZKLOH VXSHUYLVRU UHVSRQGHG WKDW JHQHUDO EHKDYLRU ZDV WKH FDVH

PAGE 102

&RPPXQLFDWLRQV DFFXUDF\,QWHUJURXS LQIRUPDWLRQ DFFXUDF\ ZDV GHVFULEHG DV QHJDWLYHf IRU JURXSV DQG JHQHUDOf IRU JURXS DQG SRVLWLYH IRU JURXSV DQG &RPPXQLFDWLRQV VFUHHQLQJ7KH LQFLGHQFH RI EORFNLQJ RU VFUHHQLQJ LQWHUJURXS FRPPXQLFDWLRQV ZDV YLHZHG E\ WKH ILYH VXSHUYLVRUV DV VHOGRP RFFXUULQJ D SRVLWLYH EHKDYLRU RULHQWDWLRQ LQ DOO ZRUN JURXSV ,QIRUPDO FRPPXQLFDWLRQV'LVFXVVLRQV RI WKH LQIRUPDO QRQMRE UHODWHG W\SHV ZHUH SHUFHLYHG WR UDUHO\ RFFXU QHJDWLYH EHKDYLRUf E\ VXSHUYLVRU RIWHQ RFFXUULQJ JHQHUDO EHKDYLRUf E\ VXSHUYLVRUV DQG DQG XVXDOO\ SRVLWLYH EHKDYLRUf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

PAGE 103

,Q VXPPDU\ WKH SUHFHGLQJ HLJKW LQWHUJURXS EHKDYLRU UHVSRQVHV E\ WKH VXSHUYLVRUV RI 3ODQW % LQGLFDWH WKDW f RYHUDOO WKH UHVSRQVHV VKRZ D SRVLWLYH RULHQWDWLRQ f VXSHUYLVRU GHVFULEHG WKH JUHDWHVW QXPEHU RI QHJDWLYH DVSHFWV RI LQWHUJURXS EHKDYLRU DQG f VXSHUYLVRU H[SUHVVHG WKH JUHDWHVW QXPEHU RI SRVLWLYH DWWULEXWHV )LJXUHV WKURXJK $SSHQGL[ (f UHSUHVHQW WKH EHKDYLRUDO SURn ILOHV RI WKH ILYH ZRUN JURXSV EDVHG XSRQ WKH VXSHUYLVRUVn SHUFHSWLRQV DV UHSRUWHG LQ 7DEOH 7KH IRUHPHQ DQG RWKHU VDODULHG SHUVRQQHOnV SHUFHSWLRQV RI WKH VDPH ILYH ZRUN JURXSV DUH GLVFXVVHG LQ WKH IROORZLQJ VHFWLRQ )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHOnV 'HVFULSWLRQ RI (PSOR\HHVn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n PHQW IRU JURXS LQGLFDWH QHJDWLYH EHKDYLRU :RUN JURXSV DQG GHVFULEHG JHQHUDO EHKDYLRU ZKLOH JURXSV DQG LQGLFDWHG D SRVLWLYH EHKDYLRU RULHQWDWLRQ

PAGE 104

7$%/( 3/$17 % $9(5$*( 5(63216( 2) )25(0(1 $1' 27+(5 6$/$5,(' 3(56211(/ 72 %(+$9,25 48(67,211$,5( '(6&5,%,1* (03/2<(( %(+$9,25 %< 9$5,$%/( $1' :25. *5283 f§ ‘ ‘ 9DULDEOH ‘ ‘ ‘‘ ‘ f§ ‘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f $FFHSWDQFH RI ,PPHGLDWH 6XSHUYLVRU 'HFLVLRQV $FFHSWDQFH RI +LJKHU /HYHO 0DQDJHPHQW 'HFLVLRQV $FFHSWDQFH RI 6WDII *URXS 'HFLVLRQV ,QWHUJURXS %HKDYLRU &RQILGHQFH DQG 7UXVW &RPPXQLFDWLRQV $FFXUDF\ &RPPXQLFDWLRQV 6FUHHQLQJ ,QIRUPDO &RPPXQLFDWLRQV &RRSHUDWLRQ DQG 7HDPZRUN 7HDP 6SLULW $FFHSWDQFH RI 'HFLVLRQV ,QWHUDFWLRQ 3DWWHUQV

PAGE 105

&RPPLWPHQW WR PHHWLQJ VWDQGDUGV7KH ILUVW WKUHH ZRUN JURXSV ZHUH GHVFULEHG E\ WKH IRUHPHQ DQG RWKHU VDODULHG SHUVRQQHO DV XVXDOO\ WU\LQJ WR GR D IXOO GD\nV ZRUN WKH UHVSRQVHV LQGLFDWH SRVLWLYHf EHKDYLRU LQ RXU FODVVLILFDWLRQ VFKHPH %RWK JURXSV DQG ZHUH YLHZHG DV SRVVHVVLQJ JHQHUDO EHKDYLRU ,QLWLDWLYH(PSOR\HH MRE LQLWLDWLYH ZDV YLHZHG DV QHJDWLYH E\ WKH UHVSRQGHQWV LQ JURXS ZKLOH JURXS ZDV GHVFULEHG DV IDOOLQJ ZLWKLQ WKH JHQHUDO EHKDYLRU JURXSLQJ :RUN JURXSV DQG ZHUH HDFK FKDUDFWHUL]HG DV H[DPSOH RI SRVLWLYH EHKDYLRU W\SHV 6HOILPSURYHPHQW1HJDWLYH EHKDYLRU RQ WKH SDUW RI HPSOR\HHV LQ ZRUN JURXSV DQG LV HYLGHQFH UHJDUGLQJ DWWHPSWV DW VHOILPn SURYHPHQW DFFRUGLQJ WR WKH UHVSRQGHQWV ZLWKLQ WKHVH JURXSV :RUN JURXSV DQG ZHUH YLHZHG DV SRVVHVVLQJ JHQHUDO EHKDYLRU :RUNJRDO FRPPLWPHQW7KH H[WHQW RI LQGLYLGXDO FRPPLWPHQW WR PHHWLQJ JRDOV ZDV GHVFULEHG WR EH SRVLWLYH LQ JURXSV DQG *HQHUDO EHKDYLRU ZDV WKH FDVH IRU JURXSV DQG )UXVWUDWLRQ OHYHOV7KH UHVSRQVH E\ JURXSV DQG SODFHV WKHVH JURXSV LQ WKH JHQHUDO EHKDYLRU DUHD RI WKH FRQWLQXXP 3RVLWLYH EHKDYLRU H[LVWLQJ ZLWKLQ JURXSV DQG ZDV WKH DWWLWXGH RI WKH UHVSRQGHQWV UHJDUGLQJ WKH IHHOLQJ RI HPSOR\HHVn IUXVWUDWLRQ LQ SHUIRUPn LQJ MRE WDVNV LH WKHUH H[LVWV D YHU\ ORZ OHYHO RI IUXVWUDWLRQ ZLWKLQ WKHVH JURXSV 6HQVH RI DFKLHYHPHQW-RE VDWLVIDFWLRQ LQ WKH RSLQLRQ RI JURXSV DQG ZDV UDWHG LQ WKH SRVLWLYH EHKDYLRU JURXSLQJ 7KH ODVW WZR ZRUN JURXSV SRVVHVV JHQHUDO EHKDYLRU YLVDYLV D VHQVH RI DFKLHYHPHQW

PAGE 106

$EVHQWHHLVP7KH HIIHFW RI MRE DWWHQGDQFH ZDV YLHZHG DV QHJDWLYHf ZLWKLQ JURXSV DQG DQG JHQHUDO IRU JURXSV DQG 1R JURXS UHVSRQGHG LQ D PDQQHU WR DOORZ WKHLU LQFOXVLRQ LQ WKH SRVLWLYH JURXSLQJ UHVSRQVHV RI WR f 7XUQRYHU7KH XQVWDEOH HIIHFWV RI HPSOR\HH WXUQRYHU ZHUH UHJDUGHG DV RQO\ VRPHWLPHV RFFXUULQJ ZLWKLQ JURXSV DQG D SRVLWLYH H[DPSOH RI EHKDYLRU ZKLOH WKH UHPDLQLQJ JURXSV IHOW WKDW RIWHQ WKH WXUQRYHU UDWH DIIHFWHG WKHLU RSHUDWLRQV D JHQHUDO EHKDYLRU LQGLFDn WRU IRU WKLV ODVW YDULDEOH LQ WKH LQGLYLGXDO EHKDYLRU FDWHJRU\ ,Q VXPPDU\ RYHUDOO WKH ILYH ZRUN JURXSV DUH RULHQWHG WRZDUG WKH SRVLWLYHJHQHUDO DUHD RI WKH EHKDYLRU FRQWLQXXP SRVLWLYH UHVSRQVHV JHQHUDO UHVSRQVHV DQG RQO\ QHJDWLYH UHSOLHVf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f

PAGE 107

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f :RUN JURXS LQGLFDWHG WZR RXW RI WKH WKUHH QHJDWLYH UHVSRQVHV EXW ZDV EDVLFDOO\ RULHQWHG WRZDUG WKH JHQHUDO EHKDYLRU JURXSLQJ ,QWUDJURXS EHKDYLRU YHUWLFDO UHODWLRQV 7UXVW DQG FRQILGHQFH GRZQZDUG6XSHULRUV7 WUXVW DQG FRQILGHQFH LQ VXERUGLQDWHV ZHUH YLHZHG DV SRVLWLYH E\ WKH ILUVW WKUHH ZRUN JURXSV DQG JHQHUDO E\ WKH ODVW WZR JURXSV

PAGE 108

7UXVW DQG FRQILGHQFH XSZDUG 7KH SDWWHUQ RI VXERUGLQDWHVn WUXVW DQG FRQILGHQFH LQ VXSHULRUV ZDV LGHQWLFDO WR WKH SUHYLRXV YDULDEOH UHVSRQVH 5HTXHVWHG LQIRUPDWLRQ2QO\ JURXS UHVSRQGHG ZLWK RWKHU WKDQ D SRVLWLYH UHSO\ WR WKH YDULDEOH PHDVXULQJ VXSHUYLVRU\ UHTXHVWHG LQn IRUPDWLRQ ,WV UHVSRQVH ZDV LQ WKH JHQHUDO EHKDYLRU JURXSLQJ &RPPXQLFDWLRQ VFUHHQLQJ5HVSRQVHV GHVFULELQJ WKH YROXQWHHULQJ RI XSZDUG LQIRUPDWLRQ IDOO ZLWKLQ WKH VDPH EHKDYLRU JURXSLQJ DV ZDV GHSLFWHG LQ WKH SUHYLRXV YDULDEOH -RE LQIRUPDWLRQ$ KLJK GHJUHH RI SRVLWLYH EHKDYLRU UHJDUGLQJ WKH XSZDUG IORZ RI MRE LQIRUPDWLRQ ZDV LQGLFDWHG E\ IRXU ZRUN JURXSV 2QO\ JURXS nV UHVSRQVH RI JHQHUDO EHKDYLRUf ZDV RXWVLGH WKH SRVLWLYH JURXSLQJ +XPDQ UHODWLRQV LQIRUPDWLRQ:RUN JURXSV DQG H[SUHVVHG WKH RSLQLRQ WKDW VXERUGLQDWHV RIWHQ YROXQWHHUHG KXPDQ UHODWLRQV LQIRUn PDWLRQ WR VXSHULRUV JHQHUDO EHKDYLRU UHVSRQVH :RUN JURXSV DQG LQGLFDWHG D KLJKHU H[WHQW RI YROXQWHHUHG LQIRUPDWLRQ RU D SRVLWLYH EHKDYLRU LQGLFDWRU &RRSHUDWLRQ DQG WHDPZRUN7KH IRUHPHQ RI ZRUN JURXS FROOHFWLYHO\ H[SUHVVHG WKH DWWLWXGH WKDW DOPRVW DOZD\V D VHQVH RI FRRSHUDWLRQ DQG WHDPZRUN H[LVWV EHWZHHQ WKH VXSHUYLVRU DQG VXERUGLQDWHV 7KH UHVSRQVH ZDV WKH RQO\ SRVLWLYH UHSO\ ZLWK WKH RWKHU JURXSV IDOOLQJ ZLWKLQ WKH JHQHUDO EHKDYLRU JURXSLQJ

PAGE 109

$FFHSWDQFH RI LPPHGLDWH VXSHUYLVRU GHFLVLRQV,Q HYDOXDWLQJ WKH H[WHQW RI DFFHSWDQFH RI WKH VXSHUYLVRUnV GHFLVLRQV ZRUN JURXS nV UHVSRQVH IDOOV ZLWKLQ WKH JHQHUDO EHKDYLRU DUHD 7KH UHPDLQLQJ IRXU JURXSVn UHVSRQVHV DUH LQ WKH SRVLWLYH EHKDYLRU FDWHJRU\ $FFHSWDQFH RI KLJKHU OHYHO PDQDJHPHQW GHFLVLRQV*HQHUDO EHn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nV GHVFULSWLRQV ZHUH DOO LQ WKH SRVLWLYH EHKDYLRU JURXSLQJ ,QWHUJURXS EHKDYLRU &RQILGHQFH DQG WUXVW7KH UHVSRQVHV RI ZRUN JURXSV DQG WR WKH YDULDEOH PHDVXULQJ LQWHUJURXS FRQILGHQFH DQG WUXVW SODFHV WKHVH JURXSV LQ WKH SRVLWLYH EHKDYLRU JURXSLQJ 7KH UHPDLQLQJ WKUHH JURXSV LQGLn FDWHG ZLWK WKHLU UHVSRQVHV D JHQHUDO EHKDYLRU RULHQWDWLRQ &RPPXQLFDWLRQV DFFXUDF\7ZR ZRUN JURXSV DQG ZHUH RI WKH RSLQLRQ WKDW FRPPXQLFDWLRQV EHWZHHQ WKHLU JURXS DQG RWKHU JURXSV ZHUH DFFXUDWH DQG FRPSOHWH WR WKH H[WHQW ZKLFK DOORZHG WKH UHVSRQVHV WR IDOO ZLWKLQ WKH JHQHUDO EHKDYLRU FDWHJRU\ *URXSV DQG LQGLFDWHG SRVLWLYH EHKDYLRU

PAGE 110

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n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r UHVSRQVHV ZHUH DOO LQ WKH QHJDWLYH DUHD RI LQWHUJURXS

PAGE 111

EHKDYLRU WKH RQO\ YDULDEOH RI EHKDYLRU WR UHFHLYH VXFK D KLJK QXPEHU RI QHJDWLYHf UHVSRQVHV 6XPPDUL]LQJ WKH SUHFHGLQJ HLJKW YDULDEOHV ZH ILQG WKDW IRU WKH ILYH ZRUN JURXSV WKHUH H[LVWV D VOLJKW SRVLWLYH RULHQWDWLRQ LQ EHKDYLRU SRVLWLYH UHVSRQVHV JHQHUDOf :RUN JURXS KDG WKH PRVW SRVLWLYH LQGLFDWRUV ZLWK VL[ )LJXUHV WKURXJK $SSHQGL[ ( VKRZ WKH EHKDYLRUDO SDWWHUQV IRU WKH ILYH ZRUN JURXSV EDVHG XSRQ WKH GDWD IURP 7DEOH 7KH VWUXFWXUH OHDGHUVKLS DQG EHKDYLRU RI 3ODQW & ZLOO EH GHVFULEHG LQ WKH QH[W FKDSWHU

PAGE 112

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n VWDQGLQJ SULRU WR GHVFULELQJ WKH IDFWRUV ZKLFK H[LVW LQ 3ODQW & DQG EHIRUH LQWHUSODQW FRPSDULVRQV FDQ EH PDGH LQ &KDSWHU 9, ,Q UHVSRQGLQJ WR WKH VWUXFWXUDO TXHVWLRQQDLUH WKH HPSOR\HHV GHVFULEHG WKHLU ZRUN JURXS DV GHSLFWHG LQ WKH RUJDQL]DWLRQ FKDUW 7KH SODQW PDQDJHUnV OHDGHUVKLS VW\OH ZDV GHVFULEHG E\ WKH DVVLVWDQW SODQW PDQDJHU DQG VXSHUYLVRUV DQG 7KH DVVLVWDQW SODQW PDQDJHU rV

PAGE 113

$VVLVWDQW 3ODQW 0DQDJHU XSHUYLVRU :RUN *URXS 6XSHUYLVRU :RUN *URX 6XSHUYLVRU :RUN *URX 6XSHUYLVRU :RUN *URX 6XSHUYLVRU :RUN *URXS 6XSHUYLVRU :RUN *URX 6XSHUYLVRU :RUN *URXS )RUHPDQ &OHUN )RUHPDQ )RUHPDQ )RUHPDQ )RUHPDQ $VVLVWDQ &OHUN )LJ 2UJDQL]DWLRQ &KDUW 3ODQW &

PAGE 114

OHDGHUVKLS VW\OH ZDV HYDOXDWHG E\ VXSHUYLVRUV DQG 7KH OHDGHUn VKLS VW\OHV RI VXSHUYLVRUV DQG ZHUH GHVFULEHG E\ WKHLU LPPHGLDWH VXERUGLQDWHV 6LQFH VRPH VXERUGLQDWHV LQ NHHSLQJ ZLWK WKH UHVHDUFK GHVLJQ GLG QRW SDUWLFLSDWH LQ HYDOXDWLQJ WKH VXSHUYLVRU IRU ZRUN JURXSV DQG GHVFULSWLRQ RI WKH OHDGHUVKLS VW\OHV RI WKHVH VXSHUYLVRUV ZDV QRW SRVVLEOH 7KH DVVLVWDQW SODQW PDQDJHU GHVFULEHG WKH EHKDYLRUDO IDFWRUV H[LVWn LQJ LQ ZRUN JURXSV DQG 7KH VXSHUYLVRUV RI JURXSV DQG LQGLYLGXDOO\ HYDOXDWHG WKH EHKDYLRU FKDUDFWHULVWLFV RI WKHLU UHVSHFWLYH JURXSV ZKLOH LQ WXUQ WKH IRUHPHQ DQG FOHUNV RI WKHVH VDPH JURXSV GHVFULEHG WKH EHKDYLRU HOHPHQWV DV WKH\ SHUFHLYHG WKHP 3ULPDU\ 6WUXFWXUDO 9DULDEOHV RI 3ODQW & 7DEOH UHSUHVHQWV WKH DYHUDJH UHVSRQVHV RI WKH VHYHQ ZRUN JURXSV WR WKH TXHVWLRQQDLUH LWHPV PHDVXULQJ WKH SULPDU\ VWUXFWXUDO HOHPHQWV RI VL]H ZRUN IORZ VSDWLDOSK\VLFDOWHPSRUDO IDFWRUV ZRUN GHPDQGV DQG KHXULVWLFV RI 3ODQW & 7KH GLVFXVVLRQ LQ WKLV VHFWLRQ LV LQ WHUUDV RI WKHVH ILYH HOHPHQWV 6L]H 7KH YDOXH UHVSRQVHV UHSRUWHG LQ 7DEOH DUH DUULYHG DW E\ XVLQJ WKH VL]H WDEOH LQFOXGHG LQ WKH JORVVDU\ $OO VHYHQ ZRUN JURXSV DUH VPDOO LQ VL]H IRU 3ODQW & :RUN )ORZ 7KH LQWUDJURXS DQG LQWHUJURXS LQSXWRXWSXW UHODWLRQVKLSV WKDW H[LVWHG LQ 3ODQW & ZHUH PHDVXUHG 7KH\ FDQ EH GHVFULEHG DV UDQJLQJ IURP QRQLQWHJUDWHG WR LQWHJUDWHG ZRUN IORZV 7KH UHPDLQLQJ VL[ JURXSV KDYH SDUWLDO LQWHJUDWLRQ

PAGE 115

7$%/( 3/$17 & $9(5$*( 5(63216( 72 35,0$5< 6758&785$/ 48(67,211$,5( ,7(06 %< 9$5,$%/( $1' :25. *5283 9DULDEOH :RUN *URXS L 6L]HD L :RUN )ORZ ,QFUDJURXS ,QWHUJURXS :RUN *URXS f§ f§ f§ LL LL f§ f§ f§ f§ f§ P LL f§ f§ f§ f§ f§ LL LL A f§ f§ f§ f§ LL LL f§ f§ f§ f§ LL LL f f§ f§ f§ f§ f§ LL LL L f§ f§ f§ 6SW )DFWRUV ,QWUDJURXS ,QWHUJURXS :RUN *URXS f§ f§ f§ f§ LL LL f§ f§ f§ f§ f§ f§ LW LL f§ f§ f§ f§ LL LL A f§ f§ f§ f§ LL LL f§ f§ f§ f§ f§ ,, f§ f§ f§ ,, ,, f§ f§ f§ f§ f§ :RUN 'HPDQGV +HXULVWLFV m D7KH VL]H DYHUDJH UHVSRQVHV DUH DUULYHG DW E\ XVLQJ 7DEOH ZKLFK DSSHDUV LQ WKH JORVVDU\

PAGE 116

,QWHUJURXS ZRUN IORZ t 6LQFH RQO\ WKH VLJQLILFDQW UHODWLRQVKLSV ZHUH RI FRQFHUQ LQ WKH VWXG\ WKH OHDVW LPSRUWDQW RI WKHVH UHODWLRQVKLSV ZHUH DVFHUWDLQHG GXULQJ WKH HDUO\ REVHUYDWLRQ DQG LQWHUYLHZ VWDJH 7KHLU RPLVVLRQ UHVXOWHG LQ WKH HPSW\ FHOOV RI 7DEOH :RUN IORZ LQWHJUDWLRQ LV KLJKHVW EHWZHHQ JURXSV DQG D UHVSRQVHf DQG WKH ORZHVW RU DOPRVW QRQLQWHJUDWHG EHWZHHQ JURXSV DQG D UHVSRQVH RI f *HQHUDOO\ LQ 3ODQW & WKH GHJUHH RI LQWHUn JURXS ZRUN IORZ LV ODUJHO\ QRQLQWHJUDWHG IRU JURXSV DQG ZKLOH IRU WKH UHPDLQLQJ JURXSV WKHUH H[LVWV D IDLU WR FRQVLGHUDEOH GHJUHH RI LQWHJUDWLRQ LQ ZRUN IORZV 6SDWLDO3K\VLFDO7HPSRUDO )DFWRUV ,QWUDJURXS VSW IDFWRUV :RUN JURXS H[KLELWV D KLJK GHJUHH RI FRQFHQWUDWLRQ ZLWKLQ WKHLU JURXS D UHVSRQVHf 7KH UHVSRQVHV RI JURXSV DQG LQGLFDWH D VOLJKWO\ OHVV DPRXQW RI FRQFHQWUDWLRQ ZKLOH ZRUN JURXSV DQG GHVFULEHG WKHLU JURXSV DV EHLQJ WKH PRVW GLVSHUVHG RI WKH VHYHQ JURXSV EXW VWLOO RQO\ D PRGHUDWH GHJUHH RI VHSDUDWLRQ ZLWKLQ WKHLU UHVSHFWLYH JURXS ,QWHUJURXS VSW IDFWRUV :RUN JURXS LQGLFDWHG WKH KLJKHVW GHJUHH RI VHSDUDWLRQ IURP JURXSV DQG D UHVSRQVHf IROORZHG E\ ZRUN JURXS "V DQG UHVSRQVHV LQ GHVFULELQJ WKHLU LQWHUJURXS UHODWLRQV ZLWK JURXSV DQG 7KH GHJUHH RI FRQFHQWUDWLRQ EHWZHHQ JURXSV DQG UHVSRQVHf $ DQG EHWZHHQ JURXSV DQG UHVSRQVHf LQGLFDWHV D IDLUO\ KLJK DPRXQW RI FRQFHQWUDWLRQ EHWZHHQ WKHVH JURXSV

PAGE 117

*HQHUDOO\ JLYHQ WKH LQWHUJURXS VSW IDFWRUV WKDW ZHUH PHDVXUHG 3/DQW & FDQ EH FKDUDFWHUL]HG DV KDYLQJ GHSDUWPHQWV WKDW DUH IDLUO\ GLVSHUVHG IURP HDFK RWKHU :RUN 'HPDQGV :RUN JURXS GHVFULEHG WKHLU ZRUN GHPDQGV DV EHLQJ FRQVLGHUDEO\ VWDEOH IURP ZHHN WR ZHHN :RUN JURXSV DQG IHOW WKDW WKHLU ZRUN GHPDQGV ZHUH VWDEOH DERXW KDOI WKH WLPH ZKHUHDV JURXSV DQG ZLWK UHVSRQVHV RI DQG UHVSHFWLYHO\f ZHUH RI WKH RSLQLRQ WKDW WKHLU ZRUN GHPDQGV H[KLELWHG VRPH XQVWDELOLW\ IURP ZHHN WR ZHHN +HXULVWLFV ,Q GHVFULELQJ WKLV ODVW YDULDEOH ZLWKLQ WKH SULPDU\ VWUXFWXUDO FDWHJRU\ JURXSV DQG LQGLFDWHG D YHU\ KLJK GHJUHH RI SUHGLFWDELOLW\ LQ WKHLU DFWLRQV DQG UHVSRQVHVf *URXSV DQG DOVR LQGLFDWHG WKDW WKH\ XVXDOO\ DUH DEOH WR SUHGLFW WKH RXWFRPH RI DFWLRQV RU GHFLVLRQV EXW WR D OHVVHU H[WHQW UHVSRQVHV RI DQG f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n LQJ WKH PHGLDWLQJ VWUXFWXUDO YDULDEOHV RI IRUPDO DXWKRULW\ UHODWLRQVKLSV FRQWURO V\VWHP DQG LQIRUPDWLRQ V\VWHP RI 3ODQW &

PAGE 118

)RUPDO DXWKRULW\ 7KH VXEYDULDEOHV RI GHOHJDWLRQ OHYHOV DQG GHSDUWPHQWDWLRQ FRPSULVH WKH PDLQ YDULDEOH RI IRUPDO DXWKRULW\ UHODWLRQVKLSV 7KH UHVSRQVHV WR WKH WKUHH VXEYDULDEOHV DUH DYHUDJHG WR REWDLQ WKH UHVSRQVH YDOXH GHSLFWLQJ IRUPDO DXWKRULW\ 7KH GLVFXVVLRQ LV LQ WHUPV RI WKH PDLQ YDULDEOH 7KH IRUPDO DXWKRULW\ UHODWLRQVKLSV DUH ODUJHO\ XQVSHFLILHG IRU ZRUN JURXS UHVSRQVH RI f 7KH VLWXDWLRQ LV RQH RI PRUH VSHFLILF IRUPDOL]DWLRQ RI WKH DXWKRULW\ UHODWLRQVKLSV LQ JURXSV DQG EXW VWLOO QRW GHILQHG LQ GHWDLO IRU WKHVH JURXSV *URXS LQGLFDWHG WKH KLJKHVW GHJUHH RI GHILQLWLRQ DQG VSHFLILFDWLRQ RI WKH IRUPDO DXWKRULW\ UHODWLRQVKLSV ZLWK D UHVSRQVH RI &RQWURO 6\VWHP :RUN JURXS LQGLFDWHG WKDW WKHUH H[LVWV DOPRVW QR VSHFLILFDWLRQ RI VWDQGDUGV PHDVXULQJ LQVWUXPHQWV RU D V\VWHP WR DOORFDWH UHZDUGV SHQDOWLHV ZLWKLQ WKHLU ZRUN JURXS D UHVSRQVHf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

PAGE 119

UHVSRQVHVf 7KH UHPDLQLQJ JURXSV IDOO EHWZHHQ WKHVH WZR H[WUHPHV ZLWK D V\VWHP WKDW FDQ EH GHVFULEHG DV SDUWLDOO\ IRUPDOL]HG 7$%/( 3/$17 & $9(5$*( 5(63216( 72 0(',$7,1* 6758&785$/ 48(67,211$,5( ,7(06 %< 9$5,$%/( $1' :25. *5283 :RUN *URXS 9DULDEOH L )RUPDO $XWKRULW\ 'HOHJDWLRQ /HYHOV f§ 'HSDUWPHQWDWLRQ &RQWURO 6\VWHP ,QIRUPDWLRQ 6\VWHP ,QWUDJURXS ,QWHUJURXS 9HUWLFDO ,QWHUJURXS LQIRUPDWLRQ V\VWHP $OO VHYHQ ZRUN JURXSV FDQ EH FKDUDFWHUL]HG DV SRVVHVVLQJ VRPH DVSHFWV RI D IRUPDOL]HG V\VWHP DQG DW WKH VDPH WLPH VRPH RI DQ XQIRUn PDOL]HG RQH UHJDUGLQJ LQWHUJURXS FRPPXQLFDWLRQV *URXS LQGLFDWHG D WKH VLPSOHVW V\VWHP D UHVSRQVH RI f ZKHUHDV JURXS GHVFULEHG WKHLU LQWHUJURXS V\VWHP DV VRPHZKDW PRUH FRPSOH[ f

PAGE 120

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ffGHPRFUDWLFf OHDGHUVKLS LQGLFDWRUV UHVSRQVHV RI WR DUH ffJHQHUDOf VW\OHV DQG UHVSRQVHV RI WR DUH ffDXWRn FUDWLFf OHDGHUVKLS H[DPSOHV 5HVSRQVHV WR WKH PLVFHOODQHRXV OHDGHUn VKLS GLPHQVLRQV DUH WR EH GHVFULEHG DV ffORZ FRPSHWHQF\f IRU YDOXHV UDQJLQJ IURP WR ffPRGHUDWH FRPSHWHQF\f IRU UHVSRQVHV IURP WR DQG KLJK FRPSHWHQF\f H[DPSOHV IRU UHVSRQVHV RI WR 3ODQW 0DQDJHUnV /HDGHUVKLS VW\OH 7DEOH UHSRUWV WKH DYHUDJH UHVSRQVHV RI WKH DVVLVWDQW SODQW PDQDJHU DQG WKH VXSHUYLVRUV RI ZRUN JURXSV WKURXJK WR WKH OHDGHUn VKLS TXHVWLRQQDLUH HYDOXDWLQJ WKH OHDGHUVKLS VW\OH RI WKH SODQW PDQDJHU RI 3ODQW & &RQVLGHULQJ WKH HLJKW GLPHQVLRQV RI UHSUHVHQWDWLRQ LQWHUDFWLRQ VWDQGDUGV JRDO HPSKDVLV SDUWLFLSDWLRQ GLUHFWLRQ UXOH RULHQWDWLRQ DQG PRWLYDWLRQ DV D ZKROH WR FKDUDFWHUL]H WKH VW\OH RI WKH SODQW PDQDJHU WKH DYHUDJH UHVSRQVHV LQGLFDWH WKDW KLV OHDGHUVKLS VW\OH LV FOHDUO\ D

PAGE 121

7$%/( 3/$17 & $9(5$*( 5(63216( 2) 7+( $66,67$17 3/$17 0$1$*(5 $1' )285 683(59,6256 72 /($'(56+,3 48(67,211$,5( (9$/8$7,1* 7+( 3/$17 0$1$*(5n6 /($'(56+,3 67
PAGE 122

JHQHUDOf RQH ZLWK RQO\ UHSUHVHQWDWLRQf IDOOLQJ ZLWKLQ WKH GHPRFUDn WLF FODVVLILFDWLRQ 7KH UHVSRQVHV WR WKH PLVFHOODQHRXV GLPHQVLRQV PHDVXULQJ WKH SODQW PDQDJHUfV FRPSHWHQF\ DOO OLH ZLWKLQ WKH KLJK FRPSHWHQF\ DUHD )LJXUH $SSHQGL[ ) GHSLFWV WKH OHDGHUVKLS SURILOH RI WKH SODQW PDQDJHU EDVHG XSRQ WKH DYHUDJH UHVSRQVHV UHSRUWHG LQ 7DEOH $VVLVWDQW 3ODQW 0DQDJHUfV /HDGHUVKLS 6 7KH DYHUDJH UHVSRQVHV RI VXSHUYLVRUV DQG WR WKH OHDGHUVKLS TXHVWLRQQDLUH HYDOXDWLQJ WKH DVVLVWDQW SODQW PDQDJHU DUH UHSRUWHG LQ 7DEOH 7KH WKUHH VXSHUYLVRUV LQGLFDWHG WKDW WKH OHDGHUVKLS VW\OH RI WKH DVVLVWDQW SODQW PDQDJHU ZDV D JHQHUDO RQH $OO UHVSRQVHV EHLQJ ZLWKLQ WKH DQG UDQJH 6WDQGDUGV UHFHLYHG WKH ORZHVW UHSRQVH f WHQGLQJ WRZDUG D GHPRFUDWLF VW\OH ZKLOH UHVSRQVHV WR WKH GLUHFWLRQ GLPHQVLRQ LQGLFDWHG D WHQGHQF\ WRZDUG DQ DXWRFUDWLF OHDGHUVKLS VW\OH ,Q GHVFULELQJ WKH FRPSHWHQF\ RI WKH DVVLVWDQW SODQW PDQDJHU WKH WKUHH VXSHUYLVRUV IHOW WKDW KH SRVVHVVHG D PRGHUDWHO\ KLJK GHJUHH RI FRPSHWHQF\ LQ WKH IRXU DUHDV PHDVXUHG 7KH OHDGHUVKLS SURILOH RI WKH DVVLVWDQW SODQW PDQDJHU LV LQFOXGHG LQ $SSHQGL[ ) )LJXUH 6XSHUYLVRUVf /HDGHUVKLS 6W\OHV 7DEOH UHSRUWV WKH DYHUDJH UHVSRQVHV RI WKH IRUHPHQ DQG RWKHU VDODULHG SHUVRQQHO RI ZRUN JURXSV DQG WR WKH OHDGHUVKLS r TXHVWLRQQDLUH GHVFULELQJ WKHLU LPPHGLDWH VXSHULRUfV OHDGHUVKLS VW\OH 7KH GLVFXVVLRQ LQ WKLV VHFWLRQ LV LQ WHUPV RI WKH WZHOYH OHDGHUn VKLS GLPHQVLRQV GHVFULELQJ WKH VW\OHV RI IRXU VHOHFWHG VXSHUYLVRUV RI 3ODQW &

PAGE 123

7$%/( 3/$17 & $9(5$*( 5(63216( 2) 683(59,6256 DQG 72 /($'(56+,3 48(67,211$,5( (9$/8$7,1* 7+( $66,67$17 3/$17 0$1$*(5n6 /($'(56+,3 67
PAGE 124

,OO 7$%/( 3/$17 & $9(5$*( 5(63216( 2) )25(0(1 $1' 27+(5 6$/$5,(' 3(56211(/ 72 /($'(56+,3 48(67,211$,5( (9$/8$7,1* 7+(,5 ,00(',$7( 683(5,25n6 /($'(56+,3 67
PAGE 125

5HSUHVHQWDWLRQ 6XSHUYLVRU LV GHVFULEHG E\ KLV VXERUGLQDWH DV PRUH RIWHQ UHSUHn VHQWLQJ XSSHU PDQDJHPHQW WKDQ KLV RZQ ZRUN JURXS ffDXWRFUDWLFn OHDGHUVKLS VW\OH 7KH RWKHU WKUHH VXSHUYLVRUV DUH FKDUDFWHUL]HG E\ WKHLU VXERUGLQDWHV DV HPSOR\LQJ D JHQHUDO VW\OH ,QWHUDFWLRQ $OO IRXU VXSHUYLVRUV DUH GHVFULEHG DV HQFRXUDJLQJ D JHQHUDO SHUVRQDO LQWHUDFWLRQ ZLWKLQ WKHLU JURXSV 7KH UHVSRQVHV UDQJHG DFURVV WKH FHQWHU RI WKH FRQWLQXXP IURP WR 6WDQGDUGV 6XSHUYLVRUV DQG DUH GHVFULEHG DV XQLODWHUDOO\ HPSKDVL]LQJ UHODWLYHO\ KLJK VWDQGDUGV IRU WKHLU JURXSV DQ DXWRFUDWLF OHDGHUn VKLS VW\OH 6XSHUYLVRUV DQG DUH HPSOR\LQJ D JHQHUDO VW\OH LQ WKH RSLQLRQ RI WKHLU VXERUGLQDWHV *RDO HPSKDVLV ,QGLYLGXDO DV RSSRVHG WR JURXS JRDO HPSKDVLV LV VWUHVVHG E\ VXSHUn YLVRUV DQG DXWRFUDWLF VW\OH $ JHQHUDO RULHQWDWLRQ LV IROORZHG E\ VXSHUYLVRUV DQG LQ WKDW WKH\ WHQG WR HPSOR\ D FRPELQDn WLRQ RI JURXS DQG LQGLYLGXDO JRDO HPSKDVHV 3DUWLFLSDWLRQ *HQHUDO SDUWLFLSDWLRQJ OHDGHUVKLS VW\OHV EHVW GHVFULEH WKH IRXU VXSHUYLVRUV HYDOXDWHG $OO UHVSRQVHV IDOO ZLWKLQ WKLV GHVFULSWLYH FDWHJRU\

PAGE 126

'LUHFWLRQ *HQHUDO GLUHFWLRQ LV HPSOR\HG E\ WKH VXSHUYLVRUV DFFRUGLQJ WR WKH UHVSRQVHV RI WKHLU VXERUGLQDWHV 6XSHUYLVRU ZDV GHVFULEHG DV WHQGLQJ WRZDUG DQ DXWRFUDWLF VW\OH D UHVSRQVH RI f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f ZKHUHDV VXSHUYLVRU ZDV FKDUDFWHUL]HG DV RQO\ SRVVHVVLQJ PRGHUDWH FRPSHWHQF\ LQ KLV MRE DFWLRQ RULHQWDWLRQ

PAGE 127

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

PAGE 128

$VVLVWDQW 3ODQW 0DQDJHUn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f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nV GHFLVLRQV ZHUH GHVFULEHG LQ D PDQQHU WR DOORZ WKHLU LQFOXVLRQ LQ WKH JHQHUDO EHKDYLRU JURXSLQJ

