The social contagion effect

hese are the main operational areas with the aim of achieving core purposes. This structure was introduced in June 1978 in England and it reflects the new responsibilities, the U.K. Banks have to undertake as per the provisions of Bank of England Act. The Apex body in the structure of Bank of England is the court of Directors. According to provisions of the Banking Regulation Act of England and rules made there under, the functions of court of Directors are as follows:

• The court of Directors of the Bank is responsible in framing the rules, regulations and procedures that are to be followed by monetary policy committee.
• It determines the methodology of collecting necessary data and information’s with which the monetary policy committee formulate the various monetary policies for the economic development of the country.
• According to section 3 of the Act, the court of Directors of the Bank can delegate some of their authorities to sub committees, to enable them function freely and independently.

A. Monitory Policy Committee

It is a nine member committee. Out of those nine members, five members are internal members permanently employed. They are all employees of the Bank and such employees are:

• Governor
• Two Deputies of the Banks
• The Chief Economists
• The head of markets

The monetary policy committee operates on a monthly cycle basis. This is essentially because, according to the provisions of the Act and rules made there under, the committee should meet and setup the interest rates every calendar month. In fixing the interest rates the committee would consider various aspects and will have discussion in the meeting.

Monetary Analysis Division:

Monetary Analysis division ‘MA’ works under the control of monetary policy committee. The main function of this division is to provide information by conducting economic analysis to the MPC.The economist conducts research and analysis of current and prospective development not only in U.K. but also the world at large. It produces periodical inflation report. It helps the monetary policy committee in assessing current monetary and economic situations in th

Sample Solution

The social contagion effect What is the transformational leadership approach? Transformational leadership is defined as a leadership approach that causes change in individuals and social systems. In its ideal form, it creates valuable and positive change in the followers with the end goal of developing followers into leaders. Enacted in its authentic form, transformational leadership enhances the motivation, morale and performance of followers through a variety of mechanisms. These include connecting the follower`s sense of identity and self to the mission and the collective identity of the organization; being a role model for followers that inspires them; challenging followers to take greater ownership for their work, and understanding the strengths and weaknesses of followers, so the leader can align followers with tasks that optimize their performance.