Managerial Economics Essay

Q.1.0) For each of the following events, assume that either the supply curve or the demand curve (not both shifted). Explain which curve shifted and indicate the direction of the shift. a.From 1950 to 1979 the wages paid to fruit pickers increased while the number of fruit pickers employed decreased. b.During the same period the price of radio sets declined, while the number of radio sets purchased increased. c.Housing prices are rising but more houses are sold. d.Australian Airlines reduces its average plane fare by 30 percent in order to attract more customers. Ans. a) In this case the number of the fruit pickers has decreased while the wages of the fruit pickers has increased. Thus, the demand has not changed. The supply of the fruit pickers has decreased, hence, the fruit pickers supply has shifted to the left. b) In this case the price of the radio sets declined while the number of radio sets purchased increased. This means the demand has increased. The demand curve has shifted to the right. c) In this case the housing prices are rising but more houses were sold. The demand of the houses has increased. The demand curve has moved to the right. d) In this the Australian Airlines reduces its average plane fare by 30 percent in order to attract more customers. The aim here is increase the revenue in the future. The supply is been increased to accommodate the increasing customers. The supply curve is moved to the right. Q.2.0) Explain the meaning of elasticity? What are the different types of elasticities? What are the factors that affect each type of elasticity? Of what use are these elasticities to business? Ans. Elasticity is a measure of the responsiveness of one variable to changes in another variable; the percentage change in one variable that arises due to a given percentage change in another variable. The Elasticity is one of the important factors to measure the market condition, the market character and depicts a comprehensive picture of the supply, demand relation. The different types of Elasticities are Own price elasticity, cross-price elasticity, income elasticity and other elasticity such as own advertisement elasticity and cross-advertisement elasticity. 2.1. Own price elasticity: A measure of the responsiveness of the quantity demanded of a good to a change in the price of that good; the percentage change in quantity demanded divided by the percentage change in the price of the good. EdQx, Px Percentage change in quantity demanded = %∆Qdx = Percentage change in price of the good %∆Px The Own price elasticity of demand is measured in terms of its absolute value, if the absolute value is greater than one (1) is said to be elastic, if the absolute value is less than one (1) is said to be inelastic and if the absolute value is equal to one (1) is said to be unitary. 2.1.1 Elastic demand: Demand is Elastic if the absolute value of the own price elasticity is greater than 1. │EdQx,Px│> 1 This means that the percentage change in the quantity demanded is more than the percentage change in the price of the good. Generally, the demand is elastic for consumer goods. The important point is when the total revenue increases (decreases) as a result of a fall (rise) in price, demand is elastic. 2.1.2 Inelastic demand: Demand is inelastic if the absolute value of the own price elasticity is less than 1. │EdQx,Px│< 1 This means that the percentage change in the quantity demanded is less than the percentage change in the percentage change in the price of the good. The demand is elastic for the daily requirement goods, specialty goods. The important point is when the total revenue decrease (increases) as a result of a fall (rise) in price, demand is inelastic. 2.1.3 Unitary elastic demand: Demand is unitary elastic if the absolute value of the own price elasticity is equal to 1. │EdQx, Px│= 1 This means that the percentage change in the price is equal to the percentage change in quantity demanded of the good. As the percentage change in price is equal to the percentage change in the quantity demanded, the total revenue does not change as price changes. 2.1.4 Perfectly elastic demand: A condition in which a small percentage change in price brings about an infinite percentage change in quantity demanded. │EdQx, Px│= ∞ 2.1.5 Perfectly inelastic demand: A condition in which the quantity demanded does not change as the price changes. │EdQx, Px│= 0 2.1.6 Influencing factors: The price elasticity is determined the following factors, the availability of the substitutes, time factor and the expenditure share of the product in consumer’s budget. * Availability of viable options: The price elasticity is very much influenced by the availability of substitutes. The price elasticity is greater when the substitutes are more. This is because of the wider choices consumer has. The minimal changes in the price of one good will result immediate shift of the demand to the other good. The elasticity for the broadly defined commodities tends to be more inelastic than the demand for specific commodities. This is because the specific products are demanded on the basis of the consumer’s tastes, preferences, likes, passion and need. * Time factor: The time factor influences the character of the demand of the good. In general, the availability of time allows the consumer to pursue the substitutes, which eventually results in the decline of the demand for the good whose price has increased. In short time, the demand is more likely to be inelastic for the reason that the consumer will not be able to find the substitutes. *Expenditure on the product: The amount spent by the consumer on a particular product determines the character of the demand elasticity of the product. The products on which the consumer spends fewer amounts are likely to be inelastic conversely the products on which the consumer spends large amount are likely to be elastic. This is because the slightest increase in their prices would have a great impact on the consumer’s budget. 2.1.7 Uses to the business: The own price elasticity is very much essential to the business to analyze the market and further to formulate the strategies to gain maximum benefit from the given situation. The price elasticity enables the firm to asses the relationship between the price of its product and the demand. The firm can be able to gauge the relationship between their products and other products in the market. This helps the firm to identify which are the competing products and complementing products. The firm by assessing the price elasticity can be able to define fine price strategies, promotion strategies and as well can contemplate about the synergies with the other firms whose products are in complementary relationship with the firm’s products. 2.2 Income elasticity: A measure of the responsiveness of the demand for a good to changes in consumer income; the percentage change in quantity demanded divided by the percentage change in income. EmQx, M Percentage change in quantity demanded %∆Qdx = Percentage change in the consumer income = %∆M If EmQx, M > 0, then X is a normal good, an increase in income leads to an increase in the consumption of X. If EmQx, M < 0, then X is an inferior good, an increase in income leads to a decrease in the consumption of X. 2.2.1 Influencing factors: The important factors influencing this elasticity are the income level of the consumers and the nature of the product. If the product is not having the perceived value or not having the perceived image, the product will be purchased more when the income level of consumer decreases conversely the products will be purchased less when the income level of the consumer increases. 2.2.2 Uses: The firms will be able to identify their product’s perceived  value. This assists the firms to modify their product’s features, promote well or position their product well in the market. In general, the firms are interested in making their products a normal good, the demand increases with the increase in the income level of the consumer. This elasticity helps the firms to define their pricing strategy to suit the consumer’s perceived value. 2.3 Cross-price elasticity: A measure of the responsiveness of the demand for a good to changes in the price of a related good; the percentage change in the quantity demanded of one good divided by the percentage change in the price of a related good. EdQx, Py = Percentage change in quantity demanded of one good = %∆Qdx Percentage change in price of related good %∆Py This elasticity helps in understanding the relationship between two goods. This elasticity explains whether two goods are complement or substitute to each other. If EdQx, Py > 0, the two goods are substitutes to each other, the larger the positive coefficient, the greater the substitutability between the two goods. If EdQx, Py < 0, the two goods are complement to each other, the larger the negative coefficient, the greater the complementary relationship between the two goods. The important point is the sign of the coefficient is important when mentioning the Cross-price elasticity. 2.3.1 Influencing factors: The close relationship between the products has a great impact on the elasticity. If the product has many competing or substitutes which offer similar benefits mix, the demand changes highly even with a minor changes in the price of the product or the changes in the price  of the substitutes. This elasticity is also influenced by the price of the complementing products; if the price of the complementing products increases (decreases) the demand for the firm’s product decreases (increases). 2.3.2 Uses: This helps the firms to handle the competition by formulating