PAGE 129

7$%/( 3/$17 & 5(63216( 2) 7+( $66,67$17 3/$17 0$1$*(5 72 %(+$9,25 48(67,211$,5( '(6&5,%,1* (03/2<(( %(+$9,25 2) :25. *52836 DQG 9DULDEOH 5HVSRQVH ,QGLYLGXDO %HKDYLRU -RE ,QYROYHPHQW &RPPLWPHQW WR 0HHWLQJ 6WDQGDUGV ,QLWLDWLYH 6HOI,PSURYHPHQW :RUN*RDO &RPPLWPHQW )UXVWUDWLRQ /HYHOV 6HQVH RI $FKLHYHPHQW $EVHQWHHLVP 7XUQRYHU ,QWUDJURXS %HKDYLRU /DWHUDO 5HODWLRQV &RQILGHQFH DQG 7UXVW -RE 5HODWHG &RPPXQLFDWLRQ 1RQ-RE 5HODWHG &RPPXQLFDWLRQ f &RRSHUDWLRQ 3DWWHUQV *URXS 8QLW\ ,QWHUDFWLRQ RII WKH -RE ,QWUDJURXS %HKDYLRU 9HUWLFDO 5HODWLRQV 7UXVW DQG &RQILGHQFH'RZQZDUG 7UXVW DQG &RQILGHQFH8SZDUG 5HTXHVWHG ,QIRUPDWLRQ &RPPXQLFDWLRQ 6FUHHQLQJ -RE ,QIRUPDWLRQ +XPDQ 5HODWLRQV ,QIRUPDWLRQ &RRSHUDWLRQ DQG 7HDPZRUN $FFHSWDQFH RI ,PPHGLDWH 6XSHUYLVRU 'HFLVLRQV $FFHSWDQFH RI +LJKHU /HYHO 0DQDJHPHQW 'HFLVLRQV $FFHSWDQFH RI 6WDII *URXS 'HFLVLRQV ,QWHUJURXS %HKDYLRU &RQILGHQFH DQG 7UXVW &RPPXQLFDWLRQV $FFXUDF\ &RPPXQLFDWLRQV 6FUHHQLQJ ,QIRUPDO &RPPXQLFDWLRQV &RRSHUDWLRQ DQG 7HDPZRUN 7HDP 6SLULW $FFHSWDQFH RI 'HFLVLRQV ,QWHUDFWLRQ 3DWWHUQV

PAGE 130

,QWHUJURXS EHKDYLRU 2I WKH HLJKW YDULDEOHV FRPSULVLQJ LQWHUJURXS EHKDYLRU RQO\ WKH UHVSRQVH WR WKH LQWHUDFWLRQ SDWWHUQV TXHVWLRQ IDOOV ZLWKLQ D JURXSLQJ RWKHU WKDQ nfSRVLWLYH EHKDYLRU ,Q GHVFULELQJ WKLV YDULDEOH WKH DVVLVWDQW SODQW PDQDJHU LQGLFDWHG D JHQHUDO EHKDYLRU RULHQWDWLRQ RQ WKH SDUW RI ZRUN JURXSV DQG )LJXUH $SSHQGL[ ) UHSUHVHQWV WKH EHKDYLRUDO SURILOH RI WKH WKUHH ZRUN JURXSV EDVHG XSRQ WKH DVVLVWDQW PDQDJHUnV UHVSRQVHV 7KH SURILOH KLJKOLJKWV WKH SRVLWLYH EHKDYLRU RULHQWDWLRQ RI KLV UHVSRQVHV 6XSHUYLVRUVn 'HVFULSWLRQ RI (PSOR\HH %HKDYLRU 7DEOH UHSUHVHQWV WKH LQGLYLGXDO UHVSRQVHV RI VXSHUYLVRUV DQG WR WKH EHKDYLRU TXHVWLRQQDLUH GHVFULELQJ WKHLU HPSOR\HHVn EHKDYLRU 7KH GLVFXVVLRQ LQ WKLV VHFWLRQ LV WR EH LQ WHUPV RI WKH IRXU VXSHUYLVRUVn UHVSRQVHV WR WKH IRXU PDMRU FDWHJRULHV RI EHKDYLRU ,QGLYLGXDO EHKDYLRU ,Q UHSO\LQJ WR WKH QLQH YDULDEOHV FRPSULVLQJ WKLV FDWHJRU\ RI EHKDYLRU VXSHUYLVRU LQGLFDWHG HLJKW GHVFULSWLYH UHVSRQVHV IDOOLQJ ZLWKLQ WKH SRVLWLYH EHKDYLRU JURXSLQJ 7KH DEVHQWHHLVP TXHVWLRQ GUHZ WKH RQO\ QHJDWLYH W\SH RI UHSO\ IURP VXSHUYLVRU D UHVSRQVH RI f 6XSHUYLVRU UHVSRQGHG LQ D PDQQHU WR DOORZ WKUHH YDULDEOHV RI LQGLYLGXDO EHKDYLRU WR EH SODFHG LQ WKH QHJDWLYH JURXSLQJ WKH KLJKHVW QXPEHU RI QHJDWLYH UHVSRQVHV RI WKH IRXU VXSHUYLVRUV 7ZR RI WKH QLQH YDULDEOHV PHDVXULQJ LQGLYLGXDO EHKDYLRU KDG WZR VXSHUYLVRUV LQGLFDWLQJ D QHJDWLYH GHVFULSWLYH UHVSRQVH f FRPPLWPHQW WR PHHWLQJ VWDQGDUGV VXSHUYLVRUV DQG DQG f DEVHQWHHLVP VXSHUYLVRUV DQG

PAGE 131

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f§

PAGE 132

*HQHUDOO\ WKH RULHQWDWLRQ RI WKH IRXU VXSHUYLVRUV LQ GHVFULELQJ LQGLYLGXDO HPSOR\HH EHKDYLRU LV GHFLGHGO\ LQ WKH SRVLWLYH EHKDYLRU JURXSLQJ 2I WKH WKLUW\VL[ WRWDO UHVSRQVHV D [ PDWUL[f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

PAGE 133

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f FRRSHUDWLRQ DQG WHDPZRUN DQG LQWHUJURXS LQWHUDFWLRQ SDWWHUQV 6XSHUYLVRUV DQG DOVR LQGLFDWHG QHJDWLYH EHKDYLRU IRU WKHLU ZRUN JURXSV YLVDYLV LQWHUDFWLRQ SDWWHUQV %HKDYLRUDO SURILOHV EDVHG XSRQ WKH VXSHUYLVRUVI GHVFULSWLRQV RI WKHLU HPSOR\HHV EHKDYLRU DUH LQFOXGHG LQ $SSHQGL[ ) )LJXUHV WKURXJK 7KH VXSHUYLVRUVn LPPHGLDWH VXERUGLQDWHVn UHVSRQVHV WR WKH EHKDYLRUDO TXHVWLRQQDLUH DUH WKH WRSLF RI GLVFXVVLRQ LQ WKH ODVW VHFWLRQ RI WKH FKDSWHU ZKLFK IROORZV )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHOnV 'HVFULSWLRQ RI (PSOR\HH %HKDYLRU 7DEOH UHSRUWV WKH EHKDYLRUDO GHVFULSWLRQ RI ZRUN JURXSV DQG 3ODQW & EDVHG XSRQ WKH SHUFHSWLRQnV RI WKH IRUHPHQ DQG RWKHU VDODULHG SHUVRQQHO RI WKH VDPH ZRUN JURXSV 7KH GLVFXVVLRQ LQ WKLV ILQDO VHFWLRQ RI WKH FKDSWHU IROORZV WKH DSSURDFK XVHG SUHYLRXVO\ LQ GHVFULELQJ HPSOR\HH EHKDYLRU

PAGE 134

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b 6XSHUYLVRU 'HFLVLRQV $FFHSWDQFH RI +LJKHU /HYHO 0DQDJHPHQW 'HFLVLRQV $FFHSWDQFH RI 6WDII *URXS 'HFLVLRQV ,QWHUJURXS %HKDYLRU &RQILGHQFH DQG 7UXVW &RPPXQLFDWLRQV $FFXUDF\ &RPPXQLFDWLRQV 6FUHHQLQJ ,QIRUPDO &RPPXQLFDWLRQV &RRSHUDWLRQ DQG 7HDPZRUN 7HDP 6SLULW $FFHSWDQFH RI 'HFLVLRQV ,QWHUDFWLRQ 3DWWHUQV

PAGE 135

,QGLYLGXDO EHKDYLRU ,Q GHVFULELQJ WKH LQGLYLGXDO EHKDYLRU RI ZRUN JURXS WKH UHVSRQVHV ZHUH VXFK WR DOORZ WKH JURXS WR IDOO WRWDOO\ ZLWKLQ WKH JHQHUDO EHn KDYLRU JURXSLQJ :RUN JURXS LQGLFDWHG WKH KLJKHVW QXPEHU RI QHJDWLYH FKDUDFWHULVWLFV IRU HPSOR\HHV ZKLOH DW WKH VDPH WLPH LQGLFDWLQJ D OLNH QXPEHU RI SRVLWLYH EHKDYLRU IDFWRUV 7KH HPSOR\HHV ZHUH SHUFHLYHG DV H[KLELWLQJ D KLJK GHJUHH RI MRE LQYROYHPHQW ORZ OHYHOV RI IUXVWUDn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

PAGE 136

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f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fV UHVSRQVHV LV FOHDUO\ KLJKOLJKWHG LQ WKH SURILOHV &KDSWHU 9, ZLOO FRQWUDVW WKH VWUXFWXUH OHDGHUVKLS DQG EHKDYLRU RI WKH WKUHH SODQWV LQ WKH UHVHDUFK VWXG\

PAGE 137

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n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
PAGE 138

VDPH OHDGHUVKLS VW\OHV DQG DOPRVW VLPLODU GHJUHHV RI FRPSHWHQF\ ZHUH H[KLELWHG ZLWKLQ WKH WKUHH SODQWV 7KH EHKDYLRUDO SDWWHUQV WKDW UHVXOWHG ZLWKLQ WKH SODQWV ZHUH YHU\ VLPLODU LQ HDFK LQVWDQFH 2QO\ LQGLYLGXDO EHKDYLRU GLIIHUHG 7KH GLVn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n VHQWDWLRQV 7KH FHQWUDO WKHVLV RI WKH 0HOFKHU 0RGHO LV WKDW EHKDYLRU LV FDXVHG E\ LGHQWLILDEOH YDULDEOHV 7KH SULPDU\ DQG PHGLDWLQJ VWUXFWXUDO YDULDEOHV DQG WKH OHDGHUVKLS VW\OHV DQG FRPSHWHQF\ RI PDQDJHPHQW DUH WKH LQIOXHQFn LQJ IDFWRUV RQ LQGLYLGXDO LQWUDJURXS DQG LQWHUJURXS EHKDYLRU 7DEOH VXPPDUL]HV WKHVH YDULDEOHV IRU WKH WKUHH SODQWV RI WKH UHVHDUFK VWXG\ 7KH RQO\ GLIIHUHQFH LQ EHKDYLRU PHDVXUHG EHWZHHQ 3ODQWV $ DQG % LV LQ WKH DUHD RI LQGLYLGXDO EHKDYLRU 3ODQW $ H[KLELWV JHQHUDO LQGLYLGXDO EHKDYLRU ZKLOH 3ODQW % LV FKDUDFWHUL]HG E\ QHJDWLYH LQGLYLGXDO EHKDYLRU 5HYLHZ ;,,, 1R f $OVR 5 /LNHUW $Q (PHUJLQJ 7KHRU\ RI 2UJDQL]DWLRQ /HDGHUVKLS DQG 0DQDJHPHQW LQ / 3HWUXOOR DQG % %DVV HGVf /HDGHUVKLS DQG ,QWHUSHUVRQDO %HKDYLRU 1HZ
PAGE 139

7$%/( 6800$5< 2) 6758&785$/ /($'(56+,3 $1' %(+$9,25$/ )$&7256 2) 3/$176 $ % $1' & & ‘ ‘ ‘ ‘ f§f§‘ ‘ ‘ ‘ ‘ f§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
PAGE 140

7KLV GLIIHUHQFH EHWZHHQ 3ODQWV $ DQG % VL]H LQWUDJURXS ZRUN IORZ LQWHUJURXS ZRUN IDFWRUV DQG WKH FRQWURO V\VWHP YDULDEOHV DOLNH EHWZHHQ WKH WZR SODQWV FDQ EH DWWULEXWHG WR WKH IORZ LQWUDJURXS VSW $OO RWKHU YDULDEOHV DUH 6L]H 7KH PHGLXP VL]H RI )ODQW $ LV DVVRFLDWHG ZLWK JHQHUDOf LQGLYLGXDO EHKDYLRU ZKHUHDV WKH VPDOO VL]H RI 3ODQW % UHVXOWV LQ QHJDWLYH EHn KDYLRU 7KLV LV QRW LQ NHHSLQJ ZLWK WKH PDMRULW\ RI DYDLODEOH OLWHUDWXUH &RQVLVWHQWO\ WKH VWXGLHV KDYH VKRZQ WKDW DV VL]H LQFUHDVHV FHUWDLQ LQn GLYLGXDO EHKDYLRU IDFWRUV GHFUHDVH 7KDW LV DQ LQYHUVH UHODWLRQVKLS H[LVWV EHWZHHQ VL]H DQG LQGLYLGXDO EHKDYLRU $ VWXG\ E\ %DOHV DQG 4 %RUJRWWD SDUWLDOO\ VXSSRUWV WKLV DSSDUHQW LQFRQVLVWHQF\ ,Q WKH VWXG\ YHU\ VPDOO JURXSV ZHUH VKRZQ WR H[KLELW PRUH WHQVLRQ DJUHHPHQW DQG DVNHG IRU RSLQLRQV PRUH WKDQ LQ WKH ODUJHU JURXSV 7KH ODUJHU JURXSV 6HH -DPHV & :RUWK 2UJDQL]DWLRQDO 6WUXFWXUH DQG (PSOR\HH 0RUDOH $PHULFDQ 6RFLRORJLFDO 5HYLHZ ;9 $SULO f $OVR +RZDUG %DXPJDUWHO DQG 5RQDOG 6RERO %DFNJURXQG DQG 2UJDQL]DWLRQDO )DFWRUV LQ $EVHQWHHLVP 3HUVRQQHO 3V\FKRORJ\ ;,, f $OVR VHH 5 : 5HYDQV +XPDQ 5HODWLRQV 0DQDJHPHQW DQG 6L]H LQ ( 0 +XJK -RQHV HGf +XPDQ 5HODWLRQV DQG 0RGHUQ 0DQDJHPHQW &KLFDJR 4XDQGUDQJOH %RRNV f 6KHUULOO &OHODQG 7KH ,QIOXHQFH RI 3ODQW 6L]H $PRQJ ,QGXVWULDO 5HODWLRQV 3ULQFHWRQ 1 3ULQFHWRQ 8QLYHUVLW\ 3UHVV f $OVR 5 0DUULRWW 6L]H RI :RUNLQJ *URXS DQG 2XWSXW 2FFXSDWLRQDO 3V\FKRORJ\ ;;,,, -DQXDU\ f $OVR VHH /\PDQ : 3RUWHU DQG (GZDUG ( /DZOHU ,,, 3URSHUWLHV RI 2UJDQL]DWLRQDO 6WUXFWXUH LQ 5HODWLRQ WR -RE $WWLWXGHV DQG -RE %HKDYLRU 3V\FKRORJLFDO %XOOHWLQ /;,9 -XO\ f $OVR %HUQDUG 3 ,QGLN 6RPH (IIHFWV RI 2UJDQL]DWLRQDO 6L]H DQG 0HPEHU 3DUWLFLSDWLRQ 6RPH (PSLULFDO 7HVWV RI $OWHUQDWLYH ([SODQDWLRQV +XPDQ 5HODWLRQV ;9,,, 1RYHPEHU f )LQDOO\ VHH 3KLOLS ( 6ODWHU &RQWUDVWLQJ &RUUHODWHV RI *URXS 6L]H 6RFLRPHWU\ ;;, f 5 ) %DOHV DQG ( ) %RUJRWWD 6L]H RI *URXS DV D )DFWRU LQ WKH ,QWHUDFWLRQ 3URILOH LQ $ 3 +DUH ( ) %RUJRWWD DQG 5 ) %DOHV HGVf 6PDOO *URXSV 1HZ
PAGE 141

VKRZHG PRUH WHQVLRQ UHOHDVH JLYLQJ RI VXJJHVWLRQV DQG LQIRUPDWLRQA ,I ZH DFFHSW WKH ILQGLQJV RI WKH PDMRULW\ RI WKH SUHVHQW ILHOG UHVHDUFK VWXGLHV WKHQ VRPH YDULDEOH RWKHU WKDQ ffVL]H LV SURGXFLQJ WKH QHJDWLYHf LQGLYLGXDO EHKDYLRU HYLGHQFH LQ 3ODQW % 2QH VXFK SRVVLELOLW\ LV ZRUN IORZ :RUN )ORZ ,QWUDJURXS DQG ,QWHUJURXS $ VOLJKWO\ QRQLQWHUJUDWHG LQWUDJURXS ZRUN IORZ H[LVWV LQ 3ODQW $ ZKHUHDV D VOLJKWO\ LQWHJUDWHG RQH LV WKH VLWXDWLRQ IRU 3ODQW % 7KH VOLJKWO\ LQWHJUDWHG ZRUN IORZ H[LVWV DOVR LQ 3ODQW % IRU LQWHUJURXS VLWXDWLRQV 3ODQW $ KDG D QRQLQWHJUDWHGLQWHJUDWHG LQWHUJURXS ZRUN IORZ $YDLODEOH OLWHUDWXUH RQ WKH G\VIXQFWLRQDO FRQVHTXHQFHV RI VSHFLDOLn ]DWLRQ VXSSRUWV RXU ILQGLQJV RI QHJDWLYH LQGLYLGXDO EHKDYLRU LQ 3ODQW %A ,W LV DSSDUHQWO\ SDUWLDOO\ DVVRFLDWHG ZLWK WKH LQWHJUDWHG ZRUN IORZ ZLWKLQ DQG DPRQJ WKH ZRUN JURXSV RI 3ODQW % %XW DWWULEXWLQJ WKH QHJDWLYH EHKDYLRU RI 3ODQW % WR WKH GHJUHH RI VSHFLDOL]DWLRQ ZRXOG EH DQ RYHU VLPSOLILFDWLRQ 7KH UHVHDUFK OLWHUDWXUH UHYHDOV WKH SRVVLELOLW\ A,ELG SS A6HH &KDUOHV 5 :DONHU DQG 5REHUW + *XHVW 7KH 0DQ RQ WKH $VVHPEO\ /LQH &DPEULGJH 0DVV +DUYDUG 8QLYHUVLW\ 3UHVV f $OVR VHH &KULV $UJ\ULV 7KH ,QGLYLGXDO DQG WKH 2UJDQL]DWLRQ $Q (PSLULFDO 7HVW $GPLQLVWUDWLYH 6FLHQFH 4XDUWHUO\ ,9 1R f $OVR &KDUOHV / +XOLQ DQG 0 5 %ORRG -RE (QODUJHPHQW ,QGLYLGXDO 'LIIHUHQFHV DQG :RUNHU 5HVSRQVHV 3V\FKRORJLFDO %XOOHWLQ /;,; 1R f $OVR VHH -RQ 0 6KHSDUG )XQFWLRQDO 6SHFLDOL]DWLRQ DQG :RUN $WWLWXGHV ,QGXVWULDO 5HODWLRQV 9,,, 1R f $OVR (DWRQ + &RQDQW DQG 0DXULFH .LOEULGJH $Q ,QWHUGLVFLSOLQDU\ $QDO\VLV RI -RE (QODUJHn PHQW 7HFKQRORJ\ &RVW %HKDYLRUDO ,PSOLFDWLRQV ,QGXVWULDO DQG /DERU 5HODWLRQV 5HYLHZ ;9,,, $SULO f $OVR VHH -RKQ $ *ROGWKRUSH $WWLWXGHV DQG %HKDYLRU RI &0U $VVHPEO\ :RUNHUV $ 'HYLDQW &DVH DQG 7KHRUHWLFDO &ULWLTXH %XVLQHVV -RXUQDO RI 6RFLRORJ\ ;9,, f )LQDOO\ VHH 6 :\DWW DQG 1 /DQJGRQ )DWLJXH DQG %RUHGRP LQ 5HSHWLn WLYH :RUN /RQGRQ +062 f 5HSRUW 1R SS

PAGE 142

RI WKH H[LVWHQFH RI RWKHU FDXVDO YDULDEOHV LQIOXHQFLQJ LQGLYLGXDO EHKDYLRU RWKHU WKDQ WKH ZRUN IORZ IDFWRU 7ZR SRVVLELOLWLHV DUH WKH VSDWLDOSK\VLFDOWHPSRUDO IDFWRUV DQG WKH FRQWURO V\VWHP %RWK YDULDEOHV DUH WR EH GLVFXVVHG LQ WKH IROORZLQJ VHFWLRQV 637 )DFWRUV ,QWUDJURXS 7KH JHQHUDO LQGLYLGXDO EHKDYLRU RI 3ODQW $ LV DVVRFLDWHG ZLWK IDLUO\ FRQFHQWUDWHG LQWUDJURXS 637 IDFWRUV 3ODQW %nV QHJDWLYH EHKDYLRU DQG FRQFHQWUDWHGGLVSHUVHG 637 IDFWRUV DUH DOVR UHODWHG $ QXPEHU RI VWXGLHV KDYH GHDOW ZLWK WKH HIIHFWV WKDW VSDWLDOSK\VLFDO IDFWRUV KDYH XSRQ EHKDYLRU HVSHFLDOO\ LQWUDJURXS FRKHVLRQ DQG LQWHUn JURXS FRQIOLFWA 7KH PDMRULW\ RI VWXGLHV GHDOLQJ ZLWK WKH HIIHFWV RI VSDWLDOSK\VLFDO EDUULHUV ZHUH FRQFHUQHG ZLWK LQWUDDQG LQWHUJURXS EHKDYLRU )RU H[DPSOH WKH VWXGLHV FRQFHQWUDWHG RQ WKH HIIHFWV RQ FRRSHUDWLRQ LQWHUDFWLRQ DQG FRQIOLFWA 1HYHUWKHOHVV ZH FDQ DVVXPH WKDW UHGXFHG FRRSHUDWLRQ LQWHUDFWLRQ DQG LQFUHDVHG FRQIOLFW FDQ JHQHUDOO\ UHVXOW LQ OHVV VDWLVIDFWLRQ JUHDWHU IUXVWUDWLRQ DQG D ORZHUn LQJ RI WKH OHYHO RI MRE LQYROYHPHQW DQG FRPPLWPHQW H[KLELWHG E\ LQGLYLGXDOV 7KHUHIRUH HYHQ WKRXJK WKH H[WHQW RI LQWUDJURXS 637 IDFWRUV IRU 3ODQW % LV IDU IURP EHLQJ KLJKO\ GLVSHUVHG LW GRHV FRQWULEXWH WR WKH QHJDWLYH LQGLYLGXDO EHKDYLRU HYLGHQFHG IRU WKH SODQW 6HH 0X]DIHU 6KHULI % :KLWH DQG +DUYH\ 6WDWXV LQ ([SHULPHQWDOO\ SURGXFHG *URXSV $PHULFDQ -RXUQDO RI 6RFLRORJ\ /; f $OVR VHH &DUD % 5LFKDUGV DQG +HQU\ 'RE\QV 7RSRJUDSK\ DQG &XOWXUH 7KH &DVH RI WKH &KDQJLQJ &DJH +XPDQ 2UJDQL]DWLRQ ;9, 1R f A6HH -RKQ *XOODKRUQ 'LVWDQFH DQG )ULHQGVKLS DV )DFWRUV LQ WKH *URVV ,QWHUDFWLRQ 0DWUL[ 6RFLRPHWU\ ;9 f $OVR VHH :LOOLDP $ )DXQFH $XWRPDWLRQ LQ WKH $XWRPRELOH ,QGXVWU\ 6RPH &RQVHTXHQFHV IRU ,Q3ODQW 6RFLDO 6WUXFWXUH $PHULFDQ 6RFLRORJLFDO 5HYLHZ ;;,,, f $OVR 0LOHV 3DWWHUVRQ 6SDWLDO )DFWRUV LQ 6RFLDO ,QWHUDFWLRQV +XPDQ 5HODWLRQV ;;, f )LQDOO\ VHH 5REHUW 6RPPHU 6PDOO *URXS (FRORJ\ 3V\FKRORJLFDO %XOOHWLQ /;9,, f

PAGE 143

&RQWURO 6\VWHP 3ODQW $ LV FKDUDFWHUL]HG DV KDYLQJ D FRPELQDWLRQ LQVWLWXWLRQDO LQGLYLGXDO FRQWURO V\VWHP 3ODQW % GLIIHUV LQ WKDW LW KDV D VOLJKWO\ LQGLYLGXDO FRQWURO V\VWHP 7KH FRQWURO V\VWHP LV WKH ODVW YDULDEOH WR EH DQDO\]HG DV GLIIHULQJ EHWZHHQ 3ODQWV $ DQG % DQG SRVVLEO\ FRQWULEXWn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f 3 6HO]QLFN 79$ DQG WKH *UDVV 5RRWV %HUNHOH\ 8QLYHUVLW\ RI &DOLIRUQLD 3UHVV f $ : *RXOGQHU 3DWWHUQV RI ,QGXVWULDO %XUHDXFUDF\ *OHQFRH ,OO )UHH 3UHVV f 6HH /HR +DPPRQG DQG 0RUWRQ *ROGPDQ &RPSHWLWLRQ DQG 1RQn FRPSHWLWLRQ DQG ,WV 5HODWLRQVKLS WR ,QGLYLGXDO DQG *URXS 3URGXFWLYLW\

PAGE 144

$ VWXG\ E\ 0LOOHU DQG +DPEOLQ SDUWLDOO\ H[SODLQV WKH QHJDWLYH EHKDYLRU LQGLFDWHG LQ 3ODQW % ,Q WKHLU VWXG\ WKH HIIHFWV RI WDVN LQWHUGHSHQGHQFH ZRUN IORZf DQG UHZDUGV RQ SURGXFWLYLW\ MRE LQYROYHn PHQW ZRUNJRDO FRPPLWPHQW DQG FRPPLWPHQW WR PHHWLQJ VWDQGDUGV FDQ EH DVVXPHG WR EH UHODWHG WR WKH OHYHO RI SURGXFWLYLW\f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f $OVR VHH 5 0DUULRWW $Q ([SORUDWRU\ 6WXG\ RI 0HULW 5DWLQJ 3D\PHQW 6\VWHPV LQ 7KUHH )DFWRULHV 2FFXSDWLRQDO 3V\FKRORJ\ ;;;9, 2FWREHU f $OVR VHH (GZLQ $ /RFNH DQG -XGLWK ) %U\DQ 7KH (IIHFWV RI 3HUIRUPDQFH *RDOV LQ /HYHO RI 3HUIRUPDQFH -RXUQDO RI $SSOLHG 3V\FKRORJ\ / f )LQDOO\ VHH $QGUHZ & 6WHGU\ DQG (PDQXHO .D\ 7KH (IIHFWV RI *RDO 'LIILFXOW\ RQ 3HUIRUPDQFH $ )LHOG ([SHULPHQW %HKDYLRUDO 6FLHQFH ,, f / .HLWK 0LOOHU DQG 5REHUW / +DPEOLQ ,QWHUGHSHQGHQFH 'LIIHUHQWLDO 5HZDUGLQJ DQG 3URGXFWLYLW\ $PHULFDQ 6RFLRORJLFDO 5HYLHZ ;;9,,, f

PAGE 145

7KH QH[W VHFWLRQ LV FRQFHUQHG ZLWK FRQWUDVWLQJ WKH EHKDYLRU RI 3ODQWV $ DQG & DQG GHWHUPLQLQJ WKH YDULDEOHV WKDW DUH LQIOXHQFLQJ WKH EHKDYLRUDO SDWWHUQV 'LIIHUHQFHV LQ %HKDYLRU %HWZHHQ 3ODQWV $ DQG & 2I WKH IRXU PDMRU FDWHJRULHV RI EHKDYLRU RQO\ LQGLYLGXDO EHKDYLRU EHWZHHQ 3ODQWV $ DQG & GLIIHUHG 3ODQW $ H[KLELWHG nfJHQHUDOf EHKDYLRU ZKHUHDV 3ODQW & KDG SRVLWLYHf LQGLYLGXDO EHKDYLRU )ROORZLQJ WKH EDVLF WKHVLV RI WKH PRGHO WKLV GLIIHUHQFH LQ EHKDYLRU FDQ EH DWWULEXWHG WR RQH RU PRUH RI WKH VWUXFWXUDO DQGRU OHDGHUVKLS YDULDEOHV PHDVXUHG ,QVSHFWLRQ RI 7DEOH UHYHDOV WKDW VL]H LQWUDJURXS ZRUN IORZ DQG LQWHUJURXS ZRUN IORZ DUH WKH PDMRU FRQWUDVWLQJ YDULDEOHV EHWZHHQ WKH WZR SODQWV 3ODQW & DOVR KDG WZR RWKHU YDULDEOHV WKDW GLIIHUHG VOLJKWO\ IURP 3ODQW $ 637 LQWHUJURXS DQG WKH OHDGHUVKLS FRPSHWHQF\ RI WKH VXSHUYLVRUVf EXW ZHUH QRW FRQVLGHUHG DV VLJQLILFDQWO\ LQIOXHQFLQJ WKH EHKDYLRUDO SDWWHUQ ZKLFK HPHUJHG WKHUHIRUH WKHVH DUH QRW FRQVLGHUHG LQ WKH DQDO\VLV 6L]H 7KH VPDOOf VL]H RI 3ODQW & YLVDYLV WKH PHGLXPf VL]H RI 3ODQW $ SDUWLDOO\ H[SODLQV WKH SRVLWLYHf LQGLYLGXDO EHKDYLRU RI 3ODQW & 7KH SUHYLRXVO\ FLWHG UHVHDUFK OLWHUDWXUH RQ WKH LQIOXHQFH RI VL]H RQ EHKDYLRU VXSSRUWV WKLV DQDO\VLV %XW DV ZDV DOUHDG\ SRLQWHG RXWWKH DQDO\VLV RI EHKDYLRU FDQQRW EH DGHTXDWHO\ VXSSRUWHG E\ WKH HIIHFWV RI RQH YDULDEOH )RU DGGLWLRQDO VRXUFHV RQ WKH HIIHFWV RI VL]H VHH 5REHUW & =LOOHU *URXS 6L]H $ 'HWHUPLQDQW RI WKH 4XDLW/W\ DQG 6WDELOLW\ RI *URXS 'HFLVLRQVf 6RFLRPHWU\ ;; f $OVR VHH 3DXO +DUH $ 6WXG\ RI ,QWHUDFWLRQ DQG &RQVHQVXV LQ 'LIIHUHQW 6L]HG *URXSVf $PHULFDQ 6RFLRn ORJLFDO 5HYLHZ ;9,, -XQH f

PAGE 146

7KH LQWHUDFWLQJ LQIOXHQFH RI WKH FRQWUDVWLQJ ZRUN IORZV PXVW DOVR EH FRQVLGHUHG :RUN )ORZ ,QWUD DQG ,QWHUJURXS 7KH JHQHUDO LQGLYLGXDO EHKDYLRU RI 3ODQW $ LV DVVRFLDWHG ZLWK D VOLJKWO\ QRQLQWHJUDWHG LQWUDJURXS ZRUN IORZ DQG D QRQLQWHJUDWHG LQWHJUDWHG LQWHUJURXS ZRUN IORZ 7KH SRVLWLYH LQGLYLGXDO EHKDYLRU HYLGHQFHG LQ 3ODQW & LV UHODWHG WR D QRQLQWHJUDWHGLQWHJUDWHG LQWUDn JURXS DQG D VOLJKWO\ LQWHJUDWHG LQWHUJURXS ZRUN IORZ ,Q ERWK LQVWDQFHV 3ODQW & LV WR WKH ULJKW WRZDUG WKH LQWHJUDWHG HQG RI WKH PHDVXUHPHQW FRQWLQXDf RI 3ODQW $ 7KH DYDLODEOH OLWHUDWXUH RQ VSHFLDOL]DWLRQ FRQFHUQLQJ WKH SUREOHPV DVVRFLDWHG ZLWK IXQFWLRQDO JURXSLQJ DQG SURMHFW GHSDUWPHQWDWLRQ DW VXSHUn YLVRU\ OHYHOV JHQHUDOO\ VXJJHVWV WKDW D KLJK GHJUHH RI IXQFWLRQDO LQWUDn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n YHQLQJ 5HVSRQVHV WR &KDQJHV LQ 6XSHUYLVRU -RE 'HVLJQV 2FFXSDWLRQDO 3V\FKRORJ\ ;;;,; 1R -XO\ f $OVR VHH $UWKXU + :DONHU DQG -D\ : /RUVFK 2UJDQL]DWLRQDO &KRLFH 3URGXFW YV )XQFWLRQ +DUYDUG %XVLQHVV 5HYLHZ ;/9, f )LQDOO\ VHH 0HOYLOOH 'DOWRQ 0HQ :KR 0DQDJH 1HZ
PAGE 147

LQWHUJURXS 637 IDFWRUV ZKLFK ZDV GHHPHG DV LQVLJQLILFDQW GRHV LQ IDFW H[HUW SUHVVXUH RQ WKH EHKDYLRU SDWWHUQ RI 3ODQW & DQRWKHU PD\ EH WKDW WKH PRGHO LWVHOI GRHV QRW DFFRXQW IRU VRPH YDULDEOH LQIOXHQFLQJ EHKDYLRU RU WKH ILQGLQJV RI SUHYLRXV UHVHDUFK DUH LQ HUURU 1HYHUWKHOHVV WKH LQWHUSODQW DQDO\VLV DVFULEHV WKH ffSRVLWLYH LQn GLYLGXDO EHKDYLRU RI 3ODQW & WR WKH FRQWUDVWLQJ YDULDEOHV RI VL]H LQWUDJURXS ZRUN IORZ DQG LQWHUJURXS ZRUN IORZ 7KH ODVW VHFWLRQ RI WKH FKDSWHU ZKLFK IROORZV GHVFULEHV DQG DQDO\]HV WKH FRQWUDVWV EHWZHHQ 3ODQWV % DQG & RI WKH UHVHDUFK VWXG\ 'LIIHUHQFHV LQ %HKDYLRU %HWZHHQ 3ODQWV % DQG & 7DEOH LQGLFDWHV WKDW 3ODQW % KDV ffQHJDWLYH LQGLYLGXDO EHKDYLRU ZKLOH 3ODQW & LV GHVFULEHG DV SRVVHVVLQJ SRVLWLYH LQGLYLGXDO EHKDYLRU 7KH FRQWUDVWLQJ YDULDEOHV LQIOXHQFLQJ WKH EHKDYLRUDO SDWWHUQV DUH LQWUD JURXS ZRUN IORZ LQWUDJURXS 637 IDFWRUV DQG WKH FRQWURO V\VWHP 7KH YDULDEOHV RI LQWHUJURXS 637 DQG VXSHUYLVRUVf FRPSHWHQF\ DUH QRW GHHPHG WR EH VLJQLILFDQWO\ GLIIHUHQW DQG DUH WKXV GURSSHG IURP WKH LQWHUSODQW DQDO\VLV :RUN )ORZ ,QWUDJURXS 7KH QHJDWLYH LQGLYLGXDO EHKDYLRU RI 3ODQW % FDQ SDUWLDOO\ EH DVFULEHG WR WKH GHJUHH RI LQWHJUDWLRQ LQ WKH LQWUDJURXS ZRUN IORZ 3ODQW & ZLWK SRVLWLYH LQGLYLGXDO EHKDYLRU KDV OHVV LQWHJUDWLRQ D QRQ LQWHJUDWHGLQWHJUDWHG ZRUN IORZf HYLGHQFHG ZLWKLQ WKH ZRUN JURXSV RI WKH SODQW 7KH OLWHUDWXUH SUHYLRXVO\ FLWHG VXSSRUWV WKLV ILQGLQJ 7KH DQDO\VLV LV IXUWKHU VWUHQJWKHQHG E\ FRQVLGHULQJ WKH HIIHFWV RI WKH 637 IDFWRUV RQ EHKDYLRU

PAGE 148

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
PAGE 149

LQGLYLGXDO EHKDYLRU HYLGHQFHG IRU 3ODQW % UHVXOWV IURP WKH PXWXDO LQWHUn DFWLRQ RI WKH FRQWURO V\VWHP LQWUDJURXS 637 IDFWRUV DQG WKH LQWUDn JURXS ZRUN IORZ YDULDEOHV 7KH FRQWUDVWLQJ DQG FRPSDULVRQ RI WKH WKUHH SODQWV LQ WKH UHVHDUFK VWXG\ UHVXOWHG LQ D IDLUO\ FRQVLVWHQW OLWHUDWXUH VXSSRUW RI WKH EHKDYLRUDO SDWWHUQV SUHVHQW LQ WKH SODQWV $ VXPPDU\ RI WKH UHVHDUFK VWXG\ DQG LWV FRQFOXVLRQV ZLOO EH WKH WRSLF RI WKH ODVW FKDSWHU ZKLFK IROORZV ,Q DGGLWLRQ WKH TXHVWLRQ RI WKH PRGHOnV RSHUDWLRQ IHDVLELOLW\ DQG YDOXH LQ HPSLULFDO UHVHDUFK ZLOO EH GLVFXVVHG DQG 7UHYRU 6DLQVEXU\ /DERUDWRU\ DQG )LHOG 6WXGLHV RI WKH %HKDYLRUDO (IIHFWV RI $XGLWV %RQLQL HGf HM DO 0DQDJHPHQW &RQWUROV 1HZ
PAGE 150

&+$37(5 9,, 6800$5< $1' &21&/86,21 6XPPDU\ 7KH SULPDU\ REMHFWLYH RI WKLV VWXG\ ZDV WR GHVFULEH WKH EHKDYLRUDO SDWWHUQV H[LVWLQJ ZLWKLQ HDFK RI WKUHH PDQXIDFWXULQJ SODQWV LQ WHUPV RI LQIOXHQFLQJ IRUFHV E\ HPSOR\LQJ D PXOWLYDULDWH RUJDQL]DWLRQDO EHKDYLRU PRGHO 7KH PRGHO LGHQWLILHG WKH LQIOXHQFHV RI SULPDU\ VWUXFWXUDO PHGLDWn LQJ VWUXFWXUDO DQG OHDGHUVKLS DV WKH LQGHSHQGHQW YDULDEOHV 7KH GHn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n EOHV ZKLFK H[LVWHG DW WKH WLPH RI WKH VWXG\ 6XPPDU\ SURILOHV GHSLFWLQJ JUDSKLFDOO\ WKH GDWD REWDLQHG ZHUH DOVR LQFOXGHG 7KLV H[SORUDWRU\ VWXG\ DV ZDV SUHYLRXVO\ QRWHG ZDV FRQFHUQHG ZLWK WKH GHVFULSWLRQ RI WKH H[LVWLQJ VWUXFWXUH OHDGHUVKLS DQG EHKDYLRU ZLWKLQ HDFK RI WKUHH SODQWV DQG WKH DQDO\VHV RI WKH HPHUJLQJ EHKDYLRUDO

PAGE 151

SDWWHUQV DPRQJ WKH SODQWV ,Q DGGLWLRQ WKH VWXG\ KDG D VHFRQGDU\ SXUn SRVH WR XWLOL]H D QHZ V\VWHPV PRGHO DQG WKHQ WR DUULYH DW VRPH FRQFOXn VLRQV DV WR LWV RSHUDWLRQDO IHDVLELOLW\ LQ HPSLULFDO UHVHDUFK 7KH FRQFOXVLRQV UHDFKHG UHJDUGLQJ WKH LQWHUSODQW EHKDYLRUDO FRPSDULVRQV DQG WKH PRGHOrV XVHIXOQHVV IRU UHVHDUFK LV WKH WRSLF RI WKH QH[W DQG ILQDO VHFWLRQ RI WKLV VWXG\ &RQFOXVLRQ 7KH EDVLF YDOLGLW\ RI WKH PRGHO ZDV DVVXPHG EHFDXVH RI WKH WKHRUHWLn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n WHQFLHV DQG GLIIHUHQFHV EHWZHHQ WKH YDULRXV VWXGLHV DQG WKDW RI WKH UHVHDUFKHUV 7KH SRVVLELOLW\ RI DGGLWLYLW\ LQ YDULRXV UHVHDUFK HIIRUWV LV LQFUHDVHG VXEVWDQWLDOO\ ZKHQ D FRPPRQ IUDPH RI UHIHUHQFH LV XWLOL]HG

PAGE 152

7KH PRGHOfV HDVH LQ FROOHFWLQJ GDWD ZDV HYLGHQFHG LQ WKDW RQ WKH DYHUDJH RQO\ RQH KRXU ZDV QHHGHG IRU WKH UHVSRQGHQWV WR FRPSOHWH WKH TXHVWLRQQDLUHV ,Q XVLQJ TXHVWLRQQDLUHV IRU WKH GDWD FROOHFWLQJ LQn VWUXPHQWV ZKHUH WKH SDUWLFLSDQWV DUH UHTXHVWHG WR JLYH WKHLU RZQ SHUn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n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

PAGE 153

+RZ LV WKH UHVSRQGHQW WR DQVZHU WKLV TXHVWLRQ SHUWDLQLQJ WR LQGLYLGXDO MRE LQYROYHPHQW" ,V KH WR FRQVLGHU DOO HPSOR\HHV" 2QO\ WKRVH LQ KLV GHSDUWPHQW" 2U RQO\ KLV LPPHGLDWH VXERUGLQDWHV RU SHHUV DV WKH FDVH PD\ EH" ,W LV DSSDUHQW IURP WKLV WKDW WKH GHILQLWLRQV DQG FRPSRVLWLRQ RI b WKH YDULRXV XQLWV XQGHU VWXG\ PXVW EH FOHDUO\ GHOLQHDWHG DQG XQGHUVWRRG E\ DOO SDUWLFLSDQWV $ IXUWKHU FRQFOXVLRQ DV D UHVXOW RI WKH VWXG\ KDV WR GR ZLWK WKH EHVW VWUDWHJ\ WR HPSOR\ LQ FROOHFWLQJ GDWD $OO WKH TXHVWLRQQDLUHV ZHUH DGPLQLVWHUHG DW WKH VDPH WLPH WKH SULPDU\ VWUXFWXUDO PHGLDWLQJ VWUXFWXUDO OHDGHUVKLS DQG EHKDYLRUDO 6LQFH WKH VWUXFWXUDO TXHVWLRQV UHTXLUHG QRQSHUVRQDO W\SHV RI UHVSRQVHV XQOLNH WKH SHUVRQDO RSLQLRQV DQG SHUFHSWLRQV RI WKH OHDGHUVKLS DQG EHKDYLRUDO LWHPVf WKH\ VKRXOG KDYH EHHQ DGPLQLVWHUHG SULRU WR WKH FRPSOHWLRQ RI WKH OHDGHUVKLS DQG EHKDYLRUDO TXHVWLRQQDLUHV 7KH VWUXFWXUDO TXHVWLRQQDLUHV FRXOG HYHQ KDYH EHHQ FRPSOHWHG RII WKH MRE DQG ZLWK WKH SRVVLELOLW\ RI PRUH WLPH GHYRWHG WR WKHLU FRPSOHWLRQ 7KH FKDQFH RI D ORZHU UHWXUQ UDWH GRHV H[LVW EXW VLQFH WKH FRPSOHWHG TXHVWLRQQDLUHV REVHUYDWLRQ DQG LQWHUYLHZV ZHUH XVHG WKLV LV QRW D FULWLFDO IDFWRU $GPLQLVWHULQJ WKH OHDGHUVKLS DQG EHKDYLRUDO TXHVWLRQQDLUHV WR DV ODUJH D JURXS DV SRVVLEOH KDV LQn KHUHQW DGYDQWDJHV YLVnDYLV WKH UHWXUQ UDWH FRQWURO RYHU WKH VLWXDWLRQ FODULI\LQJ DQ\ SRVVLEOH PLVXQGHUVWDQGLQJ WLPH UHTXLUHG WR FRPSOHWH HWF 7KH SUHYLRXV FRQFOXVLRQV ZHUH WKH PDMRU RQHV DVVRFLDWHG ZLWK WKH PRGHOrV XVH LQ D ILHOG UHVHDUFK SUREOHP $FFHSWDEOH UHVHDUFK VWUDWHJ\ ZDV IROORZHG GXULQJ WKH VWXG\ DQG GRHVQfW UHTXLUH GLVFXVVLRQ RU FRQFOXn VLRQV WR EH UHDFKHG IRU WKH SXUSRVHV RI WKLV VWXG\ 7KH 0HOFKHU 0RGHO LV D FRPSOH[ IUDPHZRUN GHDOLQJ ZLWK D YHU\ FRPSOH[ VLWXDWLRQ RUJDQL]DWLRQDO EHKDYLRU 7KH V\QWKHVLV DQG LQWHJUDWLRQ RI

PAGE 154

WKH UHVHDUFK DFFRPSOLVKHG E\ 0HOFKHU LV D ZRUWKZKLOH DQG QHFHVVDU\ XQGHUWDNLQJ :KHWKHU WKH PRGHO DGHTXDWHO\ UHSUHVHQWV REMHFWLYH UHDOLW\ KDV VWLOO WR EH SURYHG E\ PRUH UHVHDUFK HPSOR\LQJ WKH PRGHO 7KH RYHUn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n SRVHG RI PDQ\ VPDOOHU XQLWV 7KH FKDQJHV WKDW DUH UHTXLUHG VKRXOG EH GLUHFWHG DW WKDW XQLW ZKLFK H[KLELWV WKH G\VIXQFWLRQDO DVSHFWV PDQDJHn PHQW YLHZV DV QHHGLQJ DOWHUDWLRQ DQG QRW HQJDJH LQ DFURVVWKHERDUG FKDQJH SURJUDPV 7KH YDOXH WKHQ LQ WKH XVH RI WKH PRGHO LV WR FRQILQH WKH UHVHDUFK WR WKH QDUURZHVW SRVVLEOH VFRSH 7KHUH LV OLWWOH SUDFWLFDO XVH WR WKH GHFLVLRQ PDNHU IRU LQIRUPDWLRQ DERXW WKH WRWDO RUJDQL]DWLRQ ZLWKRXW WKH DFFRPSDQ\LQJ GDWD DERXW WKH XQLWV DQG VXEXQLWV FRPSULVLQJ WKH RUJDQL]DWLRQ &KDQJH PXVW WDNH SODFH ZKHUH LW GRHV WKH PRVW JRRG DQG ZKHUH LW LV UHTXLUHG $OWKRXJK WKLV H[SORUDWRU\ VWXG\ GLG QRW XWLOL]H VWDWLVWLFDO WHFKn QLTXHV IXUWKHU UHVHDUFK QHHGV WR EH FRQGXFWHG FRQFHUQLQJ WKH EDVLF DVVXPSWLRQV DQG WKH LQLWLDO FRQFHSWXDOL]DWLRQ RI WKH YDULDEOHV RI WKH t PRGHO 7KH PRGHO DVVXPHV WKH SULPDU\ DQG PHGLDWLQJ VWUXFWXUDO DQG OHDGHUVKLS DV WKH LQGHSHQGHQW YDULDEOHV ZLWK WKH EHKDYLRUDO YDULDEOHV

PAGE 155

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

PAGE 156

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f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n VKLS YDULDEOHV DQG VXEYDULDEOHV

PAGE 157

7DEOH SURYLGHV WKH GDWD IRU FODVVLI\LQJ D XQLW DORQJ WKH FRQn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f LV XQUHODWHG LQ WHUPV RI LQSXWRXWSXW RI UHn VRXUFHV (DFK RIILFH RI WKH IRUPDO XQLW REWDLQV LWV UHVRXUFHV DQG GLVn WULEXWHV LWV RXWSXW RXWVLGH WKH RUJDQL]DWLRQ $Q LQWHJUDWHG ZRUN IORZ H[LVWV ZKHUH WKH RXWSXW RI RQH SRVLWLRQ RU XQLW EHFRPHV WKH LQSXW IRU WKH QH[W SRVLWLRQ DQGRU RUJDQL]DWLRQDO XQLW )XUWKHU WKH VHFRQG XQLW FDQQRW SURFHHG XQWLO LW UHFHLYHV WKH LQSXW

PAGE 158

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

PAGE 159

&RQWUDULO\ D SRVLWLRQ PD\ VHUYH D QXPEHU RI RWKHUV LQ WKH JURXS )RU H[DPSOH D VHFUHWDU\ PD\ KDYH D PXOWLSOH UHODWLRQVKLS LQ WKDW VKH ZRUNV IRU PDQ\ SHUVRQV HJ ,QWHUGHSHQGHQFH $PRQJ 3RVLWLRQV 6FDOH 1RQH 0RGHUDWH ([WHQVLYH 'RQI W SURn PDQ\ DUH YLGH LQSXWV GHSHQGHQW IRU RWKHU XSRQ WKH RXWn JURXS PHPEHUV SXW RI D SRVLWLRQ %XIIHUV EHWZHHQ SRVLWLRQV:KHUH LQWHUGHSHQGHQFH H[LVWV DPRQJ SRVLWLRQV WKHUH PD\ EH GLIIHUHQW OHYHOV RI LQYHQWRU\ RU EXIIHUV EHWZHHQ SRVLWLRQV WKDW SHUPLW LQGLYLGXDOV WR FRQWLQXH WR ZRUN HYHQ ZKHQ EUHDNn GRZQV RFFXU RU RWKHUV DUH DEVHQW )RU H[DPSOH WKHUH PD\ EH D EDFNORJ RI ZRUN WKDW QHHGV WR EH GRQH RU RWKHU PHWKRGV RI UHGXFLQJ VKRUWWHUP LQWHUGHSHQGHQFH VXFK DV VZLWFKLQJ WR DQRWKHU W\SH RI ZRUN %XIIHUV %HWZHHQ 3RVLWLRQV 6FDOH ‘ } A P A P P f§ ‘f§ 9 ‘ f§ B ([WHQVLYH PDQ\ ZD\V RI PDNLQJ GDLO\ RU ZHHNO\ DGMXV WPHQWV WR EUHDNGRZQ LQ ZRUN IORZ 0RGHUDWH )HZ OLWWOH WKDW FDQ EH GRQH ZKHQ EUHDNn GRZQ LQ ZRUN IORZ 'HJUHH RI MRE LQWHUFKDQJHDELOLW\:KHUH VSHFLDOL]DWLRQ H[LVWV WKHUH PD\ EH YDU\LQJ GHJUHHV WKDW JURXS PHPEHUV FDQ GR HDFK RWKHUIV

PAGE 160

MREV 2Q WKH RQH KDQG PRVW PHPEHUV PD\ EH WUDLQHG WR GR DQ\ MRE LQ WKH JURXS FRQWUDULO\ PRVW LQGLYLGXDOV PD\ EH DEOH WR RQO\ KDQGOH WKHLU RZQ VSHFLDOL]HG MRE 'HJUHH RI -RE ,QWHUFKDQJHDELOLW\ 6FDOH ([WHQVLYH PRVW KDYH DELOLW\ WR GR HDFK RWKHUIV MRE 0RGHUDWH DW OHDVW KDOI WKH MREV FRXOG EH SHUIRUPHG E\ WZR RU PRUH SHUVRQV /LWWOH IHZ ZRXOG EH DEOH WR GR RWKHUrV MREV :RUN IORZ VXEYDULDEOH LQWHUJURXS 7KH GHJUHH RI LQWHUDFWLRQ EHWZHHQ RU DPRQJ JURXSV LV RSHUDWLRQDOn L]HG E\ DYHUDJLQJ WKH IROORZLQJ IDFWRUV :RUN )ORZ 6FDOH ,QWHUJURXS -RE 6SHFLDOL]DWLRQ ,QWHUGHSHQGHQFH %XIIHUV /LWWOH 1RQH ([WHQVLYH ([WHQVLYH ([WHQVLYH )HZ 7KH FRQWLQXXD DQG GHILQLWLRQV XVHG IRU :RUN IORZ LQWUDJURXS VKRXOG DOVR EH XVHG IRU :RUN IORZ LQWHUJURXS 6SDWLDO3K\VLFDO7HPSRUDO )DFWRUV &RQFHQWUDWHG WR 'LVSHUVHG 7KH VSDWLDOSK\VLFDOWHPSRUDO 637f IDFWRUV PDNH UHIHUHQFH WR WKH H[WHQW WR ZKLFK LQGLYLGXDOV DUH JURXSHG RU VHSDUDWHG E\ GLVWDQFH VSDWLDO RULHQWDWLRQ SK\VLFDO EDUULHUV WLPH RU QRLVH 2Q WKH RQH H[WUHPH LQGLYLGXDOV ZRXOG EH FORVH WRJHWKHU DQG DEOH WR LQWHUDFW RQ D IDFHWRIDFH EDVLV $Q H[DPSOH ZRXOG EH ZKHUH

PAGE 161

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

PAGE 162

6SDWLDO 2ULHQWDWLRQ $PRQJ *URXS 0HPEHUV 'LUHFW f§ PRVW PHPn EHUV DUH ORFDWHG IDFHWRIDFH 3DUWLDO f§ VLGHE\VLGH UHODWLRQVKLS DPRQJ PRVW PHPEHUV ,QGLUHFW EDFNWREDFN UHODWLRQVKLS DPRQJ PRVW PHPEHUV 6HSDUDWLRQ $PRQJ *URXS 0HPEHUV E\ :DOOV 2U 3DUWLWLRQV 1RQH f§ QR ZDOOV RU RWKHU EDUULHUV 3DUWLDO VRPH EDUULHUV EHWZHHQ DERXW KDOI RI WKH JURXS EXW QRQH EHWZHHQ WKH UHVW ([WHQVLYH VFDWWHUHG RQ GLIIHUHQW IORRUV 6HSDUDWLRQ RI *URXS 0HPEHUV E\ 7LPH 6FKHGXOH 1RQH 3DUWLDO EHJLQQLQJ TXLWWLQJ KRXUV OXQFK KRXUV FRIIHH EUHDNV DUH VFKHGXOHG DW VDPH WLPH ([WHQVLYH ZLGH GLIIHUn HQFHV LQ VFKHGXOLQJ RI ZRUNLQJ KRXUV FRIIHH EUHDNV DQG OXQFK KRXUV IRU JURXS PHPEHUV 6HSDUDWLRQ RI *URXS 0HPEHUV E\ 1RLVH /HYHO /RZ 1RLVH 0RGHUDWH +LJK 1RLVH ,QWHUJURXS7KH GHJUHH RI 637 FRQFHQWUDWLRQ EHWZHHQ RU DPRQJ JURXSV LV RSHUDWLRQDOL]HG E\ DYHUDJLQJ WKH IROORZLQJ IDFWRUV

PAGE 163

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f SURGXFLQJ WR RUGHU UDWKHU WKDQ DQWLFLSDWLQJ RUGHUV DQG SURGXFLQJ SDUWO\ IRU LQYHQWRU\f RU LQWHUUXSWLQJ SURGXFWLRQ RUGHUV LQ SURFHVV WR SURYLGH VSHFLDO VHUYLFH WR LPSRUWDQW FXVWRPHUV ,Q RWKHU FDVHV VKRUW SURGXFWLRQ UXQV PD\ EH WKH FRQVHTXHQFH RI WKH YHU\ QDWXUH RI WKH LQGXVWU\ )RU DQ

PAGE 164

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n GLFWDEOH RFFXUUHQFHV RI WHFKQLFDO SUREOHPV DQG RWKHU VLPLODU HYHQWV 7KH QDWXUH DQG FKDQJHV LQ WHFKQRORJ\ PD\ DIIHFW ZRUN GHPDQGV 7KH ZD\ LQ ZKLFK WKH SURGXFW LV SURGXFHG PD\ FKDQJH DV LQ VXFK LQVWDQFHV ZKHUH QHZ W\SHV RI PDFKLQHU\ PDWHULDOV RU GLIIHUHQW SURFHVVHV DUH LQWURGXFHG ,Q FRQWUDVW WKH WHFKQRORJ\ PD\ EH ZHOO GHYHORSHG LQ ZKLFK FDVH OLWWOH FKDQJH LV UHTXLUHG WKURXJK WLPH :RUN 'HPDQGV &RQWLQXXP 6WDEOH 8QVWDEOH :RUN GHPDQGV VXEYDULDEOHV 7KH YDULDELOLW\ RI ZRUN GHPDQGV LV RSHUDWLRQDOL]HG E\ VHOHFWLQJ RQH RI WKH IROORZLQJ 6WDELOLW\ RI :RUN 'HPDQGV 'XULQJ (DFK +RXU +LJK GHPDQGV DUH XVXDOO\ VWDEOH IURP KRXUWRKRXU KRXUWRKRXU 0HGLXP GHPDQGV DUH VWDEOH DERXW KDOI WKH WLPH /RZ XQVWDEOH DQG IOXFWXDWLQJ GHPDQGV IURP

PAGE 165

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f QHFHVVDU\ WR VROYH SUREOHPV RU PDNH HIIHFWLYH GHFLVLRQV ,I WKH FRQVHn TXHQFH RI SDUWLFXODU DFWLRQV LV SUHGLFWDEOH WKH JHQHUDWLRQ DQG VHOHFWLRQ DPRQJ DOWHUQDWLYHV WKH VHDUFK SURFHGXUHf VKRXOG EH URXWLQH DQG WULYLDO

PAGE 166

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nV H[SHULHQFH DQG EDFNn JURXQG WULDO DQG HUURU RU MXGJPHQW 7KH WUHDWPHQW RI PHQWDO SDWLHQWV WUDQVSODQWV RI YLWDO RUJDQV IURP RQH ERG\ WR DQRWKHU GHYHORSLQJ D QHZ IRUP RI PDWHULDO VRPH IRUPV RI WHFKQLFDO SUREOHPV DQG WKH OLNH DUH WKH W\SHV RI SUREOHPV WKDW UHTXLUH QHZ DSSURDFKHV FUHDWLYLW\ DQG D FHUWDLQ DPRXQW RI UDQGRP VHDUFK IRU D VROXWLRQ +HXULVWLFV &RQWLQXXP 3UHGLFWDEOH 8QSUHGLFWDEOH +HXULVWLFV VXEYDULDEOHV 7KH YDULDEOH LV RSHUDWLRQDOL]HG E\ DYHUDJLQJ WKH DQVZHUV WR WZR TXHVWLRQV f 7KH ILUVW PHDVXUHV WKH NQRZOHGJH HDFK LQGLYLGXDO KDV LQ FDUU\LQJ RXW DVVLJQHG WDVNV DQG SUREOHP VROYLQJ f 7KH VHFRQG PHDVXUHV WKH UHVRXUFHV RI RWKHUV RI ZKLFK KH LV DZDUH DQG FDQ GUDZ XSRQ IRU KHOS 3UHGLFWDEOLW\ RI DFWLRQV TXHVWLRQ,Q VRPH MREV WKLQJV DUH IDLUO\ SUHGLFWDEOHLI \RX GR VRPHWKLQJ \RX NQRZ ZKDW ZLOO KDSSHQ ,Q RWKHUV \RX RIWHQ DUH QRW VXUH ZKHWKHU VRPHWKLQJ ZLOO ZRUN RU QRW :KDW SHU FHQW RI WKH WLPH ZRXOG \RX VD\ WKDW \RX DUH VXUH ZKHWKHU VRPHWKLQJ \RX GR ZLOO ZRUN"

PAGE 167

$OPRVW $OZD\V 8VXDOO\ 2IWHQ 6RPHWLPHV 6HOGRP } } $YDLODELOLW\ RI KHOS IURP RWKHUV TXHVWLRQ,Q VRPH MREV WKLQJV DUH IDLUO\ SUHGLFWDEOHLI \RX GR VRPHWKLQJ \RX NQRZ ZKDW ZLOO KDSSHQ ,Q RWKHUV \RX RIWHQ DUH QRW VXUH ZKHWKHU VRPHWKLQJ ZLOO ZRUN RU QRW :KDW SHU FHQW RI WKH WLPH ZRXOG \RX VD\ WKDW \RX DUH VXUH ZKHWKHU VRPHn WKLQJ \RX GR ZLOO ZRUN" $OPRVW $OZD\V 8VXDOO\ 2IWHQ 6RPH WLPHV 6HOGRP L R R $YDLODELOLW\ RI KHOS IURP RWKHUV TXHVWLRQ6RPHWLPHV HYHQ WKRXJK \RX GRQnW NQRZ KRZ WR KDQGOH D SUREOHP \RX FDQ JR WR VRPHRQH HOVH LQ \RXU JURXS RU HOVHZKHUH IRU UHOLDEOH KHOS ,Q RWKHU FDVHV QRERG\ HOVH LV OLNHO\ WR EH DEOH WR SURYLGH DQ\ UHOLDEOH KHOS :KDW SHU FHQW RI WKH WLPH FDQ \RX JR WR RWKHUV IRU UHOLDEOH KHOS ZKHQ \RX DUH DW D ORVV RQ KRZ WR VROYH D SUREOHP" $OPRVW $OZD\V 8VXDOO\ 2IWHQ 6RPHWLPHV 6HOGRP } } 0HGLDWLQJ 6WUXFWXUDO 9DULDEOHV )RUPDO $XWKRULW\ 5HODWLRQVKLSV 'LIIXVH WR 6SHFLILF $XWKRULW\ LV GHILQHG DV WKH IRUPDO MXULVGLFWLRQ RYHU GHFLVLRQV 7KH ULJKW WR PDNH ILQDO GHFLVLRQV LV UHIHUUHG WR DV OLQH DXWKRULW\ 7KH ULJKW WR DGYLVH RWKHUV RQ GHFLVLRQV LV GHILQHG DV VWDII DXWKRULW\

PAGE 168

)XQFWLRQDO OLQH DXWKRULW\ LV WKH ULJKW WR PDNH ILQDO GHFLVLRQV LQ D VSHFLDOL]HG DUHD ,I D VSHFLDOLVW JURXS VXFK DV WKH SHUVRQQHO GHSDUWn PHQW LV JLYHQ WKH ILQDO DXWKRULW\ WR KLUH QHZ HPSOR\HHV LW KDV IXQFn WLRQDO OLQH DXWKRULW\ RYHU KLULQJ ,I WKH SHUVRQQHO GHSDUWPHQW KDV RQO\ DGYLVRU\ DXWKRULW\ RYHU KLULQJ LW KDV IXQFWLRQDO VWDII DXWKRULW\ LQ WKH DUHD 7KH IRUPDO DXWKRULW\ UHODWLRQVKLSV PD\ EH OHIW ODUJHO\ XQVSHFLILHG DQG GLIIXVH RU PD\ EH GHILQHG LQ GHWDLO DQG EH TXLWH VSHFLILF 7KHVH UHODWLRQVKLSV H[LVW ERWK ODWHUDOO\ DQG YHUWLFDOO\ 7KH WKUHH PDMRU HOHPHQWV WKDW PDNH XS WKH IRUPDO DXWKRULW\ UHODWLRQV DUH f /HYHOV IHZ WR PDQ\ f 'HOHJDWLRQ GHFHQWUDOL]DWLRQ WR FHQWUDOL]DWLRQ DQG f 'HSDUWPHQWDWLRQ DXWRQRPRXV WR LQWHUGHSHQGHQW (DFK RI WKHVH GLPHQVLRQV LV GHILQHG LQ WHUPV RI DXWKRULW\ )RUPDO $XWKRULW\ &RQWLQXXP 'LIIXVH 6SHFLILF IRUPDO DXWKRULW\ UHODWLRQVKLSV VXEYDULDEOHV 7KH GHJUHH RI IRUPDOL]DWLRQ RI DXWKRULW\ UHODWLRQVKLSV LV RSHUDn WLRQDOL]HG E\ DYHUDJLQJ WKH IROORZLQJ IDFWRUV /HYHOV IHZ WR PDQ\2UJDQL]DWLRQ OHYHOV DUH WKH KLHUDUFKLDO GLIIHUHQWLDWLRQ DPRQJ RIILFHV 2UJDQL]DWLRQDO OHYHOV DQG WKH UHODWLYH OHYHO RQH SRVLWLRQ RFFXSLHV YLVDYLV DQRWKHUf DUH GHILQHG E\ WKH DVVLJQn PHQW WR DQ RIILFH OLQH DXWKRULW\ RYHU RWKHU RIILFHV 7KLV GHWHUPLQHV WKH VXSHULRUVXERUGLQDWH UHODWLRQVKLS 7R GHWHUPLQH WKH DEVROXWH QXPEHU RI OHYHOV LQ WKH XQLW XQGHU FRQ VLGHUDWLRQ FRXQW WKH QXPEHU RI OHYHOV LQ WKH GLUHFW FKDLQ RI FRPPDQG

PAGE 169

WR WKH WRS DGPLQLVWUDWLYH RIILFHU &RXQW WKH VXSHUYLVRU DW WKH ERWWRP RI WKH RUJDQL]DWLRQ DV QXPEHU f 7ZR VXEWOH IDFWRUV WKDW KDYH D EHDULQJ RQ WKH UDWLQJ RI OHYHOV LQ WKH XQLW XQGHU FRQVLGHUDWLRQ DUH Df VWDWXV V\PEROV GHVLJQDWHG DV SDUW RI WKH RIILFH VXFK DV WLWOH FDUSHWV SULYDWH VHFUHWDU\ QDWXUH RI RIILFH IXUQLWXUH VDODU\ HWFf DQG Ef WKH RIILFH WR ZKLFK RQH UHSRUWV ,Q D ZHOOGHVLJQHG RUJDQL]Dn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n WLRQ LH WKH GHJUHH WKDW WKH RUJDQL]DWLRQ LV GHFHQWUDOL]HG RU FHQWUDOL]HG $ FRPSOHWHO\ GHFHQWUDOL]HG VWUXFWXUH LV RQH LQ ZKLFK RSHUDWLQJ HPSOR\HHV KDYH WKH ULJKW WR PDNH DOO WKH GHFLVLRQV LH FRPSOHWH GHOHJDWLRQ RI DXWKRULW\ $ FRPSOHWHO\ FHQWUDOL]HG RUJDQL]Dn WLRQ LV ZKHUH WKH WRS H[HFXWLYH KDV WKH ULJKW WR PDNH DOO WKH GHFLVLRQV LH UHWDLQV DOO DXWKRULW\ $Q RQJRLQJ RUJDQL]DWLRQ ZLOO KDYH VRPH EDODQFH EHWZHHQ WKRVH H[WUHPHV

PAGE 170

'HOHJDWLRQ 6FDOH 'HFHQWUDOL]DWLRQ &HQWUDOL]DWLRQ $ FRPSOHWHO\ GHFHQWUDOL]HG RUJDQL]DWLRQ ZRXOG EH DFKLHYHG RQO\ LI DW HDFK OHYHO LQ WKH RUJDQL]DWLRQ WKHUH ZHUH FRPSOHWH GHOHJDWLRQ GRZQ WR WKH QH[W OHYHO ,Q SUDFWLFH WKLV GRHVQnW RFFXU ,QVWHDG HDFK OHYHO RI VXSHUYLVLRQ SDUWLDOO\ UHVWULFWV WKH GHJUHH RI GLVFUHWLRQ VXERUGLQDWHV PD\ H[HUFLVH 7KXV HPSOR\HH IUHHGRP GLPLQLVKHV RU LV UHGXFHG DV RQH PRYHV IURP WKH KLJKHVW WR WKH ORZHVW OHYHOV RI RUJDQL]DWLRQ 7KH SULQFLSDO PHDQV RI UHVHUYLQJ GHFLVLRQV IRU WRS PDQDJHPHQW DQG SURYLGLQJ SDUDPHWHUV RQ WKRVH DW HDFK OHYHO LV WKURXJK VWDWHPHQW RI SROLFLHV LQFOXGLQJ MRE GHVFULSWLRQVf SURFHGXUHV DQG UXOHV (DFK OHYHO RI PDQDJHPHQW PD\ DGG IXUWKHU UHVWULFWLRQ ,Q D EDQN IRU LQVWDQFH WKH SROLF\ PD\ EH WKDW ORDQV PD\ EH DSSURYHG E\ WKH %RDUG RI 'LUHFWRUV 7KLV GHILQHV WKH GHJUHH RI FHQWUDOL]DWLRQ DQG GHFHQWUDOLn ]DWLRQ LQ UHVSHFW WR ORDQV 'HJUHH RI GHOHJDWLRQ LV PHDVXUHG DW HDFK OHYHO LQ WKH RUJDQL]DWLRQ ,W LV PHDVXUHG E\ WZR SULQFLSDO IDFWRUV Df WKH SHUFHQWDJH RI GHFLVLRQV SHUPLWWHG WKDW GR QRW UHTXLUH FRQVXOWDWLRQ ZLWK LPPHGLDWH RU KLJKHU OHYHO VXSHUYLVRUV 'HFHQWUDOL]HG &HQWUDOL]HG R b b b b Ef 7KH GHJUHH RI GLVFUHWLRQ WKDW WKH SROLFLHV SURFHGXUHV DQG UXOHV SHUPLW LQ PDNLQJ GHFLVLRQV WKDW LV WKH H[WHQW WR ZKLFK IRUPDO SDUDPHWHUV RI SROLFLHV SURFHGXUHV DQG UXOHV

PAGE 171

EURDGO\ UHVWULFW GHFLVLRQV RU LQ FRQWUDVW WKH GHJUHH WR ZKLFK WKH\ VKDUSO\ UHVWULFW GHFLVLRQV WR URXWLQH PDWWHUV DQG LPSOHPHQWDWLRQf 'HFHQWUDOL]DWLRQ &HQWUDOL]DWLRQ ([WHQVLYH 0RGHUDWH 5HVWULFWHG ([WHQVLYH GLVFUHWLRQf UHIHUV WR WKRVH LQGLYLGXDOV ZKR KDYH EURDG GLVFUHWLRQ LQ PDNLQJ GHFLVLRQV WKHUH LV JHQHUDO IOH[LELOLW\ WR DGMXVW WR ORFDO FRQGLWLRQV VSHFLDO VLWXDWLRQV DQG LPSOHPHQW GLIIHUHQW LGHDV LQ SHUIRUPLQJ WKH MRE DVVLJQPHQW KLJKHU OHYHO VXSHUYLVLRQ EURDGO\ UHOLHV XSRQ MXGJPHQW JHQHUDO FRPSHWHQFH DQG DGKHUHQFH WR SURIHVVLRQDO VWDQGDUGV WR RULHQW WKH LQGLYLGXDO LQ GRLQJ KLV MRE SURSHUO\ 0RGHUDWH GLVFUHWLRQf UHIHUV WR WKH SROLF\ DQG SURFHGXUH VWDWHPHQWV DQG UXOHV FRYHULQJ PRVW RI WKH LPSRUWDQW GHFLVLRQV LQ WKH MRE WKHUH LV KRZHYHU VRPH GLVFUHWLRQ WR DGMXVW WR ORFDO FRQGLWLRQV VSHFLDO VLWXDWLRQV DQG RSSRUWXQLW\ WR LPSOHPHQW QHZ LGHDV LQ SHUIRUPLQJ WKH MRE DVVLJQPHQW WKHUH LV VRPH UHOLDQFH XSRQ WKH MXGJPHQW JHQHUDO FRPSHWHQFH DQG DGKHUHQFH WR SURIHVVLRQDO VWDQGDUGV WR RULHQW WKH LQGLn YLGXDO LQ GRLQJ KLV MRE SURSHUO\ 5HVWULFWHG GLVFUHWLRQf PHDQV WKH SROLFLHV SURFHGXUHV DQG UXOHV WKDW OLPLW GLVFUHWLRQ LQ GHFLVLRQPDNLQJ WR URXWLQH XQLPSRUWDQW GHWDLOV WKHUH LV QR OHHZD\ IRU DGDSWLRQ WR ORFDO FRQGLWLRQV VSHFLDO VLWXDWLRQV RU GLIIHUHQW LGHDV LQ SHUIRUPLQJ WKH MRE DVVLJQPHQW WKHUH LV SUDFWLFDOO\ QR UHOLDQFH XSRQ WKH LQGLYLGXDOV MXGJPHQW JHQHUDO FRPSHWHQFH DQG DGKHUHQFH WR SURIHVVLRQDO VWDQGDUGV WR RULHQW WKH LQGLYLGXDO LQ GRLQJ KLV MRE SURSHUO\ WPHQWDWLRQ DXWRQRPRXV WR LQWHUGHSHQGHQW'HSDUWPHQWDWLRQ LV GHILQHG DV WKH IRUPDO DXWKRULW\ UHODWLRQVKLSV DPRQJ IRUPDO JURXSV 'HSDUWPHQWDWLRQ PD\ UDQJH IURP FRPSOHWHO\ DXWRQRPRXVZKHUH QR GHSDUWPHQW

PAGE 172

KDV DXWKRULW\ RYHU DQ\ RWKHU GHSDUWPHQWWR FRPSOHWHO\ LQWHUGHSHQGHQW ZKHUH HDFK GHSDUWPHQW KDV SDUWLDO DXWKRULW\ RYHU HDFK RI WKH RWKHU GHSDUWPHQWV 'HSDUWPHQWDWLRQ 6FDOH $XWRQRPRXV ,QWHUGHSHQGHQW :KHUH D GHSDUWPHQW QHLWKHU KDV DXWKRULW\ RYHU RWKHU GHSDUWPHQWV QRU RWKHU GHSDUWPHQWV KDYH DXWKRULW\ RYHU LW WKLV LV GHILQHG DV DXWRQRPRXV ,Q LQGXVWULDO RUJDQL]DWLRQV FULWHULD WKDW OHQG WKHPVHOYHV WR HVWDEOLVKLQJ DXWRQRPRXV XQLWV RU LQIOXHQFH PRYHPHQW WRZDUG WKH DXWRQRPRXV HQG RI WKH FRQWLQXXPf DUH FXVWRPHU SURGXFW DQG JHRJUDSKLF GLYLVLRQ +RZHYHU IXQFWLRQDO GHSDUWPHQWV PD\ DOVR EH DXWRQRPRXV 7KLV ZRXOG RFFXU IRU H[DPSOH ZKHQ D UHVHDUFK GHSDUWPHQW LV DVVLJQHG UHVSRQVLELOLWLHV WR GHYHORS D SURGXFW EXW LV QRW JLYHQ WKH DXWKRULW\ RYHU RWKHU JURXSV ZKRVH VHUYLFHV DUH UHTXLUHG WR FDUU\ RXW WKH UHVHDUFK IXQFWLRQ LH FKHPLVWU\ ODEV SHUVRQQHO GHSDUWPHQW SXUFKDVLQJ HWFf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
PAGE 173

TXDOLW\ TXDQWLW\ FRVWf HYHQ WKRXJK ILQDQFHf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f ,Q WKH JURXSfV DUHD RI VSHFLDOW\UHVSRQVLELOLW\ GRHV LW KDYH WKH DXWKRULW\ WR PDNH GHFLVLRQV IRU RWKHU GHSDUWPHQWV HJ WR ZKDW H[WHQW PXVW RWKHU GHSDUWPHQWV REWDLQ LWV IRUPDO DSSURYDO RQ GHFLVLRQV" $XWRQRPRXV ,QWHUGHSHQGHQW /LW WLH FDQ RQO\ DGYLVH 0RGHUDWH ([WHQVLYH FDQ PDNH VRPH KDYH OLQH LPSRUWDQW GH DXWKRULW\ WR FLVLRQV EXW FDQ PDNH PRVW RQO\ DGYLVH RQ GHFLVLRQV PRVW LPSRUWDQW GHFLVLRQV Ef ,Q WKHLU DUHD RI VSHFLDOW\UHVSRQVLELOLW\ GR RWKHU GHSDUWPHQWV KDYH WKH DXWKRULW\ WR PDNH GHFLVLRQV WKDW DIIHFW WKH JURXS HJ SHUVRQQHO PD\ KDYH ILQDO DXWKRULW\ RYHU ZKFP WKH XQLW KLUHV ILUHV RU SURPRWHV HQJLQHHULQJ PD\ GHWHUPLQH TXDOLW\ VSHFLIL FDWLRQV HWF $XWRQRPRXV ,QWHUGHSHQGHQW /LWWOH FDQ RQO\ DGYLVH 0RGHUDWH ([WHQVLYH FDQ PDNH VRPH KDYH /LQH LPSRUWDQW DXWKRULW\ WR GHFLVLRQV EXW PDNH PRVW FDQ RQO\ DGYLVH GHFLVLRQV RQ PRVW LPSRUn WDQW GHFLVLRQV

PAGE 174

&RQWURO 6\VWHP ,QVWLWXWLRQDO WR ,QGLYLGXDO 7KH FRQWURO V\VWHP LV GHILQHG DV WKH IRUPDO V\VWHP IRU HYDOXDWLQJ SHUIRUPDQFH LQFOXGLQJ f VWDQGDUGV WKDW DUH HVWDEOLVKHG f IRUPDO PHDVXULQJ LQVWUXPHQWV WR EH XVHG WR GHWHUPLQH LI WKHVH VWDQGDUGV KDYH EHHQ DFKLHYHG DQG f WKH IRUPDO V\VWHP IRU DOORFDWLQJ UHZDUGVSHQDOWLHV IRU YDULRXV OHYHOV RI DFKLHYHPHQW 7KH FRQWURO V\VWHP ZRXOG UDQJH DORQJ D FRQWLQXXP IURP LQVWLWXWLRQDO WR LQGLYLGXDO V\VWHP &RQWURO 6\VWHP &RQWLQXXP ,QVWLWXWLRQDO ,QGLYLGXDO 7KH LQVWLWXWLRQDO V\VWHP H[LVWV ZKHQ WKHUH DUH QR IRUPDO VSHFLILFDn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n WLRQDOL]HG E\ DYHUDJLQJ WKH IROORZLQJ IDFWRUV 3HUIRUPDQFH VWDQGDUGV6WDQGDUGV VXFK DV WLPH FRVW TXDQWLW\ TXDOLW\ RU RWKHU DVSHFWV RI SHUIRUPDQFH H[SHFWHG RI HDFK LQGLYLGXDO RU JURXS PD\ EH VSHFLILHG LQ YDU\LQJ GHJUHHV 7KHVH PD\ UDQJH IURP YDJXH DQG XQGHILQHG VWDWHPHQWV RQ ZKDW LV H[SHFWHG WR FOHDU SUHFLVH ZHOOGHILQHG VWDWHPHQWV RI H[SHFWHG SHUIRUPDQFH VWDQGDUGV

PAGE 175

2Q WKH RQH KDQG QR VWDQGDUGV DUH H[SOLFLWO\ GHILQHG E\ PDQDJHPHQW HLWKHU LQ IRUPDO SROLF\ VWDWHPHQWV RU RWKHUZLVHEHIRUH WKH DFWLYLWLHV RU DVVLJQHG GXWLHV DUH FDUULHG RXW 7KHUH PD\ EH DQG PRVW OLNHO\ DUH LQIRUPDO QRUPV WKDW DUH VHW E\ WKH LQGLYLGXDOV RU WKH JURXSV 7KHVH KRZHYHU DUH QRW LQFOXGHG DV SDUW RI WKH IRUPDO VWDQGDUGVf ,Q WKH RWKHU H[WUHPH WLPH FRVW TXDOLW\ TXDQWLW\ RU RWKHU HQGV ZRXOG EH VSHFLILn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n URRP VHWWLQJ IRU LQVWDQFH DUH IRUPDO PHDVXULQJ PHWKRGV XVHG WR DVVHVV OHYHOV RI LQGLYLGXDO SHUIRUPDQFH 7KLV LV RSHUDWLRQDOL]HG LQ WKH IROORZLQJ

PAGE 176

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n IHUHQWLDWHG EDVLV WR HYHU\RQH E\ YLUWXH RI WKHLU PHPEHUVKLS LQ WKH RUJDQL]DWLRQ ([DPSOHV RI WKHVH DUH VXFK IULQJH EHQHILWV DV SHQVLRQV KRVSLWDO DQG LQVXUDQFH SODQV UHFUHDWLRQDO IDFLOLWLHV FRVWRIOLYLQJ LQFUHDVHV DFURVV WKH ERDUG XSJUDGLQJ SURILW VKDULQJ SODQV XQGLIIHUn HQWLDWHG KRXUO\ UDWHV RU VDODULHV ,Q VRPH FDVHV UHZDUGV PD\ EH GLIn IHUHQWLDWHG EXW XQUHODWHG WR SHUIRUPDQFH OHYHOV DV ZKHQ SURPRWLRQV VDODU\ OHYHO UDLVHV HWF DUH PDGH RQ WKH EDVLV RI IDPLO\ WLHV IULHQGn VKLS FROOHJH WLHV FRPPRQ UHOLJLRQ DQG WKH OLNH 2Q WKH RWKHU KDQG LQGLYLGXDO SHUIRUPDQFH LV UHZDUGHG 7\SLFDO H[DPSOHV DUH SLHFHUDWH V\VWHPV SURPRWLRQ IRU RXWVWDQGLQJ SHUIRUPDQFH RU VSHFLDO UHFRJQLWLRQ JLYHQ EHFDXVH RI DQ H[FHSWLRQDO FRQWULEXWLRQ

PAGE 177

7KLV YDULDEOH LV RSHUDWLRQDOL]HG E\ DYHUDJLQJ WKH IROORZLQJ WZR IDFWRUV 5HZDUGV VDODU\ LQFUHDVHV SURPRWLRQV VSHFLDO UHFRJQLWLRQ DQG SULYLOHJHVf PD\ EH JUDQWHG RQ D EDVLV WKDW KDV OLWWOH UHODWLRQ RU D GLUHFW UHODWLRQ WR SHUIRUPDQFH OHYHOV 5HZDUG 6\VWHP 6FDOH /LWWOH 3DUWLDO 'LUHFW "!/LWWOH UHODWLRQVKLSf UHIHUV WR WKH IDFW WKDW WKHUH VHHPV WR EH OLWWOH UHODWLRQVKLS EHWZHHQ KRZ JRRG D MRE RQH GRHV DQG WKH DPRXQW RI UDLVHV WKDW DUH UHFHLYHG SURPRWLRQV JLYHQ RU VSHFLDO UHFRJQLWLRQ JUDQWHG 3DUWLDO UHODWLRQVKLSf LV D PL[HG SLFWXUH LI RQH GRHV DQ RXWVWDQGn LQJ MRE KH XVXDOO\ ZLOO UHFHLYH UHFRJQLWLRQ UDLVHV DQG D FKDQFH IRU SURPRWLRQ RWKHUV KRZHYHU PD\ GR D UHODWLYHO\ SRRU MRE DQG VWLOO EH UHZDUGHG RQ WKH EDVLV RI VHQLRULW\ IULHQGVKLS RU VSHFLDO WLHV ZLWK NH\ SHRSOH 'LUHFW UHODWLRQVKLSf LQIHUV WKDW LI RQH GRHV D JRRG MRE KH QHDUO\ DOZD\V UHFHLYHV UHFRJQLWLRQ UHZDUGV DQG FKDQFH IRU SURPRWLRQV LI KH GRHV D SRRU MRE KH QHDUO\ DOZD\V ZLOO QRW 6HQLRULW\ RU VSHFLDO FRQQHFn WLRQV DUH LPSRUWDQW RQO\ ZKHQ GHFLVLRQV FRXOG JR HLWKHU ZD\ 3HQDOWLHV WDNLQJ DZD\ RI VSHFLDO SULYLOHJHV VDODU\ UHGXFWLRQV GHPRWLRQV DQG ILULQJf PD\ EH DSSOLHG RQ D EDVLV WKDW KDV OLWWOH UHODWLRQ RU D GLUHFW UHODWLRQ WR SHUIRUPDQFH OHYHOV 3HQDOW\ 6\VWHP 6FDOH a /LWWOH 3DUWLDO 'LUHFW

PAGE 178

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f WKH GLUHFWQHVV RI FRPPXQLFDWLRQ OLQNV DPRQJ SHRSOH f WKH GHQVLW\ RU QXPEHU RI FKDQQHOV WKDW PD\ EH XVHG WR WUDQVPLW GDWD IURP RQH SHUVRQ WR DQRWKHU f SURJUDPV IRU WUDQVn PLWWLQJ GDWD IURP SHUVRQ WR SHUVRQ DQG f WKH GDWD VWRUDJHUHWULHYDO V\VWHP ,Q RSHUDWLRQDOL]LQJ WKH YDULDEOH D GLVWLQFWLRQ LV PDGH EHWZHHQ LQWUDJURXS LQWHUJURXS DQG YHUWLFDO LQIRUPDWLRQ V\VWHPV ,QWUDJURXS FRPPXQLFDWLRQ FHQWHU OLQNDJH2QH LPSRUWDQW GLPHQVLRQ RI WKH UHODWLRQV DPRQJ SHRSOH LV WKH GLUHFWQHVV RI FRPPXQLFDWLRQ OLQNV 7KLV PD\ YDU\ IURP ZKHUH WKHUH LV IRUPDO SURYLVLRQ IRU GLUHFW OLQNDJH DPRQJ DOO SHRSOH WR ZKHUH OLQNDJH DPRQJ SHRSOH LV WKURXJK WZR RU PRUH LQWHUPHGLDULHV LH LQGLUHFW OLQNDJHf

PAGE 179

'LUHFW &RPSOHWHf 3DUWLDO :KHHOf ,QGLUHFW +XEf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fV SRVLWLRQ SRVLWLRQV WKURXJK RQH RU PRUH f f LQWHUPHGLDULHV ,QWUDJURXS FKDQQHO GHQVLW\7KHUH PD\ EH IHZ DXWKRUL]HG ZD\V RI FRPPXQLFDWLQJ ZLWK DQ\ RWKHU LQGLYLGXDO ZLWKLQ WKH JURXS DW WKH VDPH b KLJKHU RU ORZHU OHYHO LQ WKH RUJDQL]DWLRQ )RU H[DPSOH LW PD\ EH QHFHVVDU\ WR UHO\ XSRQ DQ\ QXPEHU RI DXWKRUL]HG ZD\V LQFOXGLQJ PHHWLQJV IDFHWRIDFH LQ LQIRUPDO PHHWLQJV EXOOHWLQ ERDUGV RU IRUPDO PHPRV RU QRWHV

PAGE 180

,QWUDJURXS &KDQQHO 'HQVLW\ 6FDOH 6LQJOH RQO\ IRUPDO FKDQQHOV DUH DXWKRUL]HG 0XOWLSOH XVH DQ\ PHDQV WKDW LV XVHIXO ,QWUDJURXS WUDQVPLVVLRQ WLPH7KHUH PD\ EH SURJUDPV WR WUDQVPLW LQn IRUPDWLRQ RQ D UHDO WLPH EDVLV RU D GHOD\HG EDVLV 5HDO WLPH V\VWHPV WUDQVPLW WKH GDWD DV WKH HYHQW RFFXUV 'HOD\HG WLPH V\VWHPV GHDO ZLWK EDWFKHG RU DFFXPXODWHG GDWD 7KH GLIIHUHQW ZD\V RI GHVLJQLQJ DQ LQIRUPDWLRQ V\VWHP LQ UHVSHFW WR LQYHQWRULHV LOOXVWUDWH WKH GHOD\HG DQG UHDO WLPH V\VWHPV ,I LQYHQn WRULHV DUH GHWHUPLQHG DW WKH HQG RI WKH \HDU WKLV ZRXOG EH DQ H[WHQGHG RU GHOD\HG WLPH V\VWHP :KHUH UHSRUWV DUH FRPSRVHG TXDUWHUO\ WKLV ZRXOG EH VRPHZKDW IXUWKHU WRZDUGV WKH UHDO WLPH V\VWHP :KHUH UHSRUWV DUH SUHn SDUHG PRQWKO\ WKLV ZRXOG PRYH WKH V\VWHP FORVHU WR UHDO WLPH ZHHNO\ UHSRUWV HYHQ PRUH VR DQG ZKHQ SUHSDUHG GDLO\ PXFK FORVHU WR UHDO WLPH \HW :KHQ LQYHQWRU\ FKDQJHV DUH DGGHG RU GHGXFWHG IURP LQYHQWRU\ EDODQFH LPPHGLDWHO\ DQG WKH LQIRUPDWLRQ WUDQVPLWWHG WR WKRVH FRQFHUQHG WKHQ D UHDO WLPH V\VWHP H[LVWV 7KLV LV GHWHUPLQHG DV IROORZV ,QGLYLGXDOV PD\ EH DXWKRUL]HG WR WUDQVPLW LQIRUPDWLRQ WR RWKHU SRVLWLRQV DV LW RFFXUV UHDO WLPHf LQ FRQWUDVW WKH\ PD\ WUDQVPLW WKH GDWD SHULRGLFDOO\ LH EDWFKLQJ RI GDWD DQG WUDQVPLWWLQJ LW RQ GHOD\HG WLPH EDVLV 5HDO WLPH ,QWUDJURXS 7UDQVPLVVLRQ 7LPH 6FDOH 'HOD\HG WLPH

PAGE 181

,QWUDJURXS VWRUDJHUHWULHYDO V\VWHP7KH VWRUDJHUHWULHYDO V\VWHP UHIHUV WR WKH IRUPDO V\VWHP IRU VWRULQJ GDWD DQG PDNLQJ LW DYDLODEOH ZKHQ QHHGHG 7KH HOHPHQWV RI WKH V\VWHP DUH WKH ILOHV RU RWKHU PHWKRGV IRU VWRULQJ GDWD WKH UHGXQGDQF\ RI WKH V\VWHP DW GLIIHUHQW OHYHOV VHFWLRQ GHSDUWPHQW SODQW KHDGTXDUWHUVf DQG DW GLIIHUHQW XQLWV LQ WKH RUJDQL]DWLRQ DXWKRUL]HG DFFHVV WR WKH LQIRUPDWLRQ DW WKHVH SRLQWV DQG WKH SURJUDP IRU RUGHULQJ DQG FRGLQJ WKH GDWD WR SHUPLW LWV ORFDWLRQ DQG UHWULHYDO Df )LOHV 7KH FDSDFLW\ IRU VWRULQJ GDWD PD\ EH OLPLWHG SULQFLSDOO\ WR PHPRULHV RI LQGLYLGXDOV LQ WKH RUJDQL]DWLRQ &RQWUDULO\ WKHVH PD\ EH VXSSOHPHQWHG E\ H[WHQVLYH ILOHV WKDW SK\VLFDOO\ SHUPLW VWRUDJH RI ODUJH DPRXQWV RI GDWD 7KHVH ILOHV PD\ H[LVW DW GLIIHUHQW JURXSV DQGRU DW D FHQWUDO SRLQW LQ WKH RUJDQL]Dn WLRQ 2SHUDWLRQDO PHDVXUHV DUH GLUHFWHG DW ERWK SRLQWV $W WKH JURXS OHYHO WKHUH PD\ EH OLPLWHG IDFLOLWLHV IRU VWRULQJ LQIRUPDWLRQ EH\RQG WKH PHPRULHV RI LQGLYLGXDOV FRQWUDULO\ WKHUH PD\ EH IDFLOLWLHV IRU H[WHQVLYH VWRUDJH VR WKDW SRWHQWLDOO\ XVHIXO GDWD FXUUHQW WUDQVDFWLRQVPLVFHOODQHRXV LQSXWKLVWRULFDO GDWDf FDQ EH V\VWHPDWLFDOO\ VWRUHG )LOHV DW WKH *URXS /HYHO /LPLWHG SULPDULO\ OLPLWHG WR PHPRULHV ([WHQVLYH URRP WR VWRUH DOO SRWHQWLDOO\ XVHIXO GDWD Ef 2UGHULQJFODVVLI\LQJ SURJUDPV 7KH DELOLW\ WR UHWULHYH DQG XVH WKH GDWD ZRXOG EH DIIHFWHG E\ WKH SURJUDP IRU RUGHULQJ DQG FODVVLI\LQJ WKH GDWD 7KLV PD\ UDQJH IURP DQ XQRUGHUHG ILOH

PAGE 182

RI GDWD WR RQH WKDW LV V\VWHPDWLFDOO\ VRUWHG DQG FODVVLILHG 7KHUH PD\ EH GLIIHUHQW SURJUDPV DW WKH ORFDO OHYHO WKDW H[LVW IRU FHQWUDO ILOHV 7KLV LV RSHUDWLRQDOL]HG DV IROORZV 7KH GDWD LQ WKH ORFDO ILOHV PD\ EH ODUJHO\ XQRUGHUHG DQG XQn FODVVLILHG LH SODFHG XQVRUWHG LQ WKH ILOHV DV LW FRPHV LQ &RQWUDULO\ LW PD\ EH V\VWHPDWLFDOO\ VRUWHG LQWR VXEMHFW KHDGLQJV DQG WKH FXUUHQW ILOH SHULRGLFDOO\ VHSDUWHG IURP KLVWRULFDO GDWD DQG PDUJLQDO GDWD WKURZQ DZD\ 2UGHULQJ&ODVVLI\LQJ RI /RFDO )LOHV 8QRUGHUHG GDWD ILOHG ZLWKRXW VRUWLQJ 2UGHUHG V\V WHPDWLF VRUWLQJ RI GDWD LQWR FODVVLILHG KHDGLQJV Ff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

PAGE 183

Gf 5HWULHYDO ,QIRUPDWLRQ LQ ORFDO ILOHV PD\ EH DYDLODEOH WR RQO\ D IHZ DXWKRUL]HG LQGLYLGXDOV LQ WKH JURXS UHVWULFWHG DQG SUHVSHFLILHGf 2Q WKH RWKHU KDQG DQ\RQH LQ WKH JURXS PD\ KDYH DFFHVV WR WKH ILOHV ZKR KDV XVH IRU RU LQWHUHVW LQ WKH LQIRUPDWLRQ ,QWUDJURXS $FFHVV WR /RFDO )LOHV 5HVWULFWHG ([WHQVLYH OLPLWHG WR IHZ LQGLYLGXDOV DYDLODEOH WR DOO JURXS PHPEHUV ,QWHUJURXS7R RSHUDWLRQDOL]H WKH LQWHUJURXS LQIRUPDWLRQ V\VWHP DYHUDJH WKH IROORZLQJ IDFWRUV ,QWHUJURXS &RPPXQLFDWLRQ /LQNDJH 6FDOH 'LUHFW FRQWDFW ZLWK HDFK RWKHUrV RIILFH 3DUWLDO ,UGLUHF W FRQWDFW DPRQJ FHQWHUV WKURXJK RQH RU PRUH LQWHUPHGLDULHV ,QWHUJURXS &KDQQHO 'HQVLW\ 6FDOH 6LQJOH RQO\ IRUPDO FKDQQHOV DUH DXWKRUL]HG 0XOWLSOH XVH DQ\ PH DQ V XVHIXO ,QWH 7UDQVPLVVLRQ 7LPH 6FDOH 5HDO WLPH 'HOD\HG WLPH

PAGE 184

,QWHUJURXS 5HWULHYDO 6FDOH 5HVWULFWHG DFFHVV OLPLWHG WR IHZ LQGLYn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

PAGE 185

&RGLQJ RI &HQWUDO 'DWD 6LQJOH LQGH[HG XQGHU RQH KHDGLQJ 0XOWLSOH LQGH[HG XQGHU VHYHUDO KHDGLQJV 9HUWLFDO 5HWULHYDO 6FDOH 5HVWULFWHG DFFHVV OLPLWHG WR IHZ LQGLYn LGXDOV RI RWKHU JURXSV ([WHQVLYH DFFHVV DYDLODEOH WR DOO RWKHU JURXS PHPEHUV 7KH GHILQLWLRQV DQG GHVFULSWLYH PDWHULDO IRU WKH LQWHUJURXS DQG YHUWLFDO YDULDEOHV DUH WKH VDPH DV WKDW IRU WKH LQWUDJURXS +RZHYHU LQ UHDGLQJ GHILQLWLRQV DQG GHVFULSWLYH PDWHULDOV VXEVWLWXWH WKH ZRUG FHQWHUVf IRU SHUVRQVf /HDGHUVKLS 'LPHQVLRQV 7KH GLPHQVLRQV RI OHDGHUVKLS DUH GHILQHG E\ WKH PDQQHU LQ ZKLFK D VXSHUYLVRU GHYHORSV WKH IROORZLQJ +LV UHODWLRQVKLS WR VXERUGLQDWHV +LV UHODWLRQVKLS WR KLV VXSHULRUV RU RWKHU KLJKHU OHYHO PDQDJHUV DQG VSHFLDOLVWV +LV UHODWLRQVKLS WR RWKHU JURXSV SDUWLFXODUO\ WKRVH ZKHUH WKH ZRUN IORZ LV LQWHJUDWHG 2QH FDQ FKDUDFWHUL]H WKH ZD\ D VXSHUYLVRU FDUULHV RXW WKH UHSUHn VHQWDWLRQ IXQFWLRQ VXSSRUWV LQWHUDFWLRQ XVHV VWDQGDUGV VSHFLILHV JRDOV DQG HQFRXUDJHV SDUWLFLSDWLRQ /LNHZLVH WKH FORVHQHVV ZLWK ZKLFK KH VXSHUYLVHV DQG DGKHUHV WR UXOHV DQG WKH XVH KH PDNHV RI UHZDUGV DQG

PAGE 186

SHQDOLWLHV DV PRWLYDWLQJ VWLPXOL +H DOVR PD\ EH GHVFULEHG LQ WHUPV RI WHFKQLFDO TXDOLILFDWLRQV DFWLRQ RULHQWDWLRQV SUREOHP VNLOOV DQG RWKHU SHUVRQDO DELOLWLHV 7\SLFDOO\ LW LV RQ WKH EDVLV RI WKHVH ODWWHU GLn PHQVLRQV WKDW DQ LQGLYLGXDO LV SURPRWHG WR D VXSHUYLVRU\ SRVLWLRQ WKXV LW FRXOG EH H[SHFWHG WKDW WKHVH GLPHQVLRQV KDYH VRPH LQIOXHQFH RYHU WKH EHKDYLRU SDWWHUQV WKDW GHYHORS )RU WKHVH UHDVRQV D SDUWLFXODU OHDGHU FDQ EH UHSUHVHQWHG E\ D SURILOH /HDGHUVKLS )XQFWLRQV f 'HPRFUDWLF *HQHUDO $XWRFUDWLF 5HSUHVHQWDWLRQ 8SZDUG 'RZQZDUG ,QWHUDFWLRQ /DWHUDO 9HUWLFDO 6WDQGDUGV /RZ +LJK *RDO (PSKDVLV *URXS ,QGLYLGXDO 3DUWLFLSDWLRQ ([WHQVLYH 5HVWULFWLYH 'LUHFWLRQ /DLVVH] )DLUH &ORVH 5XOH 2ULHQWDWLRQ -XGPHQWDO 6WULFW 0RWLYDWLRQ 5HZDUGV 3HQDOWLHV 0LVFHOODQHRXV /HDGHUVKLS 'LPHQVLRQV 7HFKQLFDO 4XDOLILn FDWLRQV /LPLWHG f ([WHQVLYH $FWLRQ 2ULHQWDWLRQ 3DVVLYH $FWLYH 3UREOHP 6NLOOV /LPLWHG ([WHQVLYH 3HUVRQDO $ELOLWLHV 1HJDWLYH 3RVLWLYH

PAGE 187

5HSUHVHQWDWLRQ 8SZDUG WR 'RZQZDUG 5HSUHVHQWDWLRQ LV GHILQHG DV WKH DFW RI EHLQJ D VSRNHVPDQ DQG D EXIIHU GHIHQGHUf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n YLVRU ZRXOG QRW UHSUHVHQW VXERUGLQDWHV EXW ZRXOG QRW IRUELG WKHP WR UHSUHVHQW WKHLU RZQ LQWHUHVWV LH KH ZRXOG DVVXPH D SDVVLYH UROH

PAGE 188

5HSUHVHQWDWLRQ &RQWLQXXP 8SZDUG UHSUHVHQWV KLV VXEn RUGLQDWHV 'RZQZDUG UHSUHVHQWV VXSHULRUV DQG RWKHU JURXSV ,QWHUDFWLRQ /DWHUDO WR 9HUWLFDO ,QWHUDFWLRQ PD\ EH VXSSRUWHG RU GLVFRXUDJHG DPRQJ VXSHULRU VXERUGLQDWH OHYHOV ODWHUDOO\ DPRQJ LQGLYLGXDOV DW WKH VDPH OHYHO ZLWKLQ DQG DPRQJ IRUPDO JURXSVf RU LQ VRPH FRPELQDWLRQ RI YHUWLFDO DQG ODWHUDO LQWHUDFWLRQ 7KH VXSHUYLVRU PD\ DFW LQ D QXPEHU RI ZD\V WR VXSSRUW WKHVH GLIIHUHQW SDWWHUQV RI LQWHUDFWLRQ 7KH VXSHUYLVRU PD\ HQFRXUDJH SHHU LQWHUDFWLRQ EXW GLVFRXUDJH VXSHULRUVXERUGLQDWH H[FKDQJHV &RQn YHUVHO\ WKH VXSHUYLVRU PD\ HQFRXUDJH LQWHUDFWLRQ ZLWK KLV VXERUGLQDWHV EXW GLVFRXUDJH ODWHUDO LQWHUDFWLRQ DPRQJ PHPEHUV RI WKH JURXS DQG RWKHU JURXSV 7KH VXSHUYLVRU PD\ VWULYH WR NHHS VXSHULRUVXERUGLQDWH LQWHUDFWLRQ RQ D QHXWUDO EDVLV ZKLOH HQFRXUDJLQJ FORVH SHHU UHODWLRQV 7KH VXSHUn YLVRU PD\ WU\ WR PDLQWDLQ WKH VRFLDO GLVWDQFH LPSOLFLW DPRQJ OHYHOV OLWWOH SHUVRQDO LQWHUDFWLRQ ZRXOG EH LQLWLDWHG E\ WKH VXSHUYLVRU DQG ZRXOG EH JHQHUDOO\ GLVFRXUDJHG LI LQLWLDWHG E\ VXERUGLQDWHV 7KH VXSHUn YLVRUnV LQWHUHVW LQ VXERUGLQDWHV ZRXOG EH VWULFWO\ IXQFWLRQDO FRQILQHG ODUJHO\ WR KHOSLQJ WKHP VROYH SUREOHPV RU GLIILFXOWLHV RQ WKH MRE 7R GHYHORS KLJK JURXS LQWHUDFWLRQ KH ZRXOG HQFRXUDJH VRFLDO LQWHUn DFWLRQ WDONLQJ VKRUW SDUWLHV JLYLQJ RI JLIWV DQG VSHFLDO IXQGV VSRQVRUHG E\ WKH JURXS DQG VLPLODU DFWLYLWLHVERWK RQ DQG RII WKH MRE +H ZRXOG VXSSRUW FRRSHUDWLYH DUUDQJHPHQWV VXFK DV MRE H[FKDQJHV RU SHUPLWWLQJ WKH JURXS WR DVVXPH GXWLHV RI LQGLYLGXDOV ZKR DUH WHPSRUDULO\ RQ XQRIILFLDO OHDYH RU RWKHU UHFLSURFDO DFWLRQV

PAGE 189

,Q KLV RZQ LQWHUDFWLRQ ZLWK VXSHULRUV WKH VXSHUYLVRU ZRXOG GLVn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n LQJ RU WDONLQJ VKRUW SDUWLHV RU RWKHU VRFLDO DFWLYLWLHV RQ WKH MRE ,Q UHVSHFW WR KLV RZQ UHODWLRQV ZLWK VXSHULRUV WKH VXSHUYLVRU ZRXOG VWULYH WR GHYHORS D FORVH UHODWLRQVKLS ZLWK WKHP $W WKH VDPH WLPH KH ZRXOG VHHN WR OLPLW KLV LQWHUDFWLRQ ZLWK RWKHU JURXSV WR WKDW ZKLFK ZRXOG EH UHTXLUHG LQ KLV RIILFLDO FDSDFLW\ +H ZRXOG UHVLVW DQG ZLWKn GUDZ IURP SHHU DWWHPSWV WR LQYROYH KLP LQ D VRFLDO FDSDFLW\ RU RWKHU SHUVRQDO UHODWLRQVKLSV ,QWHUDFWLRQ &RQWLQXXP /DWHUDO LQWHUDFWLRQ 9HUWLFDO LQWHUDFWLRQ &RPELQDWLRQ

PAGE 190

6WDQGDUGV /RZ WR +LJK 6WDQGDUGV VXFK DV WLPH FRVW TXDOLW\ DQG TXDQWLW\ JRDOV RU RWKHU PHDVXUHV RI SHUIRUPDQFH PD\ EH VSHFLILHG DW UHODWLYHO\ ORZ OHYHO WR KLJK OHYHOV 7KH VWDQGDUGV VHW PD\ EH ORZ DQG HDVLO\ PHW 7KH VXSHUYLVRU PD\ DOORZ LQGLYLGXDOV RU JURXSV WR HVWDEOLVK DQG REVHUYH WKHLU RZQ SHUIRUn PDQFH QRUPV :KHUH WKH VXSHUYLVRU HVWDEOLVKHV VWDQGDUGV WKH\ ZRXOG QRUPDOO\ EH WKRVH WKDW UHIOHFW SDVW OHYHOV RI QRUPDO SURGXFWLRQ 2Q WKH RWKHU KDQG WKH VXSHUYLVRU PD\ HVWDEOLVK KLJK VWDQGDUGV b VXFK DV WR SHU FHQW RYHU KLVWRULFDO SHUIRUPDQFH OHYHOV )XUWKHU DV WKHVH VWDQGDUGV ZHUH DFKLHYHG KLJKHU VWDQGDUGV FRXOG EH HVWDEOLVKHG 6WDQGDUGV &RQWLQXXP 7 f /RZ VWDQGDUGV +LJK VWDQGDUGV *RDO (PSKDVLV *URXS WR ,QGLYLGXDO $ VXSHUYLVRU PD\ HVWDEOLVK JURXS RU LQGLYLGXDO JRDOV LQ KLV RULHQWDWLRQ ZLWK VXSHUYLVRUV VXERUGLQDWHV RU RWKHU JURXSV :KHUH JURXS JRDOV DUH HPSKDVL]HG HQFRXUDJHPHQW LV JLYHQ WR WKH LQGLYLGXDO WR FRQWULEXWH WR WKH JURXS 6XERSWLPL]DWLRQ DW WKH LQGLYLn GXDO OHYHO LV GLVFRXUDJHG LI LW DGYHUVHO\ DIIHFWV RWKHUV 2Q WKH RWKHU KDQG LQGLYLGXDO JRDOV PD\ EH HPSKDVL]HG ,QGLYLGXDO SHUIRUPDQFH PD\ EH KLJKOLJKWHG DQG FRPSHWLWLRQ HPSKDVL]HG *RDO (PSKDVLV &RQWLQXXP *URXS ,QGLYLGXDO

PAGE 191

3DUWLFLSDWLRQ ([WHQVLYH WR 5HVWULFWLYH ,Q DUULYLQJ DW D GHFLVLRQ WKH VXSHUYLVRU PD\ VHHN EURDG SDUWLFLn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n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

PAGE 192

7KH RULHQWDWLRQ RI WKH VXSHUYLVRU WRZDUG VXERUGLQDWHV RU RWKHU JURXSV PD\ EH WR SODFH WKHP RQ WKHLU RZQ 7KH VXERUGLQDWHV ZRXOG EH GHSHQGHQW XSRQ WKHLU RZQ FRXQVHO DQG DELOLW\ WR KDQGOH WKHLU SUREOHPV :KHQ VXERUGLQDWHV UHTXHVWHG GLUHFWLRQ DQG JXLGDQFH WKHVH TXHVWLRQV ZRXOG EH UHIHUUHG EDFN WR WKH LQGLYLGXDO RU JURXS WR PDNH WKHLU RZQ GHFLVLRQ 7KH VXSHUYLVRU ZRXOG DVVXPH D SDVVLYH SRVWXUH LQ UHVSHFW WR WKH VXERUGLQDWHV RU RWKHU JURXSV WKDW KLV XQLW ZDV VHUYLQJ 2Q WKH RWKHU KDQG WKH VXSHUYLVRUfV RULHQWDWLRQ WRZDUGV VXERUGLQDWHV RU RWKHU JURXSV PD\ EH WR HVWDEOLVK GHWDLOHG GLUHFWLRQ ERWK VSHFLI\LQJ WKH HQGV DQG WKH PHDQV RI DFKLHYLQJ WKRVH HQGV 7KH RULHQWDWLRQ WRZDUGV WKH VXSHULRU ZRXOG EH WR VHHN GHWDLOHG GLUHFWLRQ DQG EH FRQFHUQHG WKDW GHWDLOHG UHSRUWLQJ SURFHGXUHV ZHUH HVWDEOLVKHG WKXV VKRZLQJ WKH H[WHQW WR ZKLFK WKH YDULRXV VWHSV ZHUH IROORZHG 'LUHFWLRQ &RQWLQXXP /DLVVH] IDLUH &ORVH b 5XOH 2ULHQWDWLRQ -XGJPHQWDO WR 6WULFW 6XSHUYLVRUV PD\ YDU\ LQ WKHLU DWWLWXGHV WRZDUG REVHUYLQJ WKH UXOHV SROLFLHV DQG SURFHGXUDO VWDWHPHQWV WKDW DUH HVWDEOLVKHG 2QH VXSHUn YLVRU PD\ HPSKDVL]H WKH XVH RI MXGJPHQW UHJDUGLQJ WKH QHFHVVDU\ DSSOLn FDWLRQ RI UXOHV DQG SHUPLW RU HYHQ HQFRXUDJH GHYLDWLRQ IURP WKH UXOHV DQG RWKHU SUHVFULSWLRQ ZKHQ WKH\ UHVWULFW JHWWLQJ WKH MRE GRQH 2Q WKH RWKHU KDQG DQRWKHU VXSHUYLVRU PD\ UHTXLUH VWULFW DGKHUHQFH WR UXOHV DQG SROLFLHV VHOGRP SHUPLWWLQJ DQ\ GHYLDWLRQ 2Q WKH RQH KDQG WKH VXSHUYLVRUfV SRVWXUH WRZDUGV VXERUGLQDWHV DQG RWKHU JURXSV PD\ EH WR HPSKDVL]H WKH HQGV DQG QRW WKH PHDQV KH SHUPLWV DQG HQFRXUDJHV EURDG GHYLDWLRQ IURP IRUPDO SUHVFULSWLRQV ZKHQ WKH\

PAGE 193

LPSHGH JHWWLQJ WKH MRE GRQH 7KH VXSHUYLVRU GLVUHJDUGV WKH IRUPDO $ UHVWULFWLRQV WKDW KDYH EHHQ LPSRVHG RQ KLV RIILFH DQG WKRVH EHORZ KLP 7KLV PD\ EH GRQH E\ Df H[SOLFLWO\ DXWKRUL]LQJ HLWKHU YHUEDOO\ RU LQ ZULWLQJf KLV VXERUGLQDWHV WR LJQRUH SROLFLHV DQG UXOHV WKDW KDYH EHHQ VHW IRUWK E\ KLJKHU PDQDJHPHQW Ef DOORZLQJ VXERUGLQDWHV WR LQLWLDWH DQG FRQWLQXH GHYLDWLRQV IURP WKH IRUPDO UHVWULFWLRQV HYHQ WKRXJK WKH\ KDYH QRW EHHQ JLYHQ H[SOLFLW SHUPLVVLRQ WR GR VR 2Q WKH RWKHU KDQG WKH VXSHUYLVRU PD\ HPSKDVL]H UXOH DQG SROLF\ DGKHUHQFH 6XERUGLQDWHV DUH SURKLELWHG WR GHYLDWH IURP WKH UXOHV DQG SUHVFULSWLRQV DQG V\VWHPDWLF FKHFNV DUH PDGH WR VHH WKDW WKH\ GR QRW 'HYLDWLRQ IURP UXOHV RFFXUV RQO\ ZKHQ D IRUPDO DXWKRUL]DWLRQ IRU VXFK GHYLDWLRQ LQ ZULWLQJ LV SURYLGHG E\ KLV VXSHULRU RU WKRVH ZKR LQLWLDOO\ IRUPXODWHG WKH UXOHV DQG UHJXODWLRQV 5XOH 2ULHQWDWLRQ &RQWLQXXP -XGJPHQWDO 6WULFW 0RWLYDWLRQ 5HZDUGV WR 3HQDOWLHV 7KHUH DUH GLIIHUHQW ZD\V LQ ZKLFK SHUIRUPDQFH PD\ EH PRWLYDWHG E\ XVH RI UHZDUGV DQG VDQFWLRQV 2Q WKH RQH KDQG WKHUH PD\ EH D SULPDU\ HPSKDVLV RQ WKH XVH RI UHZDUGV DQG FRXQVHOLQJ WR PRWLYDWH 2Q WKH RWKHU KDQG WKHUH PD\ EH KHDY\ HPSKDVLV XSRQ DSSO\LQJ VDQFWLRQV ZKHQ SHUIRUPDQFH LVQnW XS WR H[SHFWDWLRQV 7KH VXSHUYLVRU PD\ SULPDULO\ UHO\ XSRQ UHZDUGLQJ JRRG SHUIRUPDQFH WUDLQLQJ DQG FRXQVHOLQJ WR RULHQW DQG PRWLYDWH VXERUGLQDWHV DQG RWKHUV ,QIRUPDWLRQ RQ VXFK SHUIRUPDQFH OHYHOV DV FRVW TXDOLW\ TXDQWLW\ WUHQGV RU FRPSODLQWV ZRXOG EH XVHG WR GLUHFW DWWHQWLRQ WR SUREOHP DUHDV +LV DSSURDFK ZRXOG EH WR GLVFXVV WKH PDQQHU LQ ZKLFK WKH SUREOHP FRXOG EH VROYHG DQG WR VHW JRDOV ZRUNLQJ LQ WKDW GLUHFWLRQ

PAGE 194

2Q WKH RWKHU KDQG D VXSHUYLVRU PD\ XVH VDQFWLRQV KHDYLO\ DV D PHDQV RI PRWLYDWLQJ SHUIRUPDQFH :KHUH SRRU SHUIRUPDQFH GHYHORSV VKDUS VDQFWLRQV ZRXOG WHQG WR EH LQYRONHG LH ILULQJ WUDQVIHUULQJ GHPRWLQJ UHYRNLQJ SULYLOHJHV HWFf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f $ VXSHUYLVRU PD\ SRVVHVV YDULRXV OHYHOV RI WHFKQLFDO TXDOLILFD WLRQVSURIHVVLRQDO WUDLQLQJ ZRUN H[SHULHQFH DQG WHFKQLFDO NQRZOHGJH WKDW DUH UHOHYDQW WR WKH DVVLJQHG UHVSRQVLELOLWLHV 7KHVH FDQ EH EURDGO\ GHVFULEHG $FWLRQ 2ULHQWDWLRQ 3DVVLYH WR $FWLYH 7KH DFWLRQ RULHQWDWLRQ UHIHUV WR D VHW RI IDFWRUV WKDW GHVFULEH WKH DSSURDFK WR WKH MRE ,W LQFOXGHV WKH WHQGHQF\ WR GHOD\ PDNLQJ

PAGE 195

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n FDWLQJ VNLOOV KRZ FULWLFLVP LV KDQGOHG HPRWLRQDOLW\ DQG SUHGLFWDELOLW\ WHQGHQF\ WR GRPLQDWH DQG SRLVH (DFK RI WKHVH DVSHFWV RI OHDGHUVKLS LV RSHUDWLRQDOL]HG E\ WKH OHDGHUVKLS TXHVWLRQQDLUH

PAGE 196

$33(1',; $ 0(025$1'80 $1' 48(67,211$,5(6

PAGE 197

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

PAGE 198

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} 2%% $OZD\V 2IWHQ 2FFDVLRQDOO\ 6HOGRP 1HYHU ,I \RX IHOW WKDW \RXU VXSHULRU 2FFDVLRQDOO\ EXW QRW UHDOO\ 6HOGRP DVVLJQHG SHRSOH LQ \RXU ZRUN JURXS WR SDUWLFXODU WDVNV WKHQ \RX ZRXOG FLUFOH QXPEHU OLNH WKLV k $OZD\V 2IWHQ 2FFDVLRQDOO\ 6HOGRP 1HYHU 6RPH TXHVWLRQV ZLOO KDYH RQO\ WKH WZR HQGV RI WKH FRQWLQXXP GHILQHG OLNH WKLV $OZD\V 1HYHU 6HOHFW WKH QXPEHU FORVHVW WR WKH ZD\ \RX IHHO DERXW WKH VWDWHPHQW DQG FLUFOH LW # $OZD\V 1HYHU 7KH 6WUXFWXUDO 4XHVWLRQQDLUH PD\ FRQWDLQ VRPH VWDWHPHQWV WKDW \RX DUH XQDEOH WR DQVZHU EHFDXVH \RX ODFN VXIILFLHQW LQIRUPDWLRQ ,I WKDW LV WKH FDVH RPLW WKDW SDUWLFXODU TXHVWLRQ RU \RX PD\ ZULWHLQ VRPH FODULn I\LQJ VHQWHQFH WKDW ZLOO KHOS XV VFRUH WKDW LWHP 7KH /HDGHUVKLS DQG %HKDYLRUDO 4XHVWLRQQDLUHV FDOO IRU \RXU RSLQLRQ RQO\
PAGE 199

7KLV ,V 1RW D 7HVW 7KHUH DUH QR ULJKWf DQVZHUV DQG QR ZURQJ DQVZHUV ,W LV \RXU RZQ KRQHVW RSLQLRQ WKDW ZH ZDQW :KHQ
PAGE 200

25*$1,=$7,21 6758&785( 48(67,211$,5( :RUN *URXS &RXQWLQJ \RXUVHOI ZKDW LV WKH WRWDO QXPEHU RI SHRSOH LQ \RXU ZRUN JURXS" BBBBB 2I WKLV WRWDO KRZ PDQ\ DUH \RX GLUHFWO\ UHVSRQVLEOH IRU" :LWKLQ \RXU ZRUN JURXS ZKDW EHVW GHVFULEHV WKH GHJUHH RI WDVN VSHFLDOLn ]DWLRQ" 3OHDVH FLUFOH DSSURSULDWH QXPEHUf ([WHQVLYH VSHFLDOL]DWLRQ :RUNHUV ZLWKLQ P\ ZRUN JURXS DUH GHSHQGHQW XSRQ WKH SURSHU SHUIRUPDQFH RI ZRUN E\ RWKHUV ZLWKLQ WKH JURXS IRU SURSHU SHUIRUPDQFH RI WKHLU ZRUN )RU H[DPSOH WKH ZRUN LV GLYLGHG LQWR VPDOOHU HOHPHQWV LQ D VWHSOLNH SURFHVV &RQVLGHUDEOH VSHFLDOL]DWLRQ 0RGHUDWH DPRXQW RI VSHFLDOL]DWLRQ 6RPH VSHFLDOL]DWLRQ /LWWOH VSHFLDOL]DWLRQ :KDW HDFK PHPEHU RI WKH ZRUN JURXS GRHV KDV OLWWOH HIIHFW RQ RWKHU PHPEHUV RI WKH JURXS

PAGE 201

:LWKLQ \RXU ZRUN JURXS ZKDW EHVW GHVFULEHV WKH QXPEHU RI LQGLYLGXDOV GHSHQGHQW XSRQ \RXU VHUYLFHVRXWSXW" 1RQH 6RPH 0RGHUDWH &RQVLGHUDEOH 0D Q\ GRQnW SURn YLGH LQSXWV IRU RWKHU JURXS PHPEHUV WZR RU PRUH IRXU RU PRUH VL[ RU PRUH HLJKW RU PRUH DUH GHSHQGHQW XSRQ WKH RXWn SXW RI D SRVLWLRQ :LWKLQ \RXU ZRUN JURXS WKHUH PD\ H[LVW ZD\V LQ ZKLFK WKH LPSDFW RI EUHDNn GRZQV LQ ZRUN IORZ FDQ EH OHVVHQHG ,QYHQWRULHV PD\ H[LVW D EDFNORJ RI RWKHU ZRUN PD\ EH SHUIRUPHG HWF :KDW EHVW GHVFULEHV \RXU ZRUN JURXS" B ([WHQVLYH 6RPH PDQ\ ZD\V RI PDNLQJ GDLO\ RU ZHHNO\ DGn MXVWPHQWV WR EUHDNGRZQ LQ ZRUNIORZ 0RGHUDWH &RQVLGHUDEOH )HZ OLWWOH WKDW FDQ EH GRQH ZKHQ EUHDNn GRZQ LQ ZRUN IORZ RFFXUV :LWKLQ \RXU ZRUN JURXS WKHUH PD\ EH YDU\LQJ GHJUHHV WKDW JURXS PHPEHUV FDQ GR HDFK RWKHUV MREV 0RVW PHPEHUV PD\ EH WUDLQHG WR GR DQ\ MRE LQ WKH JURXS RU PRVW LQGLYLGXDOV PD\ EH DEOH WR RQO\ KDQGOH WKHLU RZQ MRE :KDW EHVW GHVFULEHV \RXU JURXS" ([WHQVLYH PRVW KDYH DELOLW\ WR GR HDFK RWKHUV7 MREV BB 6RPH 0RGHUDWH &RQVLGHUDEOH DW OHDVW KDOI WKH MREV FRXOG EH SHUIRUPHG E\ WZR RU PRUH SHUVRQV /LWWOH IHZ ZRXOG EH DEOH WR GR RWKHUVn MREV :LWKLQ \RXU ZRUN JURXS ZKDW EHVW GHVFULEHV WKH WDONLQJ GLVWDQFH LQYROYHG DPRQJ \RXU JURXS PHPEHUV" -/ B /LWWOH 6RPH PRVW PHPn EHUV DUH ZLWKLQ WDONn LQJ GLVWDQFH 0RGHUDWH &RQVLGHUDEOH KDOI DUH ZLWKLQ WDONn LQJ GLVWDQFH ([WHQ VLYH SUDFWLFDOO\ QRERG\ LV ZLWKLQ WDONn LQJ GLVWDQFH

PAGE 202

:LWKLQ \RXU ZRUN JURXS PHPEHUV" ZKDW EHVW GHVFULEHV WKH VSDFLQJ DPRQJ WKH JURXS 'LUHFW PRVW PHPEHUV DUH ORFDWHG IDFHWRIDFH 3DUWLDO VLGHE\VLGH UHODWLRQVKLS DPRQJ PRVW PHPEHUV ,QGLUHFW EDFNWREDFN UHODWLRQVKLS DPRQJ PRVW PHPEHUV :LWKLQ \RXU ZRUN JURXS ZKDW EHVW GHVFULEHV WKH H[WHQW RI SK\VLFDO EDUULHUV ZDOOV SDUWLWLRQV HWFf DPRQJ JURXS PHPEHUV" 1RQH QR SK\VLFDO EDUULHUV 6RPH 3DUWLDO &RQVLGHUDEOH VRPH EDUULHUV EHWZHHQ DERXW KDOI RI WKH JURXS EXW QRQH EHWZHHQ WKH UHVW ([WHQVLYH SK\VLFDO VHSDUDWLRQ DPRQJ LQGLYLGXDOV :LWKLQ \RXU ZRUN JURXS ZKDW EHVW GHVFULEHV WKH H[WHQW WKDW JURXS PHPEHUV DUH VHSDUDWHG RQ GLIIHUHQW IORRUV" 1RQH 6RPH DOO ORFDWHG RQ VDPH IORRU 3DUWLDO &RQVLGHUDEOH B -K ([WHQVLYH VFDWWHUHG RQ GLIIHUHQW IORRUV :LWKLQ \RXU ZRUN JURXS ZKDW EHVW GHVFULEHV WKH H[WHQW ZKLFK WLPH VFKHGXOHV GLIIHUHQW VKLIWV HWFf VHSDUDWH \RXU JURXS PHPEHUV" &RQVLGHUDEOH ([WHQVLYH ZLGH GLIIHUHQFHV LQ VFKHGXOLQJ RI ZRUNLQJ KRXUV FRIIHH EUHDNV t OXQFK KRXUV IRU JURXS PHPEHUV :LWKLQ \RXU ZRUN JURXS ZKDW EHVW GHVFULEHV WKH QRLVH OHYHO VHSDUDWLQJ \RXU JURXS PHPEHUV" /RZ 6RPH 0RGHUDWH &RQVLGHUDEOH r +LJK QRLVH QRLVH 1R VHSDUD 6RPH 3DUWLDO WLRQ EHJLQQLQJ TXLWWLQJ KRXUV OXQFK KRXUV FRIIHH EUHDNV DUH VFKHGXOHG DW VDPH WLPH

PAGE 203

:LWKLQ \RXU ZRUN JURXS WKHUH PD\ H[LVW D QXPEHU RI IDFWRUV WKDW DIIHFW ZRUN GHPDQGV )RU H[DPSOH VKRUWDJHV RI PDWHULDO PDFKLQH EUHDNGRZQV YDULDWLRQ LQ WKH UDWH RI SURGXFWLRQ HWF &LUFOH WKH QXPEHU WKDW EHVW GHVFULEHV WKH VLWXDWLRQ WKDW H[LVWV LQ \RXU ZRUN JURXS 'XULQJ D GD\ O +LJK &RQVLGHUDEOH VWDEOH GHn PDQGV DUH XVXDO GXUn LQJ WKH GD\ 'XULQJ HDFK ZHHN B +LJK &RQVLGHUDEOH VWDEOH GHn PDQGV DUH XVXDO GXUn LQJ WKH ZHHN 'XULQJ HDFK PRQWK +LJK &RQVLGHUDEOH VWDEOH GHn PDQGV DUH XVXDO IURP ZHHNWRZHHN 0HGLXP DERXW KDOI WKH WLPH GHPDQGV DUH VWDEOH 0HGLXP DERXW KDOI WKH WLPH GHPDQGV DUH VWDEOH 0HGLXP DERXW KDOI WKH WLPH GHPDQGV DUH VWDEOH B 6RPH B 6RPH 6RPH /RZ XQVWDEOH DQG IOXFWXDWLQJ GHPDQGV GXUn LQJ WKH GD\ /RZ XQVWDEOH DQG IOXFWXDWLQJ GHPDQGV GXUn LQJ WKH ZHHN B /RZ XQVWDEOH DQG IOXFWXDWLQJ GHPDQGV IURP ZHHNWRZHHN ,Q VRPH MREV WKLQJV DUH IDLUO\ SUHGLFWDEOHLI \RX GR VRPHWKLQJ \RX NQRZ ZKDW ZLOO KDSSHQ ,Q RWKHUV \RX RIWHQ DUH QRW VXUH ZKHWKHU VRPHWKLQJ ZLOO ZRUN RU QRW :KDW SHUFHQW RI WKH WLPH ZRXOG \RX VD\ WKDW \RX DUH VXUH ZKHWKHU VRPHWKLQJ \RX GR ZLOO ZRUN" R R $OPRVW 8VXDOO\ 2IWHQ 6RPHWLPHV 6HOGRP DOZD\V 6RPHWLPHV HYHQ WKRXJK \RX GRQfW NQRZ KRZ WR KDQGOH D SUREOHP \RX FDQ JR WR VRPHRQH HOVH LQ \RXU JURXS RU HOVHZKHUH IRU UHOLDEOH KHOS ,Q RWKHU FDVHV QRERG\ HOVH LV OLNHO\ WR EH DEOH WR SURYLGH DQ\ UHOLDEOH KHOS :KDW SHUFHQW RI WKH WLPH FDQ \RX JR WR RWKHUV IRU UHOLDEOH KHOS ZKHQ \RX DUH DW D ORVV RQ KRZ WR VROYH D SUREOHP" $OPRVW DOZD\V b 8VXDOO\ b 2IWHQ b 6RPHWLPHV b 6HOGRP

PAGE 204

+RZ PDQ\ ZRUN JURXSV DUH GHSHQGHQW XSRQ \RXU JURXSnV VHUYLFHVRXWSXW" -/ 1RQH 6RPH GRQnW SUR WZR RU YLGH LQSXWV PRUH IRU RWKHU JURXSV 0RGHUDWH IRXU RU PRUH &RQVLGHUDEOH 0DQ\ VL[ RU PRUH HLJKW RU PRUH DUH GHSHQGHQW XSRQ WKH RXWSXW RI P\ JURXS 7KH QH[W HLJKW TXHVWLRQV f SHUWDLQ WR \RXU ZRUN JURXS DQG LWV UHODWLRQV ZLWK WKH IROORZLQJ ZRUN JURXS :KDW EHVW GHVFULEHV WKH UHODWLRQ EHWZHHQ \RXU JURXS DQG WKH DERYH JURXS UHJDUGLQJ WKH GHJUHH RI LQWHUGHSHQGHQF\" B B /LWWOH ZKDW ZH GR KDV OLWWOH HIIHFW RQ WKH DERYH JURXS 6RPH 0RGHUDWH &RQVLGHUDEOH ([WHQVLYH WKH DERYH JURXS LV GHn SHQGHQW XSRQ RXU RXWSXW VHUYLFHV ,I WKHUH LV D GLVUXSWLRQ LQ ZRUN IORZ EHWZHHQ \RXU JURXS DQG WKH DERYH JURXS ZKDW EHVW GHVFULEHV RI WKH LPSDFW" \RXU SRVVLEOH DFWLRQV UHJDUGLQJ WKH OHVVHQLQJ ([WHQVLYH &RQVLGHUDEOH 0RGHUDWH 6RPH )HZ PDQ\ ZD\V RI OLWWOH WKDW PDNLQJ GDLO\ FDQ EH GRQH RU ZHHNO\ ZKHQ EUHDNn DGMXVWPHQWV WR GRZQ LQ EUHDNGRZQ LQ ZRUNIORZ ZRUNIORZ RFFXUV

PAGE 205

:KDW EHVW GHVFULEHV WKH WDONLQJ GLVWDQFH LQYROYHG EHWZHHQ \RXU ZRUN JURXS DQG WKH DERYH JURXS" /LWWOH 6RPH 0RGHUDWH &RQVLGHUDEOH ([WHQVLYH PRVW RI WKH KDOI DUH SUDFWLFDOO\ JURXSV PHPn ZLWKLQ QRERG\ LV EHUV DUH ZLWKn WDONLQJ ZLWKLQ WDONn LQ WDONLQJ GLVWDQFH LQJ GLVWDQFH GLVWDQFH :KDW EHVW GHVFULEHV WKH JURXS" 'LUHFW PRVW RI WKH JURXSV PHPn EHUV DUH ORFDWHG IDFHWRIDFH VSDFLQJ EHWZHHQ \RXU ZRUN 3DUWLDO VLGHE\VLGH UHODWLRQVKLS EHWZHHQ PRVW PHPEHUV JURXS DQG WKH DERYH f f f f f f r ff ,QGLUHFW EDFNWREDFN UHODWLRQVKLS EHWZHHQ WKH JURXSV I PHPEHUV :KDW EHVW GHVFULEHV WKH H[WHQW RI SK\VLFDO EDUULHUV ZDOOV SDUWLWLRQV HWFf EHWZHHQ \RXU ZRUN JURXS DQG WKH DERYH JURXS" B 1RQH 6RPH QR SK\VLFDO EDUULHUV 3DUWLDO &RQVLGHUDEOH VRPH EDUn ULHUV EHn WZHHQ DERXW KDOI RI WKH JURXSV PHPn EHUV EXW QRQH EHWZHHQ WKH UHVW ([WHQVLYH SK\VLFDO VHSDUDWLRQ EHWZHHQ WKH JURXSV

PAGE 206

:KDW EHVW GHVFULEHV WKH H[WHQW WKDW \RXU JURXS PHPEHUV DUH VHSDUDWHG RQ GLIIHUHQW IORRUV IURP PHPEHUV RI WKH DERYH JURXS" 1RQH 6RPH 3DUWLDO ORFDWHG RQ WKH VDPH IORRU &RQVLGHUDEOH ([WHQVLYH VFDWWHUHG RQ GLIIHUHQW IORRUV :KDW EHVW GHVFULEHV WKH H[WHQW ZKLFK WLPH VFKHGXOHV GLIIHUHQW VKLIWV HWFf VHSDUDWH \RXU ZRUN JURXS IURP WKH DERYH JURXS" -/ B 1R VHSDU 6RPH DWLRQ EHJLQQLQJ TXLWWLQJ KRXUV OXQFK KRXUV FRIIHH EUHDNV DUH VFKHGXOHG DW WKH VDPH WLPH 3DUWLDO &RQVLGHUDEOH ([WHQVLYH ZLGH GLIn IHUHQFHV LQ VFKHGXOLQJ RI ZRUNLQJ KRXUV FRIIHH EUHDNV t OXQFK KRXUV EHWZHHQ WKH JURXSV :KDW EHVW GHVFULEHV WKH QRLVH OHYHO VHSDUDWLQJ \RXU ZRUN JURXS IURP WKH DERYH JURXS" /RZ QRLVH 6RPH OHYHO EHn WZHHQ WKH JURXSV 0RGHUDWH &RQVLGHUDEOH +LJK QRLVH OHYHO EHn WZHHQ WKH JURXSV

PAGE 207

3OHDVH OLVW WKH PDMRU GHFLVLRQV RU WKH PDMRU DFWLRQV WKDW \RX WDNH LQ SHUIRUPLQJ \RXU MRE :KDW SHUFHQWDJH RI GHFLVLRQV LV \RXU ZRUN JURXS SHUPLWWHG WR PDNH ZLWKRXW FKHFNLQJ ZLWK RU REWDLQLQJ DSSURYDO RI KLJKHU OHYHO VXSHUYLVLRQ" b b b b b

PAGE 208

:KDW EHVW GHVFULEHV WKH GHJUHH RI GLVFUHWLRQ WKDW LV OHIW WR \RXU ZRUN JURXS E\ WKH SROLFLHV SURFHGXUHV DQG UXOHV ODLG GRZQ E\ KLJKHU OHYHO PDQDJHPHQW DQG VWDII JURXSV FLUFOH PRVW DSSOLFDEOHf 5HVWULFWHG GLVFUHWLRQV 7KH SROLFLHV SURFHGXUHV DQG UXOHV OLPLW GLVn FUHWLRQ LQ GHFLVLRQ PDNLQJ WR URXWLQH XQLPSRUWDQW GHWDLOV WKHUH LV QR OHHZD\ IRU DGDSWDWLRQ WR ORFDO FRQGLWLRQV VSHFLDO VLWXDWLRQV RU GLIn IHUHQW LGHDV LQ SHUIRUPLQJ WKH MRE DVVLJQPHQW 7KHUH LV SUDFWLFDOO\ QR UHOLDQFH XSRQ WKH LQGLYLGXDOnV MXGJPHQW JHQHUDO FRPSHWHQFH DQG DGKHUHQFH WR SURIHVVLRQDO VWDQGDUGV WR SHUIRUP WKH MRE SURSHUO\ 6RPH 0RGHUDWH GLVFUHWLRQ 7KHUH DUH SROLF\ DQG SURFHGXUH VWDWHPHQWV DQG UXOHV WKDW FRYHU PRVW LPSRUWDQW GHFLVLRQV LQ WKH MRE WKHUH LV KRZHYHU VRPH GLVFUHWLRQ WR DGMXVW WR ORFDO FRQGLWLRQV VSHFLDO VLWXDWLRQV DQG RSSRUWXQn LW\ WR LPSOHPHQW QHZ LGHDV LQ SHUIRUPLQJ WKH MRE DVVLJQPHQW WKHUH LV VRPH UHOLDQFH XSRQ WKH MXGJPHQW JHQHUDO FRPSHWHQFH DQG DGKHUHQFH WR SURIHVVLRQn DO RU WUDGHf VWDQGDUGV WR RULHQW WKH LQGLYLGXDO LQ GRLQJ KLV MRE SURSHUO\ *HQHUDO ([WHQVLYH GLVFUHWLRQ ,QGLYLGXDOV KDYH EURDG GLVFUHWLRQ LQ PDNLQJ GHn FLVLRQV WKHUH LV JHQHUDO IOH[LELOLW\ WR DGMXVW WR ORFDO FRQGLWLRQV VSHFLDO VLWXDWLRQV DQG LPSOHPHQW GLIIHUHQW LGHDV LQ SHUIRUPLQJ WKH MRE DVVLJQPHQW KLJKHU OHYHO VXSHUYLVLRQ EURDGO\ UHOLHV XSRQ MXGJPHQW JHQHUDO FRPSHWHQFH DQG DGKHUHQFH WR SURIHVVLRQDO VWDQGDUGV WR RULHQW WKH LQGLYLGXDO WR GR WKH MRE SURSHUO\

PAGE 209

,Q \RXU ZRUN XQLW KRZ PDQ\ OHYHOV LQ WKH GLUHFW FKDLQ RI FRPPDQG DUH WKHUH WR WKH SODQW PDQDJHU" &RXQW WKH VXSHUYLVRUIRUHPDQ DW WKH ERWWRP RI WKH FKDLQ RI FRPPDQG DV QXPEHU RQHf :KDW ZRXOG EHVW GHVFULEH WKH H[WHQW WKDW SRVLWLRQV DW WKHVH GLIIHUHQW OHYHOV LQ \RXU XQLW DUH GLIIHUHQWLDWHG" )RU H[DPSOH GLIIHUHQFHV LQ VWDWXV V\PEROVWLWOHV VDODULHV DQG VSHFLDO SULYLOHJHVSDUNLQJ VSDFHV HDWLQJ IDFLOLWLHV RIILFHV GHVN VL]HV VSHFLDO VXSSRUW HWFf 21 Y2 P &2 &1 ([WHQVLYH GLIIHUHQFH 7KHUH LV D VKDUSO\ JUDGHG VHW RI SULYLOHJHV WKDW JR ZLWK SRVLWLRQV LW ZRXOG EH DSSDUHQW HYHQ WR DQ RXWVLGHU ZKR LV DW D KLJKHU OHYHO &RQVLGHUDEOH GLIIHUHQFH 0RGHUDWH GLIIHUHQFH 7KRVH KROGLQJ PDMRU SRVLWLRQV KDYH VSHFLDO SULYLOHJHV DQG ZHOO GHILQHG VDODU\ GLIIHUHQFHV EXW WKHUH DUH RQO\ PLOG GLIIHUHQFHV DPRQJ PRVW RI WKH OHYHOV LQ WKH RUJDQL]DWLRQ 6RPH GLIIHUHQFH /LWWOH GLIIHUHQFH $Q RXWVLGHU FRXOGQfW WHOO WKH GLIIHUHQFHV EHWZHHQ SHRSOH DW GLIIHUHQW OHYHOV HYHU\ERG\ KDV DERXW WKH VDPH SULYLOHJHV RI SDUNLQJ RIILFHV VL]HV DQG IXUQLWXUH VSHFLDO VHUYLFHV DQG VDODU\f ,Q \RXU ZRUN JURXSfV DUHD RI VSHFLDOW\UHVSRQVLELOLW\ WR ZKDW H[WHQW GR \RX KDYH WKH DXWKRULW\ WR PDNH GHFLVLRQV IRU RWKHU GHSDUWPHQWV RU ZRUN JURXSV" 7KH H[WHQW WKDW WKH\ PXVW REWDLQ \RXU JURXSfV IRUPDO DSSURYDO RQ GHFLVLRQVf -O /LWWOH ZH FDQ RQO\ DGYLVH 6RPH ZH FDQ PDNH VRPH GHFLVLRQV EXW PRVWO\ DGYLVRU\ 0RGHUDWH ZH FDQ PDNH VRPH LPSRUWDQW GHFLVLRQV EXW RQO\ DGYLVH RQ PRVW LPSRUWDQW GHFLVLRQV &RQVLGHUDEOH ZH KDYH OLQH DXWKRULW\ RYHU PRVW GHFLVLRQV EXW DGYLVRU\ RQ VRPH ([WHQVLYH ZH KDYH OLQH DXWKRULW\ WR PDNH PRVW GHFLVLRQV

PAGE 210

7R ZKDW H[WHQW GR RWKHU GHSDUWPHQWV RU ZRUN JURXSV LQ WKHLU DUHD RI VSHFLDOW\UHVSRQVLELOLW\ KDYH WKH DXWKRULW\ WR PDNH GHFLVLRQV WKDW DIIHFW \RXU ZRUN JURXS" )RU H[DPSOH DGPLQLVWUDWLYH VHUYLFHV PD\ KDYH ILQDO DXWKRULW\ RYHU KLULQJ ILULQJ RU SURPRWLRQV TXDOLW\ FRQWURO PD\ GHWHUn PLQH SURGXFWLRQ VWDQGDUGV HWFf /LWWOH f§ WKH\ FDQ RQO\ DGYLVH 6RPH WKH\ FDQ PDNH VRPH GHFLVLRQV EXW PRVWO\ DGYLVRU\ 0RGHUDWH f§ WKH\ FDQ PDNH VRPH LPSRUWDQW GHFLVLRQV EXW RQO\ DGYLVH RQ PRVW LPSRUWDQW GHFLVLRQV &RQVLGHUDEOH f§ WKH\ KDYH OLQH DXWKRULW\ RYHU PRVW GHFLVLRQV EXW DGYLVRU\ RQ VRPH ([WHQVLYH f§ WKH\ KDYH OLQH DXWKRUn LW\ WR PDNH PRVW GHFLVLRQV :KDW EHVW GHVFULEHV WKH IRUPDO VSHFLILHG SHUIRUPDQFH VWDQGDUGV VXFK DV WLPH FRVW TXDQWLW\ TXDOLW\ HWF WKDW LV H[SHFWHG RI HDFK LQGLYLGXDO LQ \RXU ZRUN JURXS" B 6WDQGDUGV DUH QHDUO\ DOO YDJXH DQG DPELJXRXV 0RVWO\ YDJXH ZLWK VRPH WKDW DUH FOHDU 0RGHUDWHO\ FOHDU ZLWK VRPH YDJXHn QHVV 8VXDOO\ FOHDU EXW VRPH WKDW DUH YDJXH 6WDQGDUGV PRVWO\ FOHDU DQG XQDPELJXRXV :KDW EHVW GHVFULEHV WKH IRUPDO PHDVXUHPHQW V\VWHP DQG WKH PHDVXULQJ LQVWUXPHQWV WKDW DUH XVHG WR PHDVXUH LQGLYLGXDO SHUIRUPDQFH OHYHOV LQ \RXU ZRUN JURXS" B 1R IRUPDO LQVWUXPHQWV f§ RQO\ SRRU PHDVXUHV RI LQGLYLGXDO SHUIRUPDQFH 6 RPH VRPH PHDVXUHV RI LQGLYLGXDO SHUIRUPDQFH 0RGHUDWH f§ D IHZ JRRG PHDVXUHV RI LQGLYLGXDO SHUIRUPDQFH &RQVLGHUDEOH f§ VHYHUDO JRRG PHDVXUHV RI LQGLYLGXDO SHUIRUPDQFH ([WHQVLYH f§ QXPHURXV JRRG PHDVXUHV RI LQGLYLGXDO SHUIRUPDQFH :KDW EHVW GHVFULEHV LQ \RXU ZRUN JURXS WKH DSSOLFDWLRQ RI VDQFWLRQV RU SHQDOWLHV WDNLQJ DZD\ RI VSHFLDO SULYLOHJHV VDODU\ UHGXFWLRQV GHPRn WLRQV RU ILULQJf DQG LWV UHODWLRQVKLS WR SRRU LQGLYLGXDO SHUIRUPDQFH" /LWWOH UHODWLRQVKLS EHWZHHQ SHQn DOWLHV DQG SRRU SHUIRUPDQFH 0RGHUDWH &RQVLGHUDEOH UHODWLRQVKLS EHWZHHQ SHQn DOWLHV DQG SRRU SHUIRUPDQFH 'LUHFW UHODWLRQVKLS EHWZHHQ SHQn DOWLHV DQG SRRU SHUIRUPDQFH 6RPH

PAGE 211

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f MRE UHODWHG FRPPXQLFDWLRQ VLWXDWLRQ LQ \RXU RUJDQL]DWLRQ" 8QUHVWULFWHG 6RPHZKDW 3DUWLDOO\ 6RPHZKDW 5HVWULFWHG FRQWDFW ZLWK XQUHVWULFWHG UHVWULFWHG SHUPLVVLRQ KLJKHU RU ORZHU PXVW EH REn OHYHOV LV WDLQHG SULRU DXWKRUL]HG WR FRQWDFWLQJ KLJKHU RU ORZHU OHYHOV

PAGE 212

M? Y2 P FR &0 :LWKLQ \RXU ZRUN JURXS ZKDW EHVW GHVFULEHV WKH MRE UHODWHG FRPPXQLFDWLRQ V\VWHP" 5HVWULFWHG ,QGLYLGXDOV ZLWKLQ WKH JURXS DUH H[SHFWHG WR FOHDU FRQWDFWV ZLWK JURXS PHPEHUV ZLWK WKH VXSHUYLVRU RU RWKHUV EHIRUH DVNLQJ IRU RU JLYLQJ LQIRUPDWLRQ 6RPHZKDW UHVWULFWHG 3DUWLDOO\ 6RPHZKDW XQUHVWULFWHG 8QUHVWULFWHG ,QGLYLGXDOV ZLWKLQ WKH JURXS DUH DXWKRUL]HG WR FRQWDFW DQ\ RWKHU JURXS PHPEHU DQG UHTXHVW RU JLYH KLP LQIRUPDWLRQ WKDW ZRXOG EH KHOSIXO LQ KLV MRE ,Q \RXU ZRUN JURXSV UHODWLRQV ZLWK RWKHU JURXSV DW WKH VDPH OHYHO ZKDW EHVW GHVFULEHV \RXU MRE UHODWHG FRPPXQLFDWLRQV" 21 12 P FR &0 5HVWULFWHG ,QGLYLGXDOV DUH H[SHFWHG WR FOHDU FRQWDFWV ZLWK PHPEHUV RI RWKHU JURXSV ZLWK WKH VXSHUYLVRU RU RWKHUV EHIRUH DVNLQJ IRU RU JLYLQJ LQIRUPDWLRQ 6RPHZKDW UHVWULFWHG 3DUWLDOO\ 6RPHZKDW XQUHVWULFWHG 8QUHVWULFWHG ,QGLYLGXDOV DUH DXWKRUL]HG WR FRQWDFW DQ\ RWKHU LQGLYLGXDO LQ RWKHU JURXSV DQG UHTXHVW RU JLYH KLP LQIRUPDWLRQ WKDW ZRXOG EH KHOSIXO LQ KLV MRE

PAGE 213

:LWKLQ \RXU ZRUN JURXS WKHUH PD\ EH IHZ DXWKRUL]HG ZD\V RI FRPPXQLFDWLQJ ZLWK HDFK RWKHU )RU LQVWDQFH LW PD\ EH QHFHVVDU\ WR UHO\ XSRQ IRUPDO PHPRV RU QRWHV FRQWUDULO\ WKHUH PD\ EH QXPHURXV DXWKRUL]HG ZD\V LQFOXGn LQJ PHHWLQJV LQIRUPDO JHWWRJHWKHUV EXOOHWLQ ERDUGV PHPRV HWF :KDW EHVW GHVFULEHV \RXU JURXSn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f" /LPLWHG 0RGHUDWH SULPDULO\ OLPLWHG WR PHPRULHV ([WHQVLYH URRP WR VWRUH DOO SRWHQWLDOO\ XVHIXO GDWD $W WKH SODQW RIILFH OHYHO ZKDW EHVW GHVFULEHV WKH H[LVWLQJ VWRUDJH IDFLOLWLHV IRU SRWHQWLDOO\ XVHIXO GDWD" /LPLWHG 0RGHUDWH SULPDULO\ OLPLWHG WR PHPRULHV ([WHQVLYH URRP WR VWRUH DOO SRWHQWLDOO\ XVHIXO GDWD

PAGE 214

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

PAGE 215

:KDW EHVW GHVFULEHV WKH GHJUHH RI DFFHVV ZKLFK LQGLYLGXDOV RI RWKHU ZRUN JURXSV KDYH WR WKH LQIRUPDWLRQ LQ \RXU JURXSV ILOHV" -/ 5HV WULFWHG ([WHQVLYH DFFHVV OLPLWHG WR IHZ LQGLYLGn XDOV RI RWKHU JURXSV DFFHVV DYDLODEOH WR DOO RWKHU JURXS PHPEHUV :KDW EHVW GHVFULEHV WKH GHJUHH RI DFFHVV ZKLFK LQGLYLGXDOV LQ WKH RUJDQL]DWLRQ KDYH WR WKH LQIRUPDWLRQ LQ WKH SODQW RIILFH ILOHV" 5HVWULFWHG DFFHVV OLPLWHG WR IHZ LQGLYLGXDOV LQ WKH RUJDQL]DWLRQ ([WHQVLYH DFFHVV DYDLODEOH WR DOO RWKHU RUJDQL]DWLRQ PHPEHUV :KHUH WKHUH LV IRUPDO SURYLVLRQ IRU NHHSLQJ RWKHUV LQIRUPHG LQGLYLGXDOV PD\ EH DXWKRUL]HG WR WUDQVPLW LQIRUPDWLRQ WR RWKHU JURXS PHPEHUV DV LW RFFXUV UHDO WLPHf LQ FRQWUDVW WKHUH PD\ EH IRUPDO SURYLVLRQ WR WUDQVn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

PAGE 216

/($'(56+,3 48(67,211$,5( ,QVWUXFWLRQV 7KH IROORZLQJ VL[W\VL[ TXHVWLRQV SHUWDLQ WR \RXU GLUHFW VXSHULRU VXSHUYLVRUf *LYH \RXU LPPHGLDWH ILUVW UHDFWLRQ WR WKH TXHVWLRQ 7KHUH DUH QR ULJKW RU ZURQJ DQVZHUV DQG \RXU ILUVW DQVZHU LV OLNHO\ WR EH WKH EHVW :RUN UDSLGO\ SOHDVH GR QRW RPLW DQ\ TXHVWLRQV DQG PDUN HDFK TXHVWLRQ RQO\ RQFH 'RHV \RXU VXSHUYLVRU HQFRXUDJH JURXS PHPEHUV WR GHYHORS FORVH FRQWDFWV ZLWK KLPVHOI VXFK DV E\ HQFRXUDJLQJ WKHP WR UHO\ XSRQ KLP WR KHOS VROYH MRE SUREOHPV DQG LQ ZRUNLQJ RXW SHUVRQDO SUREOHPVf" 5DUHO\ 6RPHWLPHV 2IWHQ 8VXDOO\ $OPRVW $OZD\V :KDW EHVW GHVFULEHV \RXU VXSHULRUV UHDVRQLQJ VNLOOV DV SHUWDLQLQJ WR ZRUN SUREOHPV" -! 8QV\VWHPDWLF 6\VWHPDWLF 'RHV KH H[HUW SUHVVXUH RQ WKH JURXS WR H[FHHG QRUPDO SHUIRUPDQFH VWDQGDUG XUJLQJ WKHP WR VSHHG XS HPSKDVL]LQJ GHDGOLQHV JLYLQJ SHS WDONV RQ PHHW LQJ FRVW DQG TXDOLW\ EHQFKPDUNV HWFf" 5DUHO\ 6RPHWLPHV 2IWHQ 8VXDOO\ $OPRVW $OZD\V 'RHV \RXU VXSHUYLVRU UHO\ XSRQ UHZDUGV VXFK DV SHUVRQDO UHFRJQLWLRQ UDLVHV SURPRWLRQV DQG SHUVXDVLRQ WR PRWLYDWH PHPEHUV RI \RXU ZRUN JURXS UDWKHU WKDQ RQ RUGHUV DQG WKUHDWV RI SXQLVKPHQWf" $OPRVW $OZD\V 8VXDOO\ 2IWHQ 6RPHWLPHV 6HOGRP :KDW EHVW GHVFULEHV KLV SRLVH" /DFNV FRQILGHQFH &RQILGHQW 'RHV \RXU VXSHUYLVRU SODFH UHVSRQVLELOLW\ RQ WKH JURXS DV D ZKROH WR JHW WKH MRE GRQH VXFK DV ZKHQ JLYLQJ LQVWUXFWLRQV RU DVVLJQLQJ EODPH ZKHQ WKLQJV JR ZURQJf" f $OPRVW $OZD\V 8VXDOO\ 2IWHQ 6RPHWLPHV 5DUHO\ :KDW EHVW GHVFULEHV KLV ZRUN H[SHULHQFH" B /LWWOH &RQVLGHUDEOH

PAGE 217

'RHV KH VXSSRUW LQWHUDFWLRQ DPRQJ ZRUN JURXS PHPEHUV PRUH WKDQ ZLWK KLPVHOI" $OPRVW 8VXDOO\ 2IWHQ 6RPHWLPHV 5DUHO\ DOZD\V 'RHV \RXU VXSHULRU VWDQG XS IRU WKH LQWHUHVW RI \RXU ZRUN JURXS RQ LPn SRUWDQW MRE UHODWHG LVVXHV VXFK DV RYHUWLPH UDLVHV SURPRWLRQV MRE FODVVLILFDWLRQV WUDQVIHUV DQG JHWWLQJ IDLU KHDULQJV RQ JULHYDQFHVf" @ $OPRVW 8VXDOO\ 2IWHQ 6RPHWLPHV 6HOGRP DOZD\V :KDW EHVW GHVFULEHV KLV FRQFHSWXDO VNLOOV DW VROYLQJ ZRUN SUREOHPV" )UHH]HV RQ D VLQJOH DSSURDFK 'HYHORSV $OWHUQDWLYHV 'RHV \RXU VXSHULRU VWDQG XS IRU WKH LQWHUHVWV RI \RXU ZRUN JURXS LQ WU\LQJ WR REWDLQ DGHTXDWH UHVRXUFH VXSSRUW VXFK DV SHUVRQQHO QHZ HTXLSPHQW PDWHULDOV DQG VXSSOLHVf" B $OPRVW 8VXDOO\ 2IWHQ 6RPHWLPHV 6HOGRP DOZD\V 'RHV KH GLVFRXUDJH RSHQ GLVFXVVLRQ RI LVVXHV DQG SUREOHPV VXFK DV E\ OLVWHQLQJ WR RQO\ D VHOHFW IHZ WR GHYHORS DQG H[SDQG WKHLU YLHZVf" 5DUHO\ 6HRPWLPHV 2IWHQ 8VXDOO\ $OPRVW DOZD\V :KDW EHVW GHVFULEHV KLV SHUVRQDOLW\" 7LPLG )RUFHIXO :KDW EHVW GHVFULEHV KLV WHFKQLFDO NQRZKRZ" B ,QFRPSHWHQW &RPSHWHQW 'RHV KH FRQWLQXDOO\ H[SUHVV KLV DSSURYDO RU GLVDSSURYDO E\ FRPSOLPHQWLQJ LQGLYLGXDO DFKLHYHPHQWV DQG FULWLFDOO\ SRLQWLQJ RXW PLVWDNHV" 5DUHO\ 6RPHWLPHV 2IWHQ 8VXDOO\ $W QHDUO\ HYHU\ RSSRU WXQLW\

PAGE 218

:KDW EHVW GHVFULEHV WKH ZD\ LQ ZKLFK KH IRFXVHV RQ SUREOHPV" *HWV LQYROYHG LQ GHWDLOV &HQWHUV RQ PDLQ LVVXHV 'RHV \RXU VXSHUYLVRU DOORZ WKH ZRUN JURXS WR VHW LWV RZQ SHUIRUPDQFH VWDQn GDUGV OHWV WKHP DORQH XQOHVV TXDQWLW\ TXDOLW\ RU FRVW DUH EDGO\ ODJJLQJf" $OPRVW DOZD\V 8VXDOO\ 2IWHQ 6RPHWLPHV 5DUHO\ :KDW EHVW GHVFULEHV KLV HQWKXVLDVP WRZDUG KLV MRE" /RZ +LJK 'RHV KH HQFRXUDJH PDMRULW\ UXOH VXFK DV E\ LQVLVWLQJ WKH PLQRULW\ DELGH E\ WKH PDMRULW\ LQ FDVHV RI GLVSXWHV DQG SRVLWLRQf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

PAGE 219

:KDW EHVW GHVFULEHV \RXU VXSHULRU DQG KLV ZRUN FRPPLWPHQW" +DUGO\ ZRUNV :RUNV KDUG :KHQ \RXU ZRUN JURXS VHHNV D ORRVH HQIRUFHPHQW RI SROLFLHV SURFHGXUHV DQG UXOHV WKDW PDQDJHPHQW DQG VWDII JURXSV ZDQW WLJKWO\ HQIRUFHGf GRHV \RXU VXSHULRU VXSSRUW WKH ZRUN JURXS" $OPRVW DOZD\V 8VXDOO\ 2IWHQ 6RPHWLPHV 6HOGRP 'RHV KH DVN IRU FRPPHQWV DQG VXJJHVWLRQV IURP \RXU ZRUN JURXS RQ MRE UHODWHG PDWWHUV VHWWLQJ JRDOV FKDQJLQJ PHWKRGV VROYLQJ MRE SUREOHPV RU PDNLQJ LPSRUWDQW FKDQJHV LQ WKH ZRUNLQJ DUUDQJHPHQWVf" $OPRVW DOZD\V 8VXDOO\ 2IWHQ 6RPH WLPHV 6HOGRP 7R REWDLQ FRRSHUDWLRQ RI RWKHU VXSHUYLVRUV GRHV \RXU VXSHUYLVRU UHO\ XSRQ SHUVXDVLRQ WUDGLQJ DUUDQJHPHQWV DQG JRRG SHUVRQDO UHODWLRQV UDWKHU WKDQ XSRQ DSSHDOV WR KLJKHU OHYHO VXSHUYLVLRQ RU RWKHU SUHVVXUH PHWKRGVf" $OPRVW 8VXDOO\ 2IWHQ 6RPHWLPHV 6HOGRP DOZD\V :KDW EHVW GHVFULEHV KLP HPRWLRQDOO\" L R (DVLO\ 6HOGRP DURXVHG DURXVHG :KDW EHVW GHVFULEHV KLV SURIHVVLRQDOWHFKQLFDO WUDLQLQJn f L /LPLWHG ([WHQVLYH 'RHV \RXU VXSHUYLVRU WU\ WR SHUVXDGH KLV VXSHULRU DQG VWDII JURXSV WR LVV EURDGO\ VWDWHG SROLFLHV DQG SURFHGXUHV VR DV WR OHDYH IOH[LELOLW\ IRU WKH ZRUN JURXS UDWKHU WKDQ GHWDLOHG LQVWUXFWLRQV WKDW FODULI\ H[DFWO\ ZKDW WKH JURXS LV VXSSRVHG WR GRf" L $OPRVW 8VXDOO\ 2IWHQ 6RPHWLPHV 5DUHO\ DOZD\V

PAGE 220

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f f f 6HHV RQO\ 6HHV RYHUDOO VXESUREOHPV SUREOHP :KDW EHVW GHVFULEHV WKH ZD\ KH DSSURDFKHV MRE UHVSRQVLELOLWLHV" $YRLGV UHVSRQVLELOLW\ B 6HHNV UHVSRQVLELOLW\ :KHQ \RX GLVFXVV ZRUN SUREOHPV ZLWK \RXU VXSHULRU ZKDW EHVW GHVFULEHV WKH VLWXDWLRQ" +H XQGHUVWDQGV ZLWK GLIILFXOW\ +H XQGHUVWDQGV HDVLO\

PAGE 221

:KHUH WKHUH LV VRPH IUHHGRP GRHV KH DVVXPH D IOH[LEOH SRVLWLRQ RQ PRYLQJ EXGJHWHG IXQGV IURP RQH JURXS" FDWHJRU\ WR DQRWKHU ZKHQ LW ZRXOG KHOS WKH RYHUDOO $OPRVW DOZD\V 8VXDOO\ 2IWHQ 6RPHWLPHV 6HOGRP 'RHV KH PDLQWDLQ WLJKW FRQWURO RYHU RIILFH UHVRXUFHV VXFK DV RQ WKH XVH RI VXSSOLHV SHUVRQQHO RU HTXLSPHQWf WR LQVXUH WKH\ DUH XVHG RQO\ IRU DXWKRUL]HG SXUSRVHV" 6HOGRP 6RPHWLPHV 2IWHQ 8VXDOO\ $OPRVW DOZD\V 'RHV KH WU\ WR PHHW ZLWK RWKHU VXSHUYLVRUV WR ZRUN RQ FRPPRQ SUREOHPV" $OPRVW DOZD\V 8VXDOO\ 2IWHQ 6RPHWLPHV 5DUHO\ ,Q IDFHWRIDFH FRQWDFW ZLWK \RXU VXSHULRU ZKDW EHVW GHVFULEHV KLV FRPn PXQLFDWLQJ VNLOO" 9DJXH DQG ZDQGHULQJ &OHDU DQG FRQFLVH 'RHV KH GLVFLSOLQH LQ SHUVRQDO WHUPV VXFK DV GHFODULQJ WKDW LQGLYLGXDOV ODFN DELOLW\ DUH VORZ FOXPV\ RU LQFRPSHWHQWf" 5DUHO\ 6RPHWLPHV 2I WHQ 8VXDOO\ $OPRV W DOZD\V 'RHV KH GLVFLSOLQH E\ IRFXVLQJ RQ HOHPHQWV RI WKH MRE VXFK DV SRLQWLQJ XS DUHDV RI SRRU SHUIRUPDQFH DQG VHWWLQJ JRDOV DQG SODQV IRU FRUUHFWLRQf" $OPRVW DOZD\V 8VXDOO\ 2IWHQ 6RPHWLPHV 5DUHO\ 'RHV \RXU VXSHUYLVRU PDNH SHUVRQQHO GHFLVLRQV KLULQJ QHZ VWDII SURPRWLQJ SHUVRQQHO RU DGRSWLQJ QHZ SHUVRQQHO SROLFLHV DQG SURJUDPVf ZLWKRXW DVNLQJ IRU DGYLFH DQG FRPPHQWV RI \RXU ZRUN JURXS" 5DUHO\ 6RPHWLPHV 2IWHQ 8VXDOO\ $OPRVW DOZD\V

PAGE 222

,Q GLVFLSOLQLQJ GRHV KH GLVFXVV VXERUGLQDWHG EHKDYLRU DQG SHUIRUPDQFH LQ SULYDWH UDWKHU WKDQ LQ IURQW RI IHOORZ ZRUNHUV DQG RWKHUVf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n DOO\ KH ZLOO VXEVWLWXWH KLV MXGJPHQW IRU WKHLUV DQG RUGHU WKHP WR LPSOHn PHQW KLV DSSURDFK $GDSWLYHKLV VXJJHVWLRQV DQG FRPPHQWV FRPSOHPHQW WKH SUREOHP VROYLQJ DSn SURDFK DQG IORZ RI DFWLYLWLHV EHLQJ FDUULHG RQ E\ LQGLYLGXDOV RU JURXS DV D ZKROH WKDW LV KH GRHVQnW LPSRVH GLIIHUHQW LGHDV DQG DSSURDFKHV RQ WKH JURXSf :KHQ KH PXVW GHFLGH EHWZHHQ VXSSRUWLQJ KLJKHU PDQDJHPHQW RU KLV ZRUN JURXS GRHV KH JR DORQJ ZLWK PDQDJHPHQW VXFK DV E\ DOORZLQJ KLV GHFLVLRQV WR EH RYHUUXOHG ZLWKRXW SURWHVWf" A A A r ‘ ‘ ‘ PP P P ‘ ‘ ‘ A ‘ ‘ ‘ r n A n PPA ‘ n ‘ A ‘ A A PP P ‘ ‘ A PP A P P P P r PP P P P PP ‘ m A f§ f§ f§ f§ 0 $OPRVW DOZD\V 8VXDOO\ 2IWHQ 6RPHWLPHV 6HOGRP

PAGE 223

,V \RXU VXSHUYLVRU OD[ LQ HQIRUFLQJ SROLFLHV SURFHGXUHV DQG UXOHV RQ WKH ZRUN JURXS" $OPRV W DOZD\V 8VXDOO\ 2IWHQ 6RPHWLPHV 5DUHO\ ,Q GHDOLQJ ZLWK KLV VXSHULRU RWKHU VXSHUYLVRUV RU VWDII JURXSV LV WKH HPSKDVLV RI \RXU VXSHUYLVRU RQ REVHUYLQJ WKH UHVWULFWLRQV RI SROLFLHV SURFHGXUHV DQG UXOHV" 5DUHO\ 6RPHWLPHV 2IWHQ 8VXDOO\ $OPRVW DOZD\V ,V \RXU VXSHUYLVRUnV VW\OH WR UHTXHVW DVVLVWDQFH DVN IRU KHOS DQG JLYH VXJJHVWLRQV VXFK DV :RXOG \RX GR WKLV RU :K\ GRQnW \RX ORRN DW WKH SUREO HP DQRWKHU ZD\ f" $OPRVW DOZD\V 8VXDOO\ 2IWHQ 6RPHWLPHV 5DUHO\ 'RHV KH HPSKDVL]H LQWHUJURXS JRDOV RYHU JURXS JRDOV ZKHQ GHDOLQJ ZLWK KLV VXSHULRU RWKHU SDUDOOHO VXSHUYLVRUV RU VWDII SHUVRQQHO VXFK DV SXVKLQJ IRU ZKDW LV JRRG IRU WKH RUJDQL]DWLRQ UDWKHU WKDQ MXVW IRU KLV RZQ JURXSf L 5DUHO\ 6RPHWLPHV 2IWHQ 8VXDOO\ $OPRVW DOZD\V :KDW EHVW GHVFULEHV KLV DSSURDFK WR ZRUN SUREO HPV" 8QLPDJLQDWLYH ,PDJLQDWLYH ,Q GHDOLQJ ZLWK KLV VXSHULRU DQG VWDII JURXSV GRHV \RXU VXSHUYLVRU WU\ WR SHUVXDGH WKHP WR HPSKDVL]H UHZDUGV VXFK DV OLEHUDO SURPRWLRQV DQG UDLVHVf WR PRWLYDWH ZRUN JURXSV" B $OPRVW 8VXDOO\ 2IWHQ 6RPHWLPHV 5DUHO\ $OZD\V :KHQ WKH LQWHUHVWV RI RWKHU ZRUN JURXSV DQG \RXU JURXS DUH LQ FRQIOLFW GRHV \RXU VXSHUYLVRU UHVSRQG WR WKH SUHVVXUHV RI WKH RWKHU JURXS" 6HOGRP 6RPHWLPHV 2IWHQ 8VXDOO\ $OPRVW DOZD\V

PAGE 224

'RHV KH WU\ WR EXLOG XS WKH JURXSnV LPDJH LQ GHDOLQJ ZLWK PDQDJHPHQW DQG VWDII VXFK DV NHHSLQJ WKHP LQIRUPHG RQ ZKDW WKH JURXS LV GRLQJ VRXQGQHVV RI LWV SURJUDP DQG FRPSHWHQFH RI LWV SHUVRQQHOf" $OPRVW DOZD\V 8VXDOO\ 2IWHQ 6RPHWLPHV 6HOGRP 'RHV KH DVN IRU DGYLFH DQG FRPPHQWV RI RWKHUV KLV VXSHULRU UHOHYDQW VWDII SHUVRQQHO RU VXSHUYLVRUV RI RWKHU ZRUN JURXSVf RQ LVVXHV DQG SUREOHPV RQ ZKLFK WKH\ DUH OLNHO\ WR EH FRQFHUQHG" $OPRVW DOZD\V 8VXDOO\ 2IWHQ 6RPHWLPHV 5DUHO\ +RZ GRHV \RXU VXSHULRU KDQGOH FULWLFLVP WKDW LV GLUHFWHG DW KLP" 5HMHFWV DQG GHIHQGV $FFHSWV DQG HYDOXDWHV :KDW EHVW GHVFULEHV KLV DFWLRQV" ,QFRQVLVWHQW &RQVLVWHQW 'RHV \RXU VXSHUYLVRU WDNH D FDQ LPSHGH JHWWLQJ WKH MRE GRQH DQG DSSURDFK DQG TXRWH WKH SROLFLHV GR LW DSSURDFK ZKHQ SROLFLHV RU UXOHV ILQG D ZD\ UDWKHU WKDQ D FDQQRW GR LW RU UXOHV WKDW SUHYHQW DFWLRQf" $OPRVW DOZD\V 8VXDOO\ 2IWHQ 6RPHWLPHV 5DUHO\ :KDW GHVFULEHV KLV DSSURDFK WR SUREOHPV" (DFK SUREOHP LV KDQGOHG LQGLYLGXDOO\ 6LPLODU SUREn OHPV DUH KDQGOHG WR JH WKHU 'RHV \RXU VXSHUYLVRU HQFRXUDJH JURXS PHPEHUV WR PHHW WRJHWKHU DQG ZLWK RWKHU ZRUN JURXSV RQ WKH MRE WR ZRUN RXW FRPPRQ SUREOHPV" $OPRVW DOZD\V 8VXDOO\ 2IWHQ 6RPHWLPHV 5DUHO\

PAGE 225

:KDW EHVW GHVFULEHV \RXU VXSHULRUnV DSSURDFK WR KLV MRE" 'HDOV ZLWK SUREOHPV DV WKH\ RFFXU /RRNV DKHDG f f WR DQWLFLn SDWH SUREOHPV 'RHV KH HPSKDVL]H WKH QHHG IRU JURXS PHPEHUV WR UHJXODUO\ HYDOXDWH HDFK RWKHUfV SURJUHVV ZKLOH VKDUSO\ UHVWULFWLQJ KLV RZQ HYDOXDWLRQVf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

PAGE 226

'RHV KH HPSKDVL]H WKH QHHG RI KLV VXSHULRU DQG VWDII JURXSV WR HVWDEOLVK KLJK VWDQGDUGV IRU KLV DQG RWKHU XQLWV" 5DUHO\ 6RPH WLPHV 2IWHQ 8VXDOO\ $OPRVW DOZD\V :KDW EHVW GHVFULEHV \RXU VXSHULRU" L *LYHV XS ZKHQ IDFHG ZLWK GLIILFXOWLHV :RUNV XQWLO SUREOHPV DUH VROYHG 'RHV \RXU VXSHUYLVRU HPSKDVL]H DQG HQIRUFH IRUPDO SROLFLHV SURFHGXUHV DQG UXOHV RQ WKH ZRUN JURXS" 5DUHO\ 6RPHWLPHV 2IWHQ 8VXDOO\ $OPRVW DOZD\V (1' 2) /($'(56+,3 48(67,211$,5(

PAGE 227

25*$1,=$7,21$/ %(+$9,25 48(67,211$,5( ,QVWUXFWLRQV 7KH IROORZLQJ WKLUW\WKUHH TXHVWLRQV SHUWDLQ WR \RXU SODQW DQG ZKDW H[LVWV QRZ $V LQ WKH SUHYLRXV OHDGHUVKLS TXHVWLRQQDLUH JLYH \RXU ILUVW UHDFWLRQ ZRUN UDSLGO\ GR QRW RPLW DQ\ TXHVWLRQV DQG PDUN HDFK TXHVWLRQ RQO\ RQFH f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

PAGE 228

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n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

PAGE 229

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

PAGE 230

,V WKHUH FRRSHUDWLRQ DQG VHQVH RI EHLQJ D SDUW RI D WHDP EHWZHHQ VXSHUn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f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

PAGE 231

'R HPSOR\HHV GR D IXOO GD\nV ZRUN" )RU H[DPSOH GR WKH\ WU\ WR PHHW RU H[FHHG HVWDEOLVKHG ZRUN VWDQGDUGV" f§ / 0 Q ‘ U a 7 U U f§ f§ f§ f§ f§ f§ ‘ ‘ ‘ f§ ‘ 5DUHO\ 6RPHWLPHV 2IWHQ 8VXDOO\ $OPRVW DOZD\V ,V LPSRUWDQW MRE UHODWHG LQIRUPDWLRQ UHVWULFWHG VFUHHQHG RU EORFNHG EHWZHHQ \RXU JURXS DQG RWKHU JURXSV" )RU H[DPSOH LV WKHUH GLUHFW ZLWKKROGLQJ RI LPSRUWDQW LQIRUPDWLRQ" $OPRVW 8VXDOO\ 2IWHQ 6RPHWLPHV 5DUHO\ DOZD\V ,V WKHUH GLVFXVVLRQ ZLWKLQ \RXU ZRUN JURXS RQ MRE UHODWHG VXEMHFWV" )RU H[DPSOH GR PHPEHUV FRQWULEXWH LGHDV RQ SRVVLEOH VROXWLRQV WR FRPPRQ MRE SUREOHPV" f§ % P f§ f§ f§ f§ f§ U 7 ‘ f§ L U A f§ f§ f§ f§ B f§ f§ f§ m f§ ‘ A f§ J f§ U A 5DUHO\ 6RPHWLPHV 2IWHQ 8VXDOO\ $OPRVW DOZD\V ,V WKHUH GLVFXVVLRQ EHWZHHQ \RXU ZRUN JURXS DQG RWKHU JURXSV RQ QRQMRE UHODWHG WRLSFV VXFK DV SROLWLFV VSRUWV HWF" 5DUHO\ 6RPHWLPHV 2IWHQ 8VXDOO\ $OPRVW DOZD\V ,V WKHUH FRRSHUDWLRQ DQG WHDPZRUN EHWZHHQ \RXU ZRUN JURXS DQG RWKHU JURXSV" )RU H[DPSOH LV VSRQWDQHRXV DQG UHDG\ DVVLVWDQFH JLYHQ ZLWKRXW EHLQJ DVNHG" 5DUHO\ 6RPHWLPHV 2IWHQ 8VXDOO\ $OPRVW DOZD\V (1' 2) %(+$9,25$/ 48(67,211$,5(

PAGE 232

$33(1',; % .(< 72 7+( /($'(56+,3 48(67,211$,5( :,7+ +($',1*6 $''(' $1' 1215$1'20,=(' 9DULDEOH 4XHVWLRQQDLUH ,WHP 1XPEHUV 5HSUHVHQWDWLRQ ,QWHUDFWLRQ 6WDQGDUGV *RDO (PSKDVHV 3DUWLFLSDWLRQ f 'LUHFWLRQ f 5XOH 2ULHQWDWLRQ f 0RWLYDWLRQ 7HFKQLFDO 4XDOLILFDWLRQV $FWLRQ 2ULHQWDWLRQ 3UREOHP 6NLOOV 3HUVRQDO $ELOLWLHV DQG 2ULHQWDWLRQ

PAGE 233

$33(1',; & .(< 72 7+( %(+$9,25$/ 48(67,211$,5( :,7+ +($',1*6 $''(' $1' 1215$1'20,=(' 9DULDEOH 4XHVWLRQQDLUH ,WHP 1XPEHU ,QGLYLGXDO %HKDYLRU -RE ,QYROYHPHQW &RPPLWPHQW WR 0HHWLQJ 6WDQGDUGV ,QLWLDWLYH 6HOIn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

PAGE 234

$33(1',; 35,0$5< $1' 0(',$7,1* 6758&785$/ /($'(56+,3 $1' %(+$9,25$/ 352),/(6 2) 3/$17 $

PAGE 235

6LPSOH &RPSOH[ 3ULPDU\ 6WUXFWXUDO 9DULDEOHV 6L]H :RUN )ORZ ,QWUDJURXS 6S7 )DFWRUV ,QWUDJURXS :RUN 'HPDQGV +HXULVWLFV 0HGLDWLQJ 6WUXFWXUDO 9DULDEOHV )RUPDO $XWKRULW\ 5HODWLRQVKLSV &RQWURO 6\VWHPV ,QIRUPDWLRQ 6\VWHP ,QWUDJURXS 6PDOO 1RQLQWHJUDWHG &RQFHQWUDWHG 6WDEOH 3UHGLFW /DUJH ,QWHJUDWHG 'LVSHUVHG 8QVWDEOH UHGLFWDEOH L I I X VH ,QVWLWXWLRQDO 6LPSOH 6SHFLILF )LJ 3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO 9DULDEOH 3URILOH :RUN *URXS 3ODQW $

PAGE 236

6LPOH &RPSOH[ 3ULPDU\ 6WUXFWXUDO 9DULDEOHV 6L]H :RUN )ORZ ,QWUDJURXS 637 )DFWRUV ,QWUDJURXS :RUN 'HPDQGV +HXULVWLFV 0HGLDWLQJ 6WUXFWXUDO 9DULDEOHV )RUPDO $XWKRULW\ 5HODWLRQVKLSV &RQWURO 6\VWHPV ,QIRUPDWLRQ 6\VWHP ,QWUDJURXS )LJ 3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO 9DULDEOH 3URILOH :RUN *URXS 3ODQW $

PAGE 237

3ULPDU\ 6WUXFWXUDO 9DULDEOHV 6L]H :RUN )ORZ ,QWUDJURXS 637 )DFWRUV ,QWUDJURXS :RUN 'HPDQGV +HXULVWLFV 0HGLDWLQJ 6WUXFWXUDO 9DULDEOHV )RUPDO $XWKRULW\ 5HODWLRQVKLSV &RQWURO 6\VWHPV ,QIRUPDWLRQ 6\VWHP ,QWUDJURXS 6LPSOH &RPSOH[ n )LJ 3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO 9DULDEOH 3URILOH :RUN *URXS 3ODQW $

PAGE 238

6LPSOH &RPSOH[ 3ULPDU\ 6WUXFWXUDO 9DULDEOHV 6L]H 6PDOO /DUJH :RUN )ORZ ,QWUDJURXS 1RQLQWHJUDWHG ,QWHJUDWHG 6S7 )DFWRUV ,QWUDJURXS &RQFHQWUDWHG 'LVSHUVHG :RUN 'HPDQGV 6WDEOH f§ ‘ 8QVWDEOH +HXULVWLFV 3UQLL UW aLE Q aa 8QSUHGLFWDEOH 0HGLDWLQJ 6WUXFWXUDO 9DULDEOHV )RUPDO $XWKRULW\ 5HODWLRQVKLSV 'LIIXVH 6SHFLILF &RQWURO 6\VWHPV ,QVWLWXWLRQDO ,QGLYLGXDO ,QIRUPDWLRQ 6\VWHP ,QWUDJURXS 6LPSOH &RPSOH[ )LJ 3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO 9DULDEOH 3URILOH :RUN *URXS 3ODQW $

PAGE 239

&RPSOH[ 3ULPDU\ 6WUXFWXUDO 9DULDEOHV 6L]H :RUN )ORZ ,QWUDJURXS 6S7 )DFWRUV ,QWUDJURXS :RUN 'HPDQGV +HXULVWLFV 0HGLDWLQJ 6WUXFWXUDO 9DULDEOHV )RUPDO $XWKRULW\ 5HODWLRQVKLSV &RQWURO 6\VWHPV ,QIRUPDWLRQ 6\VWHP ,QWUDJURXS 6LPSOH 3UHGLFWDEOH 8QSUHGLFWDEOH 7 a )LJ 3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO 9DULDEOH 3URILOH :RUN *URXS 3ODQW $

PAGE 240

6LPSOH &RPSOH[ 3ULPDU\ 6WUXFWXUDO 9DULDEOHV 6L]H :RUN )ORZ ,QWUDJURXS 637 )DFWRUV ,QWUDJURXS :RUN 'HPDQGV +HXULVWLFV 0HGLDWLQJ 6WUXFWXUDO 9DULDEOHV )RUPDO $XWKRULW\ 5HODWLRQVKLSV &RQWURO 6\VWHPV ,QIRUPDWLRQ 6\VWHP ,QWUDJURXS )LJ 3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO 9DULDEOH 3URILOH :RUN *URXS 3ODQW $

PAGE 241

6LPSOH &RPSOH[ 3ULPDU\ 6WUXFWXUDO 9DULDEOHV 6L]H :RUN )ORZ ,QWUDJURXS 637 )DFWRUV ,QWUDJURXS :RUN 'HPDQGV +HXULVWLFV 0HGLDWLQJ 6WUXFWXUDO 9DULDEOHV )RUPDO $XWKRULW\ 5HODWLRQVKLSV &RQWURO 6\VWHPV ,QIRUPDWLRQ 6\VWHP ,QWUDJURXS )LJ 3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO 9DULDEOH 3URILOH :RUN *URXS 3ODQW $

PAGE 242

6LPSOH &RPSOH[ 3ULPDU\ 6WUXFWXUDO 9DULDEOHV 6L]H :RUN )ORZ ,QWUDJURXS 637 )DFWRUV ,QWUDJURXS :RUN 'HPDQGV +HXULVWLFV 0HGLDWLQJ 6WUXFWXUDO 9DULDEOHV )RUPDO $XWKRULW\ 5HODWLRQVKLSV &RQWURO 6\VWHPV ,QIRUPDWLRQ 6\VWHP ,QWUDJURXS )LJf 3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO 9DULDEOH 3URILOH :RUN *URXS 3ODQW $

PAGE 243

'HPRFUDWLF *HQHUDO $XWRFUDWLF /HDGHUVKLS )XQFWLRQV 5HSUHVHQWDWLRQ 8SZDUG 'RZQZDUG ,QWHUDFWLRQ /DWHUDO ? 9HUWLFDO 6WDQGDUGV /RZ +LJK *RDO (PSKDVLV *URXS ,QGLYLGXDO 3DUWLFLSDWLRQ ([WHQVLYH 5HVWULFWLYH 'LUHFWLRQ /DLVVH] )DLUH &ORVH 5XOH 2ULHQWDWLRQ -XGJPHQWDO 6WULFW 0RWLYDWLRQ 5HZDUGV 3HQDOWLHV 0LVFHOODQHRXV 'LPHQVLRQV /RZ &RPSHWHQF\ 0RGHUDWH +LJK &RPSHWHQF\ 7HFKQLFDO 4XDOLILFDWLRQV /LPLWHG ([WHQVLYH $FWLRQ 2ULHQWDWLRQ 3DVVLYH $FWLYH 3UREOHP 6NLOOV /LPLWHG ArrA ([WHQVLYH 3HUVRQDO $ELOLWLHV 1HJDWLYH ? 3RVLWLYH )LJ 3ODQW 0DQDJHUrV /HDGHUVKLS 3URILOH 3ODQW $

PAGE 244

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

PAGE 245

'HPRFUDWLF *HQHUDO $XWRFUDWLF /HDGHUVKLS )XQFWLRQV 5HSUHVHQWDWLRQ 8SZDUG 'RZQZDUG ,QWHUDFWLRQ /DWHUDO 9HUWLFDO 6WDQGDUGV /RZ +LJK *RDO (PSKDVLV *URXS ; ,QGLYLGXDO 3DUWLFLSDWLRQ ([WHQVLYH trrrr 5HVWULFWLYH 'LUHFWLRQ /DLVVH] )DLUH &ORVH 5XOH 2ULHQWDWLRQ -XGJPHQWDO 6WULFW 0RWLYDWLRQ 5HZDUGV 3HQDOWLHV 0LVFHOODQHRXV 'LPHQVLRQV /RZ &RPSHWHQF\ 0RGHUDWH +LJK &RPSHWHQF\ 7HFKQLFDO 4XDOLILFDWLRQV /LPLWHG ([WHQVLYH $FWLRQ 2ULHQWDWLRQ 3DVVLYH ? $FWLYH 3UREOHP 6NLOOV /LPLWHG ([WHQVLYH 3HUVRQDO $ELOLWLHV f 1HJDWLYH 3RVLWLYH )LJ 6HFRQG /HYHO 6XSHUYLVRUnV /HDGHUVKLS 3URILOH :RUN *URXS 3ODQW $

PAGE 246

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nV /HDGHUVKLS 3URILOH :RUN *URXS 3ODQW $

PAGE 247

'HPRFUDWLF *HQHUDO $XWRFUDWLF /HDGHUVKLS )XQFWLRQV 5HSUHVHQWDWLRQ ,QWHUDFWLRQ 6WDQGDUGV *RDO (PSKDVLV 3DUWLFLSDWLRQ 'LUHFWLRQ 5XOH 2ULHQWDWLRQ 0RWLYDWLRQ 0LVFHOODQHRXV 'LPHQVLRQV 7HFKQLFDO 4XDOLILFDWLRQV $FWLRQ 2ULHQWDWLRQ 3UREOHP 6NLOOV 3HUVRQDO $ELOLWLHV 8SZDUG /DWHUDO /RZ *URXS ([WHQVLYH /DLVVH] )DLUH -XGJPHQWDO 5HZDUGV 'RZQZDUG /RZ &RPSHWHQF\ 0RGHUDWH +LJK &RPSHWHQF\ /LPLWHG ([WHQVLYH )LJ 6HFRQG /HYHO 6XSHUYLVRUfV /HDGHUVKLS 3URILOH :RUN *URXS 3ODQW $

PAGE 248

'HPRFUDWLF *HQHUDO $XWRFUDWLF /HDGHUVKLS )XQFWLRQV 5HSUHVHQWDWLRQ 8SZDUG 'RZQZDUG ,QWHUDFWLRQ /DWHUDO 9HUWLFDO 6WDQGDUGV /RZ KLJK *RDO (PSKDVLV *URXS ,QGLYLGXDO 3DUWLFLSDWLRQ ([WHQVLYH r 5HVWULFWLYH 'LUHFWLRQ /DLVVH] )DLUH &ORVH 5XOH 2ULHQWDWLRQ -XGJPHQWDO 6WULFW 0RWLYDWLRQ 5HZDUGV B 3HQDOWLHV /RZ &RPSHWHQF\ 0RGHUDWH KLJK &RPSHWHQF\ 0LVFHOODQHRXV 'LPHQVLRQV 7HFKQLFDO 4XDOLILFDWLRQV /LPLWHG ([WHQVLYH $FWLRQ 2ULHQWDWLRQ 3DVVLYH $FWLYH 3UREOHP 6NLOOV /LPLWHG ([WHQVLYH 3HUVRQDO $ELOLWLHV 1HJDWLYH 3RVLWLYH )LJ 6HFRQG /HYHO 6XSHUYLVRUHV /HDGHUVKLS 3URILOH :RUN *URXS 3ODQW $

PAGE 249

'HPRFUDWLF *HQHUDO $XWRFUDWLF /HDGHUVKLS )XQFWLRQV 5HSUHVHQWDWLRQ ,QWHUDFWLRQ 6WDQGDUGV *RDO (PSKDVLV 3DUWLFLSDWLRQ 'LUHFWLRQ 5XOH 2ULHQWDWLRQ 0RWLYDWLRQ 0LVFHOODQHRXV 'LPHQVLRQV 7HFKQLFDO 4XDOLILFDWLRQV $FWLRQ 2ULHQWDWLRQ 3UREOHP 6NLOOV 3HUVRQDO $ELOLWLHV 8SZDUG 'RZQZDUG /RZ &RPSHWHQF\ 0RGHUDWH +LJK &RPSHWHQF\ /LPLWHG ([WHQVLYH )LJ 6HFRQG /HYHO 6XSHUYLVRUnV /HDGHUVKLS 3URILOH :RUN *URXS 3ODQW $

PAGE 250

'HPRFUDWLF *HQHUDO $XWRFUDWLF /HDGHUVKLS )XQFWLRQV 5HSUHVHQWDW LRQ 8SZDUG 'RZQZDUG ,QWHUDFWLRQ /DWHUDO 9HUWLFDO 6WDQGDUGV /RZ ArrnrrfrAA +LJK *RDO (PSKDVLV *URXS ,QGLYLGXDO 3DUWLFLSDWLRQ ([WHQVLYH 5HVWULFWLYH 'LUHFWLRQ /DLVVH] )DLUH a &ORVH 5XOH 2ULHQWDWLRQ -XGJPHQWDO 6WULFW 0RWLYDWLRQ 5HZDUGV 3HQDOWLHV /RZ &RPSHWHQF\ 0RGHUDWH +LJK &RPSHWHQF\ 0LVFHOODQHRXV 'LPHQVLRQV 7HFKQLFDO 4XDOLILFDWLRQV /LPLWHG ([WHQVLYH $FWLRQ 2ULHQWDWLRQ 3DVVLYH AAAAA$FWLYH 3UREOHP 6NLOOV /LPLWHG ([WHQVLYH 3HUVRQDO $ELOLWLHV V 1HJDWLYH n 3RVLWLYH )LJ 6HFRQG /HYHO 6XSHUYLVRUV /HDGHUVKLS 3URILOH :RUN *URXS 3ODQW $

PAGE 251

'HPRFUDWLF *HQHUDO $XWRFUDWLF /HDGHUVKLS )XQFWLRQV 5HSUHVHQWDWLRQ 8SZDUG 'RZQZDUG ,QWHUDFWLRQ /DWHUDO 9HUWLFDO 6WDQGDUGV /RZ +LJK *RDO (PSKDVLV *URXS ,QGLYLGXDO f3DUWLFLSDWLRQ ([WHQVLYH 6 5HVWULFWLYH 'LUHFWLRQ /DLVVH] )DLUH &ORVH 5XOH 2ULHQWDWLRQ -XGJPHQWDO AWrrrArA 6WULFW 0RWLYDWLRQ 5HZDUGV 3HQDOWLHV 0LVFHOODQHRXV 'LPHQVLRQV /RZ &RPSHWHQF\ 0RGHUDWH +LJK &RPSHWHQF\ 7HFKQLFDO 4XDOLILFDWLRQV /LPLWHG B ([WHQVLYH $FWLRQ 2ULHQWDWLRQ 3DVVLYH $FWLYH 3UREOHP 6NLOOV /LPLWHG ([WHQVLYH 3HUVRQDO $ELOLWLHV 1HJDWLYH 3RVLWLYH )LJ 6HFRQG /HYHO 6XSHUYLVRUA /HDGHUVKLS 3URILOH :RUN *URXS 3ODQW $

PAGE 252

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

PAGE 253

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b )LJr &RQWLQXHG

PAGE 254

,QGLYLGXDO %HKDYLRU -RE ,QYROYHPHQW &RPPLWPHQW WR 0HHWLQJ 6WDQGDUGV ,QLWLDWLYH 6HOI,PSURYHPHQW :RUN*RDO &RPPLWPHQW )UXVWUDWLRQ /HYHOV 6HQVH RI $FKLHYHPHQW $EVHQWHHLVP 7XUQRYHU 1HJDWLYH /RZ 5DUHO\ /LWWOH /LWWOH 5DUHO\ $OPRVW DOZD\V 5DUHO\ $OPRVW DOZD\V $OPRVW DOZD\V $ *HQHUDO 3RVLWLYH +LJK $OPRVW DOZD\V +LJK +LJK $OPRVW DOZD\V ODUHO\ $OPRVW DOZD\V 5DUHO\ ,QWUDJURXS %HKDYLRU /DWHUDO ‘ ‘‘‘ f§ ‘ ‘ ‘ ‘‘ LSf§ &RQILGHQFH DQG 7UXVW -RE 5HODWHG &RPPXQLFDWLRQ 1RQ-RE 5HODWHG &RPPXQLFDWLRQ &RRSHUDWLRQ 3DWWHUQV *URXS 8QLW\ ,QWHUDFWLRQ RII WKH -RE 1HJDWLYH *HQHUDO 3RVLWLYH 5DUHO\ 5DUHO\ $OPRVW DOZD\V )LJ %HKDYLRUDO 3URILOH RI (PSOR\HHV 6XSHUYLVRU 5HVSRQVH :RUN *URXS 3ODQW $ $

PAGE 255

1HJDWLYH *HQHUDO 3RVLWLYH ,QWUDJURXS %HKDYLRU 9HUWLFDO 7UXVW DQG &RQILGHQFH 'RZQZDUG 7UXVW DQG &RQILGHQFH 8SZDUG 5HTXHVWHG ,QIRUPDWLRQ &RPPXQLFDWLRQ 6FUHHQLQJ -RE ,QIRUPDWLRQ +XPDQ 5HODWLRQV ,QIRUPDWLRQ &RRSHUDWLRQ DQG 7HDPZRUN $FFHSWDQFH RI 6XSHUYLVRU 'HFLVLRQV $FFHSWDQFH RI +LJKHU /HYHO 'HFLVLRQV $FFHSWDQFH RI 6WDII 'HFLVLRQV 5DUHO 5DUHO\ 5DUHO\ $OPRVW DOZD $OPRVW DOZD $OPRVW DOZD\V $OPRVW DOZD\V 5DUHO5DUHO\ $OPRVW DOZD\LI 5DUHO\ $OPR VWAcU"6\V 5DUHO\ APW7VW DOZD\V 5DUHO\ 9HU\ RIWHQ 5DUHO\ O 9HU\ RIWHQ 5DUHO\ fD ,QWHUJURXS %HKDYLRU &RQILGHQFH DQG 7UXVW &RPPXQLFDWLRQV $FFXUDF\ &RPPXQLFDWLRQV 6FUHHQLQJ ,QIRUPDO &RPPXQLFDWLRQV &RRSHUDWLRQ DQG 7HDPZRUN 7HDP 6SLULW $FFHSWDQFH RI 'HFLVLRQV ,QWHUDFWLRQ 3DWWHUQV 1HJDWLYH *HQHUDO 3RVLWLYH 5DUHO\ 5DUHO\ $OPRVW DOZD\V 5DUHO\ 5DUHO\ 5DUHO\ 5DUHO\ 5DUH@ \ $OPRVW DOZD\V $OPRVW DOZD\V )LJ f&RQWLQXHG

PAGE 256

,QGLYLGXDO %HKDYLRU -RE ,QYROYHPHQW &RPPLWPHQW WR 0HHWLQJ 6WDQGDUGV ,QLWLDWLYH 6HOI,PSURYHPHQW :RUN*RDO &RPPLWPHQW )UXVWUDWLRQ /HYHOV 6HQVH RI $FKLHYHPHQW $EVHQWHHLVP 7XUQRYHU 1HJDWLYH *HQHUDO 3RVLWLYH /RZ /LWWOH /LWWOS nI+} Y r 5DUHO\ $OPRVW DOZD 5DUHO\ $OPRVW DOZD\V $OPRVW DOZD\ +LJK $OPRVWB DOZD\V +LJK +LJK PR VW DOZD\V 5DUHO\ $OPRVW DOZD\V 5DUHO\ ,QWUDJURXS %HKDYLRU /DWHUDO &RQILGHQFH DQG 7UXVW -RE 5HODWHG &RPPXQLFDWLRQ 1RQ-RE 5HODWHG &RPPXQLFDWLRQ &RRSHUDWLRQ 3DWWHUQV *URXS 8QLW\ ,QWHUDFWLRQ RII WKH -RE 1HJDWLYH *HQHUDO 3RVLWLYH 5DUHO\ $OPRVW DOZD\V )LJ %HKDYLRUDO 3URILOH RI (PSOR\HHV 6XSHUYLVRU 5HVSRQVH :RUN *URXS 3ODQW $

PAGE 257

1HJDWLYH *HQHUDO 3RVLWLYH ,QWUDJURXS %HKDYLRU 9HUWLFDO 7UXVW DQG &RQILGHQFH 'RZQZDUG 5DUH 7UXVW DQG &RQILGHQFH 8SZDUG 5DUHO\ 5HTXHVWHG ,QIRUPDWLRQ 5DUHO\ &RPPXQLFDWLRQ 6FUHHQLQJ $OPRVW DOZD\V -RE ,QIRUPDWLRQ 5DUHO\ +XPDQ 5HODWLRQV ,QIRUPDWLRQ 5DUHO\ &RRSHUDWLRQ DQG 7HDPZRUN r 5Df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

PAGE 258

,QGLYLGXDO %HKDYLRU -RE ,QYROYHPHQW &RPPLWPHQW WR 0HHWLQJ 6WDQGDUGV ,QLWLDWLYH 6HOI f§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

PAGE 259

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

PAGE 260

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

PAGE 261

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

PAGE 262

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r!Y Z / f67Z£\V 5DUHO\ fD-/ZD\ V 5DUHOY $OPRVW DOZD\M ZDYV )LJR %HKDYLRUDO 3URILOH RI (PSOR\HHV 6XSHUYLVRU 5HVSRQVH :RUN *URXS 3ODQW $

PAGE 263

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nW7+U7nW DOZD\V 5DUHO\ 5DUHO\ 5DUHO\ 5DUHO\ $OPRVW DOZD\V ZD D\V VW )LJ &RQWLQXHG

PAGE 264

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

PAGE 265

1HJDWLYH *HQHUDO 3RVLWLYH ,QWUDJURXS %HKDYLRU 9HUWLFDO 7UXVW DQG &RQILGHQFH 'RZQZDUG 5DUHO\ 7UXVW DQG &RQILGHQFH 8SZDUG 5DWH < 5HTXHVWHG ,QIRUPDWLRQ 5DUHO\ &RPPXQLFDWLRQ 6FUHHQLQJ $OPRVW DOZD\V -RE ,QIRUPDWLRQ fffffff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

PAGE 266

,QGLYLGXDO %HKDYLRU -RE ,QYROYHPHQW &RPPLWPHQW WR 0HHWLQJ 6WDQGDUGV ,QLWLDWLYH 6HOIm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

PAGE 267

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‘ ‘ ‘f§ 5DUHO\ 5DUHO\ $OPRVW DOZD\V $OPRVW DOZD\V 5DUHO\ $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V )LJ &RQWLQXHG

PAGE 268

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

PAGE 269

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

PAGE 270

,QGLYLGXDO %HKDYLRU -RE ,QYROYHPHQW &RPPLWPHQW WR 0HHWLQJ 6WDQGDUGV ,QLWLDWLYH 6HOI,PSURYHPHQW :RUN*RDO &RPPLWPHQW )UXVWUDWLRQ /HYHOV 6HQVH RI $FKLHYHPHQW $EVHQWHHLVP 7XUQRYHU DW LYH *HQHUDO 3RVLWLYH /RZ 5DUHO\ +LJK $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V 5DUHO\ $OPRVW DOZD\V JDUHO\ ,QWUDJURXS %HKDYLRU /DWHUDO &RQILGHQFH DQG 7UXVW -RE 5HODWHG &RPPXQLFDWLRQ 1RQ-RE 5HODWHG &RPPXQLFDWLRQ &RRSHUDWLRQ 3DWWHUQV *URXS 8QLW\ ,QWHUDFWLRQ RII WKH -RE 1HJDWLYH *HQHUDO f 3RVLWLYH 5DUHO\ 5DUHO\ 5DUHO\ 5DUHO\ 5DUHO\ $OPRVW DOZD\V $OPRVW DOZD\V $OPR V W $OPR V W DOZD\V DOZD\V PRVW DOZD\V DOZD\V )LJ %HKDYLRUDO 3URILOH RI (PSOR\HHV )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHO 5HVSRQVH :RUN *URXS ULDQW $

PAGE 271

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

PAGE 272

,QGLYLGXDO %HKDYLRU -RE ,QYROYHPHQW &RPPLWPHQW WR 0HHWLQJ 6WDQGDUGV ,QLWLDWLYH 6HOI,PSURYHPHQW :RUN*RDO &RPPLWPHQW )UXVWUDWLRQ /HYHOV 6HQVH RI $FKLHYHPHQW $EVHQWHHLVP 7XUQRYHU ,QWUDJURXS %HKDYLRU /DWHUDO &RQILGHQFH DQG 7UXVW -RE 5HODWHG &RPPXQLFDWLRQ 1RQ-RE 5HODWHG &RPPXQLFDWLRQ &RRRHUDWLRQ 3DWWHUQV L r *URXS 8QLW\ ,QWHUDFWLRQ RII WKH -RE 1HJDWLYH *HQHUDO 3RVLWLYH /RZ 5DUHO\ /LWWOH /LWWOH 5DUHO\ $OPRVW DOZD\V 5DUHO\ $OPRVW DOZD\V $OPRVW DOZD\V +LJK $OPRVW DOZD\V +LJK +LJK $OPRVW DOZD\V 5DUHO\ $OPRVW DOZD\V 5DUHO\ 5DUHO\ 1HJDWLYH *HQHUDO 3RVLWLYH 5DUHO\ $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V 5DUHO\ $OPRVW DOZD\V $OPRVW DOZD\V )LJ %HKDYLRUDO 3URILOH RI (PSOR\HHV )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHO 5HVSRQVH :RUN *URXS 3ODQW $

PAGE 273

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‘ r P ‘ 5DUHO\ 5DUHO\ 5DUHO\ 5DUHO\ 5DUH $OPRVW DOZD\V $OPRVW DOZD\V 5DUHO\ $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V )LJf &RQWLQXHG

PAGE 274

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‘ 77,UQ VW DOZD\V 5DUHO\ $OPRVW DOZD\V 5DUHO\ 5DUHO\ $OPRVW DOZD\V $OPRVW DOZD\V )LJ %HKDYLRUDO 3URILOH RI (PSOR\HHV )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHO 5HVSRQVH :RUN *URXS 3ODQW $

PAGE 275

1HJDWLYH *HQHUDO 3RVLWLYH ,QWUDJURXS %HKDYLRU 9HUWLFDO 7UXVW DQG &RQILGHQFHf§ 'RZQZDUG 7UXVW DQG &RQILGHQFH 8SZDUG 5HTXHVWHG ,QIRUPDWLRQ &RPPXQLFDWLRQ 6FUHHQLQJ -RE ,QIRUPDWLRQ +XPDQ 5HODWLRQV ,QIRUPDWLRQ f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

PAGE 276

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

PAGE 277

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

PAGE 278

,QGLYLGXDO %HKDYLRU -RE ,QYROYHPHQW &RPPLWPHQW WR 0HHWLQJ 6WDQGDUGV ,QLWLDWLYH 6HOI,PSURYHPHQW :RUN*RDO &RPPLWPHQW )UXVWUDWLRQ /HYHOV 6HQVH RI $FKLHYHPHQW $EVHQWHHLVP 7XUQRYHU *HQHUDO 3RVLWLYH 5DUHO\ /LWWOH /LWWOH 5DUHO\ $OPRVW DOZD\V 5DUHO\ $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V 5DUHO\ $OPRVW DOZD\V 5DUHO\ ,QWUDJURXS %HKDYLRU /DWHUDO &RQILGHQFH DQG 7UXVW -RE 5HODWHG &RPPXQLFDWLRQ 1RQ-RE 5HODWHG &RPPXQLFDWLRQ &RRSHUDWLRQ 3DWWHUQV *URXS 8QLW\ r ,QWHUDFWLRQ RII WKH -RE 1HJDWLYH *HQHUDO 3RVLWLYH 5DUHO\ $OPRVW DOZD\V 5DUHO\ ‘ f§A $OPRVW DOZD\V 5DUHO\  $OPRVW DOZD\V 5DUHO\ An‘rnrnrrrAA $OPRVW DOZD\V 5DUHO\ $OPRVW DOZD\ V 5DUHO\ $OPRVW DOZD\V )LJ %HKDYLRUDO 3URILOH RI (PSOR\HHV )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHO 5HVSRQVH :RUN *URXS 3ODQW $ 1! /Q

PAGE 279

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

PAGE 280

,QGLYLGXDO %HKDYLRU -RE ,QYROYHPHQW m m &RPPLWPHQW WR 0HHWLQJ 6WDQGDUGV ,QLWLDWLYH 6HOI,PSURYHPHQW :RUN*RDO &RPPLWPHQW )UXVWUDWLRQ /HYHOV 6HQVH RI $FKLHYHPHQW $EVHQWHHLVP 7XUQRYHU ,QWUDJURXS %HKDYLRU /DWHUDO &RQILGHQFH DQG 7UXVW -RE 5HODWHG &RPPXQLFDWLRQ 1RQ-RE 5HODWHG &RPPXQLFDWLRQ &RRSHUDWLRQ 3DWWHUQV *URXS 8QLW\ ,QWHUDFWLRQ RII WKH -RE DW LYH /RZ 5DUHO\ /LWWOH /LWWOH 5DUHO\ $OPR V W DOZD\V 5DUHO\ $OPRVW DOZD\V $OPRVW DOZD\V *HQHUDO 3RVLWLYH +LJK $OPRVW DOZD\V +LJK +LJK $OPRVW DOZD\V 5DUHO\ $OPRVW DOZD\V 5DUHO\ 1HJDWLYH *HQHUDO 3RVLWLYH 5DUHO\ $OPRVW DOZD\V 5DUHO\ $OPRVW DOZD\V 5DUHO\  $OPRVW DOZD\V 5DUHO\ $OPRVW DOZD\V 5DUHO\ $OPRVW DOZD\V 5DUHO\ $OPRVW DOZD\V O Y2 )LJ %HKDYLRUDO 3URILOH RI (PSOR\HHV )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHO 5HVSRQVH :RUN *URXS 3ODQW $

PAGE 281

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

PAGE 282

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f§Ua 1HJDWL?H *HQHUDO 3RVLWLYH 5DUHO\ 5DUHO\ 5DU 5DUHO\ 5DUH 5DUHO\ $OPRVW DOZD\V DOZD\V $OPR U $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V )LJ %HKDYLRUDO 3URILOH RI (PSOR\HHV )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHO 5HVSRQVH :RUN *URXS 3ODQW $

PAGE 283

1HJDWLYH *HQHUDO 3RVLWLYH ,QWUDJURXS %HKDYLRU 9HUWLFDO 7UXVW DQG &RQILGHQFH 'RZQZDUG 7UXVW DQG &RQILGHQFH 8SZDUG 5HTXHVWHG ,QIRUPDWLRQ &RPPXQLFDWLRQ 6FUHHQLQJ -RE ,QIRUPDWLRQ +XPDQ 5HODWLRQV ,QIRUPDWLRQ &RRSHUDWLRQ DQG 7HDPZRUN $FFHSWDQFH RI 6XSHUYLVRU 'HFLVLRQV $FFHSWDQFH RI +LJKHU /HYHO 'HFLVLRQV $FFHSWDQFH RI 6WDII 'HFLVLRQV 5DUHO\ $OPRVW DOZD\V 5DUHO\ ? $OPRVW DOZD\V 5DUHO\ AVA$OPRVW DOZD\V $OPRVW DOZD\V 5DUHO\ 5DUHO\ $OPRVW DOZD\V 5DUHO\ aW DOZD\ V 5DUHO\ ? $OPRVW DOZD\V 5DUHO\ 9HU\ RIWHQ 5DUHO\ f 9HU\ RIWHQ 5DUHO\ ? $OPRVW DOZD\V LYH *HQHUDO 3RVLWLYH ,QWHUJURXS %HKDYLRU &RQILGHQFH DQG 7UXVW &RPPXQLFDWLRQV $FFXUDF\ &RPPXQLFDWLRQV 6FUHHQLQJ ,QIRUPDO &RPPXQLFDWLRQV &RRRHUDWLRQ DQG 7HDPZRUN / 7HDP 6SLULW $FFHSWDQFH RI 'HFLVLRQV ,QWHUDFWLRQ 3DWWHUQV 5DUHO\ 5DUHOY $OPRVW DOZD\V 5DUHO\ 5DUHO\ 5DUHO\ 5DUHO\ 5DUHO\ $OPRVW DOZD\V OPRVW DOZD\V DUHO\ PRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V )LJ &RQWLQXHG

PAGE 284

$33(1',; ( 35,0$5< $1' 0(',$7,1* 6758&785$/ /($'(56+,3 $1' %(+$9,25$/ 352),/(6 2) 3/$17 %

PAGE 285

6LPSOH &RPSOH[ 3ULPDU\ 6WUXFWXUDO 9DULDEOHV 6L]H :RUN )ORZ ,QWUDJURXS 637 )DFWRUV ,QWUDJURXS :RUN 'HPDQGV +HXULVWLFV 0HGLDWLQJ 6WUXFWXUDO 9DULDEOHV )RUPDO $XWKRULW\ 5HODWLRQVKLSV &RQWURO 6\VWHPV ,QIRUPDWLRQ 6\VWHP ,QWUDJURXS } )LJ 3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO 9DULDEOH 3URILOH :RUN *URXS 3ODQW %

PAGE 286

6LPSOH &RPSOH[ 3ULPDU\ 6WUXFWXUDO 9DULDEOHV 6L]H 6PDOO /DUJH :RUN )ORZ ,QWUDJURXS 1RQLQWHJUDWHG aa ,QWHJUDWHG 637 )DFWRUV ,QWUDJURXS &RQFHQWUDWHG 'LVSHUVHG :RUN 'HPDQGV 6WDEOH 8QVWDEOH +HXULVWLFV 3UHGLFWDEOH 8QSUHGLFWDEOH 0HGLDWLQJ 6WUXFWXUDO 9DULDEOHV )RUPDO $XWKRULW\ 5HODWLRQVKLSV 'LIIXVH 6SHFLILF &RQWURO 6\VWHPV ,QVWLWXWLRQDO A ,QGLYLGXDO ,QIRUPDWLRQ 6\VWHP ,QWUDJURXS 6LPSOH &RPSOH[ )LJ 3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO 9DULDEOH 3URILOH :RUN *URXS 3ODQW %

PAGE 287

6LPSOH &RPSOH[ 3ULPDU\ 6WUXFWXUDO 9DULDEOHV 6L]H :RUN )ORZ ,QWUDJURXS 637 )DFWRUV ,QWUDJURXS :RUN 'HPDQGV +HXULVWLFV 0HGLDWLQJ 6WUXFWXUDO 9DULDEOHV )RUPDO $XWKRULW\ 5HODWLRQVKLSV &RQWURO 6\VWHPV ,QIRUPDWLRQ 6\VWHP ,QWUDJURXS 'LIIXVH 6SHFLILF )LJ 3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO 9DULDEOH 3URILOH :RUN *URXS 3ODQW %

PAGE 288

6LPSOH &RPSOH[ 3ULPDU\ 6WUXFWXUDO 9DULDEOHV 6L]H :RUN )ORZ ,QWUDJURXS 637 )DFWRUV ,QWUDJURXS :RUN 'HPDQGV +HXULVWLFV 0HGLDWLQJ 6WUXFWXUDO 9DULDEOHV )RUPDO $XWKRULW\ 5HODWLRQVKLSV &RQWURO 6\VWHPV ,QIRUPDWLRQ 6\VWHP ,QWUDJURXS )LJ 3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO 9DULDEOH 3URILOH :RUN *URXS 3ODQW %

PAGE 289

6LPSOH &RPSOH[ 3ULPDU\ 6WUXFWXUDO 9DULDEOHV 6L]H 6PDOO /DUJH :RUN )ORZ ,QWUDJURXS 1RQLQWHJUDWHG ,QWHJUDWHG 637 )DFWRUV ,QWUDJURXS &RQFHQWUDWHG AWrrrArA 'LVSHUVHG :RUN 'HPDQGV 6WDEOH 8QVWDEOH +HXULVWLFV n 0 L L L 8QSUHGLFWDEOH a 0HGLDWLQJ 6WUXFWXUDO 9DULDEOHV )RUPDO $XWKRULW\ 5HODWLRQVKLSV 'LIIXVH 6SHFLILF &RQWURO 6\VWHPV ,QVWLWXWLRQDO A ,QGLYLGXDO ,QIRUPDWLRQ 6\VWHP ,QWUDJURXS 6LPSOH &RPSOH[ )LJ 3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO 9DULDEOH 3URILOH :RUN *URXS 3ODQW %

PAGE 290

6LPSOH &RPSOH[ 3ULPDU\ 6WUXFWXUDO 9DULDEOHV 6L]H 6PDOO /DUJH :RUN )ORZ ,QWUDJURXS 1RQLQWHJUDWHG ,QWHJUDWHG 637 )DFWRUV ,QWUDJURXS &RQFHQWUDWHG 'LVSHUVHG :RUN 'HPDQGV 6WDEOH 8QVWDEOH +HXULVWLFV 3UHGLFWDEOH 8QSUHGLFWDEOH n 0HGLDWLQJ 6WUXFWXUDO 9DULDEOHV )RUPDO $XWKRULW\ 5HODWLRQVKLSV 'LIIXVH 6SHFLILF &RQWURO 6\VWHPV ,QVWLWXWLRQDO ,QGLYLGXDO ,QIRUPDWLRQ 6\VWHP ,QWUDJURXS 6LPSOH AWrrrrrrrA &RPSOH[ )LJ 3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO 9DULDEOH 3URILOH :RUN *URXS 3ODQW %

PAGE 291

'HPRFUDWLF *HQHU DO $XWRFUDWLF /HDGHUVKLS )XQFWLRQV 5HSUHVHQWDWLRQ ,QWHUDFWLRQ 6WDQGDUGV *RDO (PSKDVLV 3DUWLFLSDWLRQ 'LUHFWLRQ 5XOH 2ULHQWDWLRQ 0RWLYDWLRQ 0LVFHOODQHRXV 'LPHQVLRQV 7HFKQLFDO 4XDOLILFDWLRQV $FWLRQ 2ULHQWDWLRQ 3UREOHP 6NLOOV 3HUVRQDO $ELOLWLHV /RZ &RPSHWHQF\ 0RGHUDWH +LJK &RPSHWHQF\ /LPLWHG ([WHQVLYH 3DVVLYH $FWLYH /LPLWHG ([WHQVLYH 1HJDWLYH 3RVLWLYH )LJ 3ODQW 0DQDJHUnV /HDGHUVKLS 3URILOH 3ODQW %

PAGE 292

'HPRFUDWLF *HQHUDO $XWRFUDWLF /HDGHUVKLS )XQFWLRQV 5HSUHVHQWDWLRQ 8RYD U G 'R YQYD U G ,QWHUDFWLRQ /DWHUDO 9HUWLFDO 6WDQGDUGV /RZ +LJK *RDO (PSKDVLV *URXS ? ,QGLYLGXDO 3DUWLFLSDWLRQ ([WHQVLYH 5HVWULFWLYH 'LUHFWLRQ /DLVVH] )DLUH &ORVH 5XOH 2ULHQWDWLRQ -XGJPHQWDO ? 6WULFW 0RWLYDWLRQ 5HZDUGV 3HQDOWLHV 0LVFHOODQHRXV 'LPHQVLRQV /RZ &RPSHWHQF\ 0RGHUDWH +LJK &RPSHWHQF\ 7HFKQLFDO 4XDOLILFDWLRQV /LPLWHG ([WHQVLYH $FWLRQ 2ULHQWDWLRQ 3DVVLYH $FWLYH 3UREOHP 6NLOOV /LPLWHG ([WHQVLYH 3HUVRQDO $ELOLWLHV 1HJDWLYH 3RVLWLYH )LJ 6HFRQG /HYHO 6XSHUYLVRUnV /HDGHUVKLS 3URILOH :RUN *URXS 3ODQW %

PAGE 293

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fV /HDGHUVKLS 3URILOH :RUN *URXS 3ODQW %

PAGE 294

'HPRFUDWLF *HQHUDO $XWRFUDWLF /HDGHUVKLS )XQFWLRQV 5HSUHVHQWDWLRQ ,QWHUDFWLRQ 6WDQGDUGV *RDO (PSKDVLV 3DUWLFLSDWLRQ 'LUHFWLRQ 5XOH 2ULHQWDWLRQ 0RWLYDWLRQ 0LVFHOODQHRXV 'LPHQVLRQV 7HFKQLFDO 4XDOLILFDWLRQV $FWLRQ 2ULHQWDWLRQ 3UREOHP 6NLOOV 3HUVRQDO $ELOLWLHV /RZ &RPSHWHQF\ 0RGHUDWH +LJK &RPSHWHQF\ /LPLWHG ([WHQVLYH )LJ 6HFRQG /HYHO 6XSHUYLVRUnV /HDGHUVKLS 3URILOH :RUN *URXS 3ODQW %

PAGE 295

'HPRFUDWLF *HQHUDO $XWRFUDWLF /HDGHUVKLS )XQFWLRQV 5HSUHVHQWDWLRQ 8SZDUG 'RZQZDUG ,QWHUDFWLRQ /DWHUDO 9HUWLFDO 6WDQGDUGV /RZ +LJK *RDO (PSKDVLV *URXS ,QGLYLGXDO 3DUWLFLSDWLRQ ([WHQVLYH (HVWULFWLYH 'LUHFWLRQ /DLVVH] )DLUH &ORVH 5XOH 2ULHQWDWLRQ -XGJPHQWDO i 6WULFW 0RWLYDWLRQ 5HZDUGV 3HQDOWLHV 0LVFHOODQHRXV 'LPHQVLRQV /RZ &RPSHWHQF\ 0RGHUDWH +LJK &RPSHWHQF\ 7HFKQLFDO 4XDOLILFDWLRQV /LPLWHG ([WHQVLYH $FWLRQ 2ULHQWDWLRQ 3DVVLYH AJAA $FWLYH 3UREOHP 6NLOOV /LPLWHG ([WHQVLYH 3HUVRQDO $ELOLWLHV 1HJDWLYH 3RVLWLYH )LJ f§6HFRQG /HYHO 6XSHUYLVRUnV /HDGHUVKLS 3URILOH :RUN *URXS 3ODQW %

PAGE 296

'HPRFUDWLF *HQHUDO $XWRFUDWLF /HDGHUVKLS )XQFWLRQV 5HSUHVHQWDWLRQ ,QWHUDFWLRQ 6WDQGDUGV *RDO (PSKDVLV 3DUWLFLSDWLRQ 'LUHFWLRQ 5XOH 2ULHQWDWLRQ 0RWLYDWLRQ 0LVFHOODQHRXV 'LPHQVLRQV 7HFKQLFDO 4XDOLILFDWLRQV $FWLRQ 2ULHQWDWLRQ 3UREOHP 6NLOOV 3HUVRQDO $ELOLWLHV 8SZDUG 'RZQZDU G /RZ &RPSHWHQF\ 0RGHUDWH +LJK &RPSHWHQF\ /LPLWHG ([WHQVLYH )LJ 6HFRQG /HYHO 6XSHUYLVRUfV /HDGHUVKLS 3URILOH :RUN *URXS 3ODQW %

PAGE 297

,QGLYLGXDO %HKDYLRU -RE ,QYROYHPHQW &RPPLWPHQW WR 0HHWLQJ 6WDQGDUGV ,QLWLDWLYH 6HOIf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

PAGE 298

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n 1HJDWLYH *HQHUDO 3RVLWLYH 5DUHO\ 5DUHO\ $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V 5DUHO\ $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V DOZD\V )LJ &RQWLQXHG

PAGE 299

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f $OPRVW DOZD\V 5DUHO\ f $OPRO W DOZD\V 5DUHO\ $OPRVW DOZD\V 3XUHO\ $OPRVW DOZD\V )LJ %HKDYLRUDO 3URILOH RI (PSOR\HHV 6XSHUYLVRU 5HVSRQVH :RUN *URXS 3ODQW %

PAGE 300

1HJDWLYH *HQHUDO 3RVLWLYH ,QWUDJURXS %HKDYLRU 9HUWLFDO 7UXVW DQG &RQILGHQFH 'RZQZDUG 7UXVW DQG &RQILGHQFH 8SZDUG 5HTXHVWHG ,QIRUPDWLRQ &RPPXQLFDWLRQ 6FUHHQLQJ -RE ,QIRUPDWLRQ +XPDQ 5HODWLRQV ,QIRUPDWLRQ &RRSHUDWLRQ DQG 7HDPZRUN $FFHSWDQFH RI 6XSHUYLVRU 'HFLVLRQV $FFHSWDQFH RI +LJKHU /HYHO 'HFLVLRQV $FFHSWDQFH RI 6WDII 'HFLVLRQV 5DUHO\ 5DUHO\ 5DUHO\ ZD\V $OPRVW DOZD\V $OPRVW DOZD\V 5DUHO\ SL Y $OPRVW DOZD\V 5DHO\ $OPRVW DOZD\V 5DUHO\ A A $OPRVW DOZD\V 5DUHO\ 9HU\ RIWHQ ‘9 A A A A_ 5DUHO\ 5DUHO\ WHQ VW DOZD 1HJDWLYH ,QWHUJURXS %HKDYLRU &RQILGHQFH DQG 7UXVW 5DUHO\ &RPPXQLFDWLRQV $FFXUDF\ 5DUHO\ &RPPXQLFDWLRQV 6FUHHQLQJ $OPRVW DOZD\V ,QIRUPDO &RPPXQLFDWLRQV 5DUHO\ &RRSHUDWLRQ DQG 7HDPZRUN 5DUHO\ 7HDP 6SLULW 5DUHO\ $FFHSWDQFH RI 'HFLVLRQV 5DUHO\ ,QWHUDFWLRQ 3DWWHUQV 5DUHO\ *HQHUDO 3RVLWLYH $OPRVW DOZD\V VW DOZD\V 5DUHO\ PRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V )LJ &RQWLQXHG

PAGE 301

L ,QGLYLGXDO %HKDYLRU -RE ,QYROYHPHQW &RPPLWPHQW WR 0HHWLQJ 6WDQGDUGV ,QLWLDWLYH 6HOI,PSURYHPHQW :RUN*RDO &RPPLWPHQW )UXVWUDWLRQ /HYHOV 6HQVH RI $FKLHYHPHQW $EVHQWHHLVP 7XUQRYHU ,QWUDJURXS %HKDYLRU /DWHUDO &RQILGHQFH DQG 7UXVW f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

PAGE 302

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f§f§f§f§ P P $OPRVW DOZD\V $OPRVW DOZD\V 9HU\ RIWHQ 5DUHO\ O 9HU\ RIWHQ 5DUHO\ $OPRVW DOZD\V 1HJDWLYH *HQHUDO 3RVLWLYH 5DUHO\ 5DUHO\ $OPRVW DOZD\V 5DUHO\ 5DUHO\ 5DUHO\ 5DUHO\ 5DUHOY $OPRVW DOZD\V $OPRVW DOZD\V 5DUHO\ IRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V )LJ &RQWLQXHG

PAGE 303

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r $OPRVW DOZD\V DOZD\V :D\V $OPRVW DOZD\V $OPRVW $OPRVW DOZD\V )LJ %HKDYLRUDO 3URILOH RI (PSOR\HHV 6XSHUYLVRU 5HVSRQVH :RUN *URXS 3ODQW %

PAGE 304

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

PAGE 305

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f%HKDYLRUDO 3URILOH RI (PSOR\HHV 6XSHUYLVRU 5HVSRQVH :RUN *URXS 3ODQW %

PAGE 306

1HJDWLYH *HQHUDO 3RVLWLYH ,QWUDJURXS %HKDYLRU 9HUWLFDO 7UXVW DQG &RQILGHQFH 'RZQZDUG 7UXVW DQG &RQILGHQFH 8SZDUG 5HTXHVWHG ,QIRUPDWLRQ &RPPXQLFDWLRQ 6FUHHQLQJ -RE ,QIRUPDWLRQ +XPDQ 5HODWLRQV ,QIRUPDWLRQ &RRSHUDWLRQ DQG 7HDPZRUN $FFHSWDQFH RI 6XSHUYLVRU 'HFLVLRQV $FFHSWDQFH RI +LJKHU /HYHO 'HFLVLRQV $FFHSWDQFH RI 6WDII 'HFLVLRQV 5DUHO\ 5DUHO\ 5DUHO\ $OPRVW DOZD\V 5DUHO\ 5DUHO\ 5DUHO\ 5DUHO\ 5DUHO\ 5DUHO\ $OPRVW DOZDYV N r r eW DOZD\V 5DUHO\ DF[JW DOZD\V PRVW DOZDYV $OPRVW DOZD\V 7HQ RU WHQ $OPRVW DOZD\V 1HJDWLYH *HQHUDO 3RVLWLYH ,QWHUJURXS %HKDYLRU &RPPXQLFDWLRQV $FFXUDF\ &RPPXQLFDWLRQV 6FUHHQLQJ ,QIRUPDO &RPPXQLFDWLRQV &RRSHUDWLRQ DQG 7HDPZRUN 7HDP 6SLULW $FFHSWDQFH RI 'HFLVLRQV 5DUHO\ ,QWHUDFWLRQ 3DWWHUQV 5DUHO\ 5DUHO\ 5DUHO\ 5DUHO\ 5DUHO\ $OPRVW DOZD\V 5DUHO\ W D ZD\ V $OPRVW DOZD\V RVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V )LJ &RQWLQXHG

PAGE 307

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

PAGE 308

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

PAGE 309

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

PAGE 310

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

PAGE 311

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f§%HKDYLRUDO 3URILOH RI (PSOR\HHV )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHO 5HVSRQVH :RUN *URXS 3ODQW %

PAGE 312

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m9HU\ RIWHQ VW DOZD\V 1HJDWLYH *HQHUDO 3RVLWLYH 5DUHO\ 5DUHO\ 5DUHO\ 5DUHO\ $OPRVW DOZD\V 5DUHO\ ? $OPRVW DOZD\V $OPRVW DOZD\V 5DUHO\ 5DUHO\ f§ ‘f§$OPRVW DOZD\V 5DUHO\ c $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V f )LJ &RQWLQXHG

PAGE 313

,QGLYLGXDO %HKDYLRU -RE ,QYROYHPHQW &RPPLWPHQW WR 0HHWLQJ 6WDQGDUGV ,QLWLDWLYH 6HOI,PSURYHPHQW :RUN*RDO &RPPLWPHQW )UXVWUDWLRQ /HYHOV 6HQVH RI $FKLHYHPHQW $EVHQWHHLVP 7XUQRYHU 1HJDWLYH *HQHUDO 3RVLWLYH /RZ 5DUHO\ /LWWOH /LWWOH 5DUHO\ $OPRVW DOZD\V 5DUHO\ $OPRVW DOZD\V $OPRVW DOZD\V +LJK $OPRVW DOZD\V +LJK -WQR V W D ZD\ V PRVW DOZD\V L ‘‘ 5DUHO\ 5DUHO\ ,QWUDJURXS %HKDYLRU /DWHUDO &RQILGHQFH DQG 7UXVW -RE 5HODWHG &RPPXQLFDWLRQ 1RQ-RE 5HODWHG &RPPXQLFDWLRQ &RRSHUDWLRQ 3DWWHUQV *URXS 8QLW\ ,QWHUDFWLRQ RII WKH -RE 1HJDWLYH 5DUHO\ 5DUHOY 5DUHO\ 5DUHO\ *HQHUDO 3RVLWLYH $OPRVW DOZD\V 7KRVW DOZD\V $OPRVW DOZD\V -PRAW DOZD\V ,UQRVW DOZD\V $OPRVW DOZD\V )LJR %HKDYLRUDO 3URILOH RI (PSOR\HHV )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHO 5HVSRQVH :RUN *URXS ULDQW %

PAGE 314

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IIRVW DOZD\V $OPRVW DOZD\V 5DUHO\ 5DUHO\ MLrA$OPRVW DOZD\V 5DUHO\ $OPRVW DOZD\V 5DUHO\ $OPRVW DOZD\V 5DUHO\ $OPRVW DOZD\V 5DUHO\ f§} ‘f§ f§ $OPRVW DOZD\V a )LJ &RQWLQXHG

PAGE 315

,QGLYLGXDO %HKDYLRU -RE ,QYROYHPHQW &RPPLWPHQW WR 0HHWLQJ 6WDQGDUGV ,QLWLDWLYH 6HOI,PSURYHPHQW :RUN*RDO &RPPLWPHQW )UXVWUDWLRQ /HYHOV 6HQVH RI $FKLHYHPHQW $EVHQWHHLVP 7XUQRYHU 1HJDWLYH *HQHUDO 3RVLWLYH /RZ 5DUHO\ /LWWOH /LWWOH 5DUHO\ $OPRVW DOZD\V 5DUHO\ $OPRVW DOZD\V $OPRVW DOZD\V +LJK $OPRVW DOZD\V +LJK +LJK $OPRVW DOZD\V 5DUHO\ $OPRVW DOZD\V 5DUHO\ 5DUHO\ ,QWUDJURXS %HKDYLRU /DWHUDO &RQILGHQFH DQG 7UXVW -RE 5HODWHG &RPPXQLFDWLRQ 1RQ-RE 5HODWHG &RPPXQLFDWLRQ &RRSHUDWLRQ 3DWWHUQV *URXS 8QLW\ ,QWHUDFWLRQ RII WKH -RE 1HJDWLYH *HQHUDO 3RVLWLYH 5DUHO\ 5DUHO\ 5DUHO\ 5DUHO\ 5DUHO\ 5DUHO\ $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V P $OPRVW DOZD\V )LJ %HKDYLRUDO 3URILOH RI (PSOR\HHV )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHO 5HVSRQVH :RUN *URXS 3ODQW %

PAGE 316

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f &RQWLQXHG

PAGE 317

$33(1',; ) 35,0$5< $1' 0(',$7,1* 6758&785$/ /($'(56+,3 $1' %(+$9,25$/ 352),/(6 2) 3,$17 &

PAGE 318

6LPSOH &RPSOH[ 3ULPDU\ 6WUXFWXUDO 9DULDEOHV 6L]H :RUN )ORZ ,QWUDJURXS 637 )DFWRUV ,QWUDJURXS :RUN 'HPDQGV +HXULVWLFV 0HGLDWLQJ 6WUXFWXUDO 9DULDEOHV )RUPDO $XWKRULW\ 5HODWLRQVKLSV &RQWURO 6\VWHPV ,QIRUPDWLRQ 6\VWHP ,QWUDJURXS )LJ 3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO 9DULDEOH 3URILOH :RUN *URXS 3ODQW &

PAGE 319

6LPSOH &RPSOH[ 3ULPDU\ 6WUXFWXUDO 9DULDEOHV 6L]H :RUN )ORZ ,QWUDJURXS 637 )DFWRUV ,QWUDJURXS :RUN 'HPDQGV +HXULVWLFV 6PDOO 3UHGL &RQWURO 6\VWHPV ,QVWLWXWLRQDO ,QIRUPDWLRQ 6\VWHP ,QWUDJURXS 6LPSOH /DUJH ,QWHJUDWHG 'LVSHUVHG 8QVWDEOH 8QSUHGLFWDEOH L 0HGLDWLQJ 6WUXFWXUDO 9DULDEOHV L )RUPDO $XWKRULW\ 5HODWLRQVKLSV 'LIIXVH 6SHFLILF )LJ f§3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO 9DULDEOH 3URILOH :RUN *URXS 3ODQW &

PAGE 320

6LPOH &RPSOH[ 3ULPDU\ 6WUXFWXUDO 9DULDEOHV 6L]H :RUN )ORZ ,QWUDJURXS 637 )DFWRUV ,QWUDJURXS :RUN 'HPDQGV +HXULVWLFV 0HGLDWLQJ 6WUXFWXUDO 9DULDEOHV )RUPDO $XWKRULW\ 5HODWLRQVKLSV &RQWURO 6\VWHPV ,QIRUPDWLRQ 6\VWHP ,QWUDJURXS 'LIIXVH 6SHFLILF ,QV WLWXWLRQDO LPSOH &RPSOH[ )LJ 3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO 9DULDEOH 3URILOH :RUN *URXS 3ODQW &

PAGE 321

6LPSOH &RPSOH[ 3ULPDU\ 6WUXFWXUDO 9DULDEOHV 6L]H :RUN )ORZ ,QWUDJURXS 6S7 )DFWRUV ,QWUDJURXS :RUN 'HPDQGV +HXULVWLFV 0HGLDWLQJ 6WUXFWXUDO 9DULDEOHV )RUPDO $XWKRULW\ 5HODWLRQVKLSV &RQWURO 6\VWHPV ,QIRUPDWLRQ 6\VWHP ,QWUDJURXS )LJ 3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO 9DULDEOH 3URILOH :RUN *URXS 3ODQW &

PAGE 322

6LPSOH &RPSOH[ 3ULPDU\ 6WUXFWXUDO 9DULDEOHV 6L]H 6PDOO /DUJH :RUN )ORZ ,QWUDJURXS 1RQLQWHJUDWHG ,QWHJUDWHG 637 )DFWRUV ,QWUDJURXS &RQFHQWUDWHG 'LVSHUVHG :RUN 'HPDQGV 6WDEOH 8QVWDEOH +HXULVWLFV 3UHGLFWDEOH AAPrrrrA 8QSUHGLFWDEOH 0HGLDWLQJ 6WUXFWXUDO 9DULDEOHV )RUPDO $XWKRULW\ 5HODWLRQVKLSV 'LIIXVH 6SHFLILF &RQWURO 6\VWHPV ,QVWLWXWLRQDO ,QGLYLGXDO ,QIRUPDWLRQ 6\VWHP ,QWUDJURXS 6LPSOH &RPSOH[ a f§ )LJ 3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO 9DULDEOH 3URILOH :RUN *URXS 3ODQW &

PAGE 323

6LPOH &RPSOH[ 3ULPDU\ 6WUXFWXUDO 9DULDEOHV 6L]H :RUN )ORZ ,QWUDJURXS 637 )DFWRUV ,QWUDJURXS :RUN 'HPDQGV +HXULVWLFV 0HGLDWLQJ 6WUXFWXUDO 9DULDEOHV )RUPDO $XWKRULW\ 5HODWLRQVKLSV &RQWURO 6\VWHPV ,QIRUPDWLRQ 6\VWHP ,QWUDJURXS )LJ 3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO 9DULDEOH 3URILOH :RUN *URXS 3ODQW &

PAGE 324

6LPSOH &RPSOH[ 3ULPDU\ 6WUXFWXUDO 9DULDEOHV 6L]H 6PDOO /DUJH :RUN )ORZ ,QWUDJURXS L LBL 0LLn, ,QWHJUDWHG 637 )DFWRUV ,QWUDJURXS &R Q FHMDrI6WHG 'LVSHUVHG :RUN 'HPDQGV 6WDEOH 8QVWDEOH +HXULVWLFV 3UHGLFWDEOH n 8QSUHGLFWDEOH nnL 0HGLDWLQJ 6WUXFWXUDO 9DULDEOHV )RUPDO $XWKRULW\ 5HODWLRQVKLSV i 'LIIXVH 6SHFLILF &RQWURO 6\VWHPV ,QVWLWXWLRQDO ,QGLYLGXDO ,QIRUPDWLRQ 6\VWHP ,QWUDJURXS 6LPSOH &RPSOH[ )LJ 3ULPDU\ DQG 0HGLDWLQJ 6WUXFWXUDO 9DULDEOH 3URILOH :RUN *URXS 3ODQW &

PAGE 325

'HPRFUDWLF *HQHUDO $XWRFUDWLF /HDGHUVKLS )XQFWLRQV 5HSUHVHQWDWLRQ 8SZDUG 'RZQZDUG ,QWHUDFWLRQ /DWHUDO 9HUWLFDO 6WDQGDUGV /RZ KLJK *RDO (PSKDVLV *URXS ? ,QGLYLGXDO 3DUWLFLSDWLRQ ([WHQVLYH 5HVWULFWLYH 'LUHFWLRQ /DLVVH] )DLUH &ORVH 5XOH 2ULHQWDWLRQ -XGJPHQWDO c 6WULFW 0RWLYDWLRQ 5HZDUGV 3HQDOWLHV 0LVFHOODQHRXV 'LPHQVLRQV /RZ &RPSHWHQF\ 0RGHUDWH +LJK &RPSHWHQF\ 7HFKQLFDO 4XDOLILFDWLRQV /LPLWHG ([WHQVLYH $FWLRQ 2ULHQWDWLRQ 3DVVLYH $FWLYH 3UREOHP 6NLOOV /LPLWHG ([WHQVLYH 3HUVRQDO $ELOLWLHV 1HJDWLYH AAAA6A3RVL WLYH )LJ 3ODQW 0DQDJHUV /HDGHUVKLS 3URILOH 3ODQW &

PAGE 326

'HPRFUDWLF *HQHUDO $XWRFUDWLF /HDGHUVKLS )XQFWLRQV 5HSUHVHQWDWLRQ ,QWHUDFWLRQ 6WDQGDUGV *RDO (PSKDVLV 3DUWLFLSDWLRQ 'LUHFWLRQ 5XOH 2ULHQWDWLRQ 0RWLYDWLRQ 0LVFHOODQHRXV 'LPHQVLRQV 7HFKQLFDO 4XDOLILFDWLRQV $FWLRQ 2ULHQWDWLRQ 3UREOHP 6NLOOV 3HUVRQDO $ELOLWLHV 8SZDUG /DWHUDO /RZ *URXS ([WHQVLYH /DLVVH] )DLUH -XGJPHQWDO 5HZDUGV 'RZQZDUG 9HUWLFDO +LJK ,QGLYLGXDO 3HI WULFWLYH &ORVH 6WULFW 3HQDOWLHV /RZ &RPSHWHQF\ 0RGHUDWH +LJK &RPSHWHQF\ /LPLWHG ([WHQVLYH 3DVVLYH !Y $FWLYH /LPLWHG ([WHQVLYH 1HJDWLYH 3RVLWLYH f )LJ $VVLVWDQW 3ODQW 0DQDJHUnV /HDGHUVKLS 3URILOH 3ODQW &

PAGE 327

'HPRFUDWLF *HQHUDO $XWRFUDWLF /HDGHUVKLS )XQFWLRQV 5HSUHVHQWDWLRQ 8SZDUG 'RZQZDUG ,QWHUDFWLRQ /DWHUDO 9HUWLFDO 6WDQGDUGV /RY +LJK *RDO (PSKDVLV *URXS ,QGLYLGXDO 3DUWLFLSDWLRQ ([WHQVLYH AQrrrrA 5HVWULFWLYH 'LUHFWLRQ /DLVVH] )DLUH &ORVH 5XOH 2ULHQWDWLRQ -XGJPHQWDO 6WULFW 0RWLYDWLRQ 5HZDUGV 3HQDOWLHV 0LVFHOODQHRXV 'LPHQVLRQV /RZ &RPSHWHQF\ 0RGHUDWH +LJK &RPSHWHQF\ 7HFKQLFDO 4XDOLILFDWLRQV /LPLWHG ([WHQVLYH $FWLRQ 2ULHQWDWLRQ 3DVVLYH $FWLYH 3UREOHP 6NLOOV /LPLWHG ([WHQVLYH 3HUVRQDO $ELOLWLHV 1HJDWLYH 3RVLWLYH A )LJ 6HFRQG /HYHO 6XSHUYLVRUnV /HDGHUVKLS 3URILOH :RUN *URXS 3ODQW &

PAGE 328

/HDGHUVKLS )XQFWLRQV 5HSUHVHQWDWLRQ ,QWHUDFWLRQ 6WDQGDUGV *RDO (PSKDVLV 3DUWLFLSDWLRQ 'LUHFWLRQ 5XOH 2ULHQWDWLRQ 0RWLYDWLRQ 0LVFHOODQHRXV 'LPHQVLRQV 7HFKQLFDO 4XDOLILFDWLRQV $FWLRQ 2ULHQWDWLRQ 3UREOHP 6NLOOV 3HUVRQDO $ELOLWLHV 'HPRFUDWLF *HQHUDO $XWRFUDWLF 8SZDUG 'RZQZDUG 5HZDUGV /RZ &RPSHWHQF\ 0RGHUDWH +LJK &RPSHWHQF\ /LPLWHG ([WHQVLYH 6HFRQG /HYHO 6XSHUYLVRUA /HDGHUVKLS 3URILOH :RUN *URXS 3ODQW &

PAGE 329

'HPRFUDWLF *HQHUDO $XWRFUDWLF /HDGHUVKLS )XQFWLRQV 5HSUHVHQWDWLRQ 8SZDUG 'RZQZDUG ,QWHUDFWLRQ /DWHUDO 9HUWLFDO 6WDQGDUGV /RZf +LJK *RDO (PRKDVLV $ *URXS ,QGLYLGXDO 3DUWLFLSDWLRQ ([WHQVLYH 5HVWULFWLYH 'LUHFWLRQ /DLVVH] )DLUH &ORVH 5XOH 2ULHQWDWLRQ -XGJPHQWDO 6WULFW 0RWLYDWLRQ 5HZDUGV 3HQDOWLHV 0LVFHOODQHRXV 'LPHQVLRQV /RZ &RPSHWHQF\ 0RGHUDWH +LJK &RPSHWHQF\ 7HFKQLFDO 4XDOLILFDWLRQV /LPLWHG ([WHQVLYH $FWLRQ 2ULHQWDWLRQ 3DVVLYH $FWLYH 3UREOHP 6NLOOV /LPLWHG BArr!rr!aarP ([WHQVLYH 3HUVRQDO $ELOLWLHV 1HJDWLYH 3RVLWLYH )LJ 6HFRQG /HYHO 6XSHUYLVRUfV /HDGHUVKLS 3URILOH :RUN *URXS 3ODQW &

PAGE 330

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fV /HDGHUVKLS 3URILOH :RUN *URXS 3ODQW &

PAGE 331

,QGLYLGXDO %HKDYLRU -RE ,QYROYHPHQW &RPPLWPHQW WR 0HHWLQJ 6WDQGDUGV ,QLWLDWLYH 6HLI,PSURYHPHQW :RUN*RDO &RPPLWPHQW )UXVWUDWLRQ /HYHOV 6HQVH RI $FKLHYHPHQW $EVHQWHHLVP 7XUQRYHU 1HJDWLYH *HQHUDO 3RVLWLYH 6n /RZ +LJK 5DUHO\ AYrrrrA $OPRVW DOZD\V /LWWOH +LJK /LWWOH +LJK 5DUHO\ $OPRVW DOZD\V $OPRVW DOZD\V 5DUHO\ 5DUHO\ $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V 5DUHO\ 5DUHO\ ,QWUDJURXS %HKDYLRU /DWHUDO &RQILGHQFH DQG 7UXVW -RE 5HODWHG &RPPXQLFDWLRQ 1RQ-RE 5HODWHG &RPPXQLFDWLRQ &RRSHUDWLRQ 3DWWHUQV *URXS 8QLW\ ,QWHUDFWLRQ RII WKH -RE 1HJDWLYH r *HQHUDO 3RVLWLYH 5DUHO\ $OPRVW DOZD\V 5DUHO\ $OPR IW DOZD\V %DUHO\ AA$ULWUR V W DOZD\V 5DUHO\ $OPRVW DOZD\V 5DUHO\ 5DUHO\ $OPRVW DOZD\V $OPRVW DOZD\V )LJ %HKDYLRUDO 3URILOH RI (PSOR\HHV $VVLVWDQW 3ODQW 0DQDJHUnV 5HVSRQVH :RUN *URXSV DQG 3ODQW &

PAGE 332

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fUXVW &RPPXQLFDWLRQV $FFXUDF\ &RPPXQLFDWLRQV 6FUHHQLQJ ,QIRUPDO &RPPXQLFDWLRQV &RRSHUDWLRQ DQG 7HDPZRUN 7HDP 6SLULW $FFHSWDQFH RI 'HFLVLRQV ,QWHUDFWLRQ 3DWWHUQV 5DUHO\ $OPRVW DOZD\V 5DUHO\ $OPRVW DOZD\V $OPRVW DOZD\V 5DLHO\ 5DUHO\ AQIOPRVW DZDY V 5DUHO\ $OPR V W DOZD\V 5DUHO\ 5DUHO\ 5DUHO\ L PRVW $OPRVW )LJ &RQWLQXHG

PAGE 333

,QGLYLGXDO %HKDYLRU -RE ,QYROYHPHQW &RPPLWPHQW WR 0HHWLQJ 6WDQGDUGV ,QLWLDWLYH} 6HOI,PSURYHPHQW :RUN*RDO &RPPLWPHQW )UXVWUDWLRQ /HYHOV F 6HQVH RI $FKLHYHPHQW $EVHQWHHLVP 7XUQRYHU } 1HJDWLYH *HQHUDO 3RVLWLYH /RZ 5DUHO\ B +LJK $OPRVW DOZD\V /LWWOH /LWWOH 5DUHO\ JLZD\ V $OPRVW DOZD\V 776LUHO\ ORVW DOZD\V 5DUHO\ ,QWUDJURXR %HKDYLRU /DWHUDO ‘/ &RQILGHQFH DQG 7UXVW fffffff -RE 5HODWHG &RPPXQLFDWLRQ 1RQ-RE 5HODWHG &RPPXQLFDWLRQ &RRSHUDWLRQ 3DWWHUQV *URXS 8QLW\ ,QWHUDFWLRQ RII WKH -RE 1HJDWLYH *HQHUDO 3RVLWLYH 5DUHO\ $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V EVW DOZD\V $OPRVW DOZD\V )LJ %HKDYLRUDO 3URILOH RI (PSOR\HHV 6XSHUYLVRU 5HVSRQVH :RUN *URXS 3ODQW &

PAGE 334

,QWUDJURXS %HKDYLRU 9HUWLFDO 7UXVW DQG &RQILGHQFH 'RZQZDUG 7UXVW DQG &RQILGHQFH 8SZDUG 5HTXHVWHG ,QIRUPDWLRQ &RPPXQLFDWLRQ 6FUHHQLQJ -RE ,QIRUPDWLRQ +XPDQ 5HODWLRQV ,QIRUPDWLRQ &RRSHUDWLRQ DQG 7HDPZRUN $FFHSWDQFH RI 6XSHUYLVRU 'HFLVLRQV $FFHSWDQFH RI +LJKHU /HYHO 'HFLVLRQV $FFHSWDQFH RI 6WDII 'HFLVLRQV ,QWHUJURXS %HKDYLRU &RQILGHQFH DQG 7UXVW &RPPXQLFDWLRQV $FFXUDF\ &RPPXQLFDWLRQV 6FUHHQLQJ ,QIRUPDO &RPPXQLFDWLRQV &RRSHUDWLRQ DQG 7HDPZRUN 7HDP 6SLULW $FFHRWDQFH RI 'HFLVLRQV t ,QWHUDFWLRQ 3DWWHUQV 1HJDWLYH *HQHUDO 3RVLWLYH 5DUHO\ 5DUHO\ 5DUHO\ $OPRVW DOZD\V 5DUHO\ 5DUHO\ 5DUHO\ 5DUHO\ 5DUHO\ 5DUHO\ $OPRVW DOZD $OPR D\ V PRVW DOZD\V 5DU HO\ $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V 9HU\ RIWHQ 9HU\ RIWHQ $OPRVW DOZD\V 1HJDWLYH *HQHUDO 3RVLWLYH $OPRVW DOZD\V D[I-M 5DUHO\ $OPRVW DOZD\V 5DUHO\ $OPRVW DOZD\V L? F $OPRVW DOZD\V Z D Y V )LJ &RQWLQXHG

PAGE 335

1HJDWLYH ,QGLYLGXDO %HKDYLRU -RE ,QYROYHPHQW /RZ &RPPLWPHQW WR 0HHWLQJ 6WDQGDUGV ,QLWLDWLYH /LWW7H 6HOI,PSURYHPHQW /LWWOH :RUN*RDO &RPPLWPHQW DU39 )UXVWUDWLRQ /HYHOV $OPRVW DOZD\V 6HQVH RI $FKLHYHPHQW 5DUHO\ $EVHQWHHLVP $OPRVW DOZD\V 7XUQRYHU f $OPRVW DOZD\V &RQILGHQFH DQG 7UXVW -RE 5HODWHG &RPPXQLFDWLRQ 1RQ-RE 5HODWHG &RPPXQLFDWLRQ &RRSHUDWLRQ 3DWWHUQV *URXS 8QLW\ ,QWHUDFWLRQ RII WKH -RE *HQHUDO 5DUHO\ 3RVLWLYH +LJK $OPRVW DOZD\V +LJK +LJK $OPRVW DOZD\V 5 DUHO r O 1HJDWLYH *HQHUDO 3RVLWLYH ,QWUDJURXS %HKDYLRU /DWHUDO 5DUHO\ $OPRVW DOZD\V 5DUHO\ AHrrrrnA $OPRVW DOZD\V $OPRVW DOZD\V )LJ %HKDYLRUDO 3URILOH RI (PSOR\HHV 6XSHUYLVRU 5HVSRQVH :RUN *URXS 3ODQW &

PAGE 336

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e 5DUHO\ $OPRVW DOZDY 5DUHO\ D7ZDY $OPRVW DOZD\V $OPRVW DOZD\V : )LJ &RQWLQXHG

PAGE 337

,QGLYLGXDO %HKDYLRU -RE ,QYROYHPHQW &RPPLWPHQW WR 0HHWLQJ 6WDQGDUGV ,QLWLDWLYH f r f 6HOI,PSURYHPHQW :RUN*RDO &RPPLWPHQW )UXVWUDWLRQ /HYHOV 6HQVH RI $FKLHYHPHQW $EVHQWHHLVP 7XUQRYHU ,QWUDJURXS %HKDYLRU /DWHUDO &RQILGHQFH DQG 7UXVW -RE 5HODWHG &RPPXQLFDWLRQ 1RQ-RE 5HODWHG &RPPXQLFDWLRQ &RRSHUDWLRQ 3DWWHUQV *URXS 8QLW\ ,QWHUDFWLRQ RII WKH -RE 1HJDWLYH *HQHUDO 3RVLWLYH /RZ 5DUHO\ 5DUHO\ $OPRVW DOZD\V 5DUHO\ $OPRVW DOZD\V $OPRVW +LJK 07AW DOZD\V $OPRV We\ V $OPRVW 5DUHO\ 1HJDWLYH *HQHUDO 3RVLWLYH 5DUHO\ 5DUHO\ 5DUHO\ $OPRVW DOZD\V 5DUHO\ :D\V DOZD\V 5DUHO\ 5DUHO\ $OPR V W DZD\ V $OUQWIW DOZD\V LUQRVW DOZD\V )LJ %HKDYLRUDO 3URILOH RI (PSOR\HHV 6XSHUYLVRU 5HVSRQVH :RUN *URXS 3ODQW & /2 UR !

PAGE 338

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n 1HJDWLYH *HQHUDO 3RVLWLYH 5DUHO\ 5DUHO\ $OPRVW DOZD\V 5DUHO\ 5DUHO\ 5DUHO\ 5DUHO\ 5DUHO\ $OPRVW DOZD\V DLZD\ DOZD\ $OPR IW DOZD\V $OPR V W VF DZDYV )LJ &RQWLQXHG

PAGE 339

,QGLYLGXDO %HKDYLRU -RE nLQYROYHPHQW &RPPLWPHQW WR 0HHWLQJ 6WDQGDUGV ,QLWLDWLYH 6HOIr} ,PSURYHPHQW :RUN*RDO &RPPLWPHQW )UXVWUDWLRQ /HYHOV 6HQVH RI $FKLHYHPHQW $EVHQWHHLVP 7XUQRYHU 1HJDWLYH *HQHUDO 3RVLWLYH /RZ $OPRVW DOZD\V 5DUHO\ $OPRVW DOZD\V ,PRVW DOZDY D UHO\ R ,QWUDJURXS %HKDYLRU /DWHUDO &RQILGHQFH DQG 7UXVW -RE 5HODWHG &RPPXQLFDWLRQ 1RQ-RE 5HODWHG &RPPXQLFDWLRQ &RRSHUDWLRQ 3DWWHUQV *URXS 8QLW\ ,QWHUDFWLRQ RII WKH -RE 1HJDWLYH *HQHUDO 3RVLWLYH 5DUHO\ $OPRVW DOZD\V $OPRVW DZDYV $OPRVW DOZD\V $OPRVW DOZD\V DOZD\V DPRVWaD,ZD\V )LJ %HKDYLRUDO 3URILOH RI (PSOR\HHV 6XSHUYLVRU 5HVSRQVH :RUN *URXS 3ODQW &

PAGE 340

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‘ f§ 5DUHO\ 5DUHO\ $OPRVW DOZD\V )LJ &RQWLQXHG

PAGE 341

,QGLYLGXDO %HKDYLRU -RE ,QYROYHPHQW &RPPLWPHQW WR 0HHWLQJ 6WDQGDUGV ,QLWLDWLYH f f f 6HOI,PSURYHPHQW :RUN*RDO &RPPLWPHQW )UXVWUDWLRQ /HYHOV 6HQVH RI $FKLHYHPHQW $EVHQWHHLVP 7XUQRYHU ,QWUDJURXS %HKDYLRU /DWHUDO &RQILGHQFH DQG 7UXVW -RE 5HODWHG &RPPXQLFDWLRQ 1RQ-RE 5HODWHG &RPPXQLFDWLRQ &RRSHUDWLRQ 3DWWHUQV *URXS 8QLW\ ,QWHUDFWLRQ RII WKH -RE 1HJDWLYH *HQHUDO 3RVLWLYH 1HJDWLYH *HQHUDO 3RVLWLYH 5DUHO\ $OPRVW DOZD\V 5DUHO\ $OPR V W DOZD\V 5DUHO\ $OPRVW DOZD\V 5DUHO\ $OPRVW DOZD\V 5DUHO\ $OPRVW DOZD\V 5DUHO\ $OPRVW DOZD\V  )LJ %HKDYLRUDO 3URILOH RI (PSOR\HHV )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHO 5HVSRQVH :RUN *URXS 3ODQW &

PAGE 342

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e 5DUHO\ $OPRVW DOZD\V $OPRVW DOZD\V 5DHO\ $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW $OPRVW DOZD\V )LJ &RQWLQXHG

PAGE 343

,QGLYLGXDO %HKDYLRU -RE ,QYROYHPHQW ffff &RPPLWPHQW WR 0HHWLQJ 6WDQGDUGV ,QLWLDWLYH 6HOI,PSURYHPHQW :RUN*RDO &RPPLWPHQW )UXVWUDWLRQ /HYHOV 6HQVH RI $FKLHYHPHQW $EVHQWHHLVP 7XUQRYHU 1HJDWLYH *HQHUDO 3RVLWLYH ,QWUDJURXS %HKDYLRU /DWHUDO &RQILGHQFH DQG 7UXVW -RE 5HODWHG &RPPXQLFDWLRQ 1RQ-RE 5HODWHG &RPPXQLFDWLRQ &RRSHUDWLRQ 3DWWHUQV *URXS 8QLW\ ,QWHUDFWLRQ RII WKH -RE 1HJDWLYH 5DUHOY ‘‘ ‘ L n Z VP?‘ A 5DUHO\ 5DUHO\ 5DUHO\ 5DUHOY 5DUH *HQHUDO 3RVLWLYH $OPRVW DOZD\V $OPRVW DOZD\V DOZD\V 7RUQRVW DOZD\V DOZD\V )LJ %HKDYLRUDO 3URILOH RI (PSOR\HHV )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHO 5HVSRQVH :RUN *URXS 3ODQW &

PAGE 344

,QWUDJURXS %HKDYLRU 9HUWLFDO 7UXFW DQG &RQILGHQFH 'RZQZDUG 7UXVW DQG &RQILGHQFH 8SZDUG 5HTXHVWHG ,QIRUPDW LRQ &RPPXQLFDWLRQ 6FUHHQLQJ -RE ,QIRUPDWLRQ f +XPDQ 5HODWLRQV ,QIRUPDWLRQ &RRSHUDWLRQ DQG 7HDPZRUN $FFHSWDQFH RI 6XSHUYLVRU 'HFLVLRQV $FFHSWDQFH RI +LJKHU /HYHO 'HFLVLRQV $FFHSWDQFH RI 6WDII 'HFLVLRQV ,QWHUJURXS %HKDYLRU &RQILGHQFH DQG 7UXVW &RPPXQLFDWLRQV $FFXUDF\ &RPPXQLFDWLRQV 6FUHHQLQJ ,QIRUPDO &RPPXQLFDWLRQV &RRSHUDWLRQ DQG 7HDPZRUN 7HDP 6SLULW $FFHSWDQFH RI 'HFLVLRQV ,QWHUDFWLRQ 3DWWHUQV f 1HJDWLYH *HQHUDO 3RVLWLYH 5DUHO\ 5DUHO\ $OPRVW DOZD\V 5DUHO\ 5DUHO\ 5DUHO\ 5DUHO\ $OPRVW DOZD\V 5DUHO\ 9HU\ RIWHQ 5DUHO\ 6 $OPRVW DOZD\V $OPRVW DOZD\V W DOZD\V HL\ RIWHQ 1HJDWLYH *HQHUDO 3RVLWLYH 5DUHO\ 5DUHO\ $OPRVW DOZD\V 5DUHO\ 5DUHO\ 5DUHO\ 5DUHO\ $OPRVW DOZD\VB PRBVW DOZD\V 5DUHO\ $OPRVW DOZD\V $OPRVW DOZD\V ZD\V $OPRVW DOZD\V )LJ &RQWLQXHG

PAGE 345

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f,f $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V PRVW DOZD\V $OPRVW DOZD\V n )LJ %HKDYLRUDO 3URILOH RI (PSOR\HHV )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHO 5HVSRQVH :URUN *URXS 3ODQW &

PAGE 346

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

PAGE 347

,QGLYLGXDO %HKDYLRU N} a ‘ A f§ P B D P \A7r f§ UL B f§ M -RE ,QYROYHPHQW &RPPLWPHQW WR 0HHWLQJ 6WDQGDUGV ,QLWLDWLYH 6HOIrr ,PSURYHPHQW :RUN*RDO &RPPLWPHQW )UXVWUDWLRQ /HYHOV 6HQVH RI $FKLHYHPHQW $EVHQWHHLVP 7XUQRYHU 1HJDWLYH *HQHUDO 3RVLWLYH /RZ 5DUHO\ /LWWOH /LWWOH 5DUHO $OPRVW DZD\V 5DUHO\ $OPRVW DOZD\V $OPRVW DOZD\V +LJK PRVW DOZD\V +LJK +LJK $OPRVW DOZD\V ,QWUDJURXS %HKDYLRU /DWHUDO &RQILGHQFH DQG 7UXVW -RE 5HODWHG &RPPXQLFDWLRQ 1RQ-RE 5HODWHG &RPPXQLFDWLRQ &RRSHUDWLRQ 3DWWHUQV *URXS 8QLW\ ,QWHUDFWLRQ RII WKH -RE 1HJDWLYH *HQHUDO 3RVLWLYH 5DUHO\ 5DUHO\ 5DUHO\ 5DUHO\ $OPRVW DOZD\V $OPRVW Vn \V VW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V )LJ %HKDYLRUDO 3URILOH RI (PSOR\HHV )RUHPHQ DQG 2WKHU 6DODULHG 3HUVRQQHO 5HVSRQVH :RUN *URXS 3ODQW &

PAGE 348

UDJURXS %HKDYLRU 9HUWLFDO 7UXVW DQG &RQILGHQFH 'RZQZDUG 7UXVW DQG &RQILGHQFH 8SZDUG 5HTXHVWHG ,QIRUPDWLRQ &RPPXQLFDWLRQ 6FUHHQLQJ -RE ,QIRUPDWLRQ +XPDQ 5HODWLRQV ,QIRUPDWLRQ &RRSHUDWLRQ DQG 7HDPZRUN $FFHSWDQFH RI 6XSHUYLVRU 'HFLVLRQV $FFHSWDQFH RI +LJKHU /HYHO 'HFLVLRQV $FFHSWDQFH RI 6WDII 'HFLVLRQV ,QWHUJURXS %HKDYLRU &RQILGHQFH DQG 7UXVW &RPPXQLFDWLRQV $FFXUDF\ &RPPXQLFDWLRQV 6FUHHQLQJ ,QIRUPDO &RPPXQLFDWLRQV &RRSHUDWLRQ DQG 7HDPZRUN 7HDP 6SLULW $FFHSWDQFH RI 'HFLVLRQV ,QWHUDFWLRQ 3DWWHUQV 1HJDWLYH *HQHUDO 3RVLWLYH 5DUHO\ 5DUHO\ 5DUHO\ $OPRVW DOZD\V 5DUHO\ 5DUHO\ 5DUHO\ 5DUHO\ 5DUHO\ 5DUHO\ $OPRVW DOZD\V W DOZD\V PRVW DOZD\V $OPRVW D LRV/ DOZD\V $OPRVW DOZD\V 9HU\ RIWHQ 9HU\ RIWHQ $OPRVW DOZD\V 1HJDWLYH *HQHUDO 3RVLWLYH 5DUHO\ 5DUHO\ 5DUHO\ 5DUHO\ 5DUHO\ 5DUHO\ $OPRVW DOZD\V $OPRVW DOZD\V 5DUHO\ $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V $OPRVW DOZD\V )LJ &RQWLQXHG

PAGE 349

6(/(&7(' %,%/,2*5$3+< $UJ\ULV &KULV 7KH ,QGLYLGXDO DQG WKH 2UJDQL]DWLRQ $Q (PSLULFDO 7HVW $GPLQLVWUDWLYH 6FLHQFH 4XDUWHUO\ ,9 f %DOHV 5 ) DQG %RUJRWWD ( ) 6L]H RI *URXS DV D )DFWRU LQ WKH ,QWHUDFWLRQ 3URILOH 6PDOO *URXSV (GLWHG E\ $ 3 +DUH ( ) %RUJRWWD DQG 5 ) %DOHV 1HZ
PAGE 350

A *RX FOQHU $ : 3DWWHUQV )UHH 3UHVV f *XOODKRUQ -RKQ ff'LVWDQFH DQG )ULHQGVKLS DV )DFWRUV LQ WKH *URVV ,QWHUDFWLRQ 0DWUL[f 6RFLRPHWU\ ;9 f +DPPRQG /HR DQG *ROGPDQ 0RUWRQ ff&RPSHWLWLRQ DQG 1RQ&RPSHWLWLRQ DQG ,WV 5HODWLRQVKLS WR ,QGLYLGXDO DQG *URXS 3URGXFWLYLW\f 6RFLRPHWU\ ;;,9 f R +DUH 3DXO $ 6WXG\ RI ,QWHUDFWLRQ DQG &RQVHQVXV LQ 'LIIHUHQW 6L]HG *URXSVf $PHULFDQ 6RFLRORJLFDO 5HYLHZ ;9,, -XQH f OOXOLQ &KDUOHV / DQG %ORRG 0 5 ff-RE (QODUJHPHQW ,QGLYLGXDO 'LIIHUHQFHV DQG :RUNHU 5HVSRQVHVf 3V\FKRORJLFDO %XOOHWLQ /;,; 1R f ,QGLN %HUQDUG 3 6RPH (IIHFWV RI 2UJDQL]DWLRQDO 6L]H DQG 0HPEHU 3DUWLFLSDWLRQ 6RPH (PSLULFDO 7HVWV RI $OWHUQDWLYH ([SODQDn WLRQVf +XPDQ 5HODWLRQV ;9,,, 1RYHPEHU f .HOO\ +DUROG DQG 7KLERXW -RKQ ff([SHULPHQWDO 6WXGLHV RI *URXS 3UREOHP 6ROYLQJ DQG 3URFHVVf +DQGERRN RI 6RFLDO 3V\FKRORJ\ (GLWHG E\ /LQG]H\ 5HDGLQJ 0DVV $GGLVRQ:HVOH\ /DXUHQFH 3DXO 5 DQG /RUVFK -D\ : 2UJDQL]DWLRQ DQG (QYLURQPHQW +RPHZRRG ,OO 5LFKDUG ,UZLQ ,QF RI ,QGXVWULDO %XUHDXFUDF\ *OHQFRH ,OO 5 f$Q (PHUJLQJ 7KHRU\ RI 2UJDQL]DWLRQ /HDGHUVKLS DQG 0DQDJHn PHQWf /HDGHUVKLS DQG ,QWHUSHUVRQDO %HKDYLRU (GLWHG E\ / 3DWUXOOR DQG % %DVV 1HZ
PAGE 351

0LOOHU / .HLWK DQG +DPEOLQ 5REHUW / ,QWHUGHSHQGHQFH 'LIIHUHQWLDO 5HZDUGLQJ DQG 3URGXFWLYLW\ $PHULFDQ 6RFLRORJLFDO 5HYLHZ ;;9,,, f 3DWWHUVRQ 0LOHV 6SDWLDO )DFWRUV LQ 6RFLDO ,QWHUDFWLRQV +XPDQ 5HODWLRQV ;;, f 3HWHUVRQ 5LFKDUG $ DQG 5DWK 0LFKDHO 6WUXFWXUDO 'HWHUPLQDQWV RI 3LHFHZRUN 5DWHV ,QGXVWULDO 5HODWLRQV ,9 f 3RUWHU /\PDQ : DQG /DZOHU (GZDUG ( ,,, 3URSHUWLHV RI 2UJDQLn ]DWLRQDO 6WUXFWXUH LQ 5HODWLRQ WR -RE $WWLWXGHV DQG -RE %HKDYLRU 3V\FKRORJLFDO %XOOHWLQ /;,9 -XO\ f 5HYDQV 5 : +XPDQ 5HODWLRQV 0DQDJHPHQW DQG 6L]H +XPDQ 5HODn WLRQV DQG 0RGHUQ 0DQDJHPHQW (GLWHG E\ ( 0 +XJK -RQHV &KLFDJR 4XDQGUDQJOH %RRNV 5LFKDUGV &DUD % DQG 'RE\QV +HQU\ 7RSRJUDSK\ DQG &XOWXUH 7KH &DVH RI WKH &KDQJLQJ &DJH +XPDQ 2UJDQL]DWLRQ ;9, 1R f 6HO]QLFN 3 79$ DQG WKH *UDVV 5RRWV %HUNHOH\ 8QLYHUVLW\ RI &DOLIRUQLD 3UHVV f 6KHSDUG -RQ 0 )XQFWLRQDO 6SHFLDOL]DWLRQ DQG :RUN $WWLWXGHV ,QGXVWULDO 5HODWLRQV 9,,, 1R f 6KHULI 0X]DIHU :KLWH % DQG +DUYH\ 6WDWXV LQ ([SHULn PHQWDOO\ 3URGXFHG *URXSV $PHULFDQ -RXUQDO RI 6RFLRORJ\ /; f 6ODWHU 3KLOLS ( &RQWUDVWLQJ &RUUHODWHV RI *URXS 6L]H 6RFLRPHWU\ ;;, f 6RPPHU 5REHUW )XUWKHU 6WXGLHV LQ 6PDOO *URXS (FRORJ\ 6RFLRPHWU\ ;;9,,, f 6PDOO *URXS (FRORJ\ 3V\FKRORJLFDO %XOOHWLQ /;9,, f 6WHGU\ $QGUHZ & DQG .D\ (PDQXHO 7KH (IIHFWV RI *RDO 'LIILFXOW\ RQ 3HUIRUPDQFH $ )LHOG ([SHULPHQW %HKDYLRUDO 6FLHQFH ,, f 6WHLQ]RU %HUQDUG 7KH 6SDWLDO )DFWRU LQ )DFH WR )DFH 'LVFXVVLRQ *URXSV -RXUQDO RI $EQRUPDO 3V\FKRORJ\ ;/9 f :DONHU $UWKXU + DQG /RUVFK -D\ : 2UJDQL]DWLRQDO YV )XQFWLRQ +DUYDUG %XVLQHVV 5HYLHZ ;/9, &KRLFH 3URGXFW f :DONHU &KDUOHV 5 DQG *XHVW 5REHUW + 7KH 0DQ RQ WKH $VVHPEO\ /LQH &DPEULGJH 0DVV +DUYDUG 8QLYHUVLW\ 3UHVV :RUWK\ -DPHV & 2UJDQL]DWLRQDO 6WUXFWXUH DQG (PSOR\HH 0RUDOH $PHULFDQ 6RFLRORJLFDO 5HYLHZ ;9 $SULO f

PAGE 352

:\DWW 6 DQG /DQJGRQ 1 )DWLJXH DQG %RUHGRP LQ 5HSHWLWLYH :RUN /RQGRQ +062 5HSRUW 1R SS =LOOHU 5REHUW & *URXS 6L]H $ 'HWHUPLQDQW RI WKH 4XDOLW\ DQG 6WDELOLW\ RI *URXS 'HFLVLRQV 6RFLRPHWU\ ;; f

PAGE 353

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

PAGE 354

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

PAGE 355

, FHUWLI\ WKDW KDYH UHDG WKLV VWXG\ DQG WKDW LQ P\ RSLQLRQ LW FRQIRUPV WR DFFHSWDEOH VWDQGDUGV RI VFKRODUO\ SUHVHQWDWLRQ DQG LV IXOO\ DGHTXDWH LQ VFRSH DQG TXDOLW\ DV D GLVVHUWDWLRQ IRU WKH GHJUHH RI 'RFWRU RI 3KLORVRSK\ 5DOSK M\ 7KRPSVRQ 3URIHVnVRU RI 0DUNHWLQJ 7KLV GLVVHUWDWLRQ ZDV VXEPLWWHG WR WKH 'HSDUWPHQW RI 0DQDJHPHQW LQ WKH &ROOHJH RI %XVLQHVV $GPLQLVWUDWLRQ DQG WR WKH *UDGXDWH &RXQFLO DQG ZDV DFFHSWHG DV SDUWLDO IXOILOOPHQW RI WKH UHTXLUHPHQWV IRU WKH GHJUHH RI 'RFWRU RI 3KLORVRSK\ $XJXVW 'HDQ *UDGXDWH 6FKRRO

PAGE 356

81,9(56,7< 2) )/25,'$

PAGE 357

XVHRIPXOWLYDULDW22HQJO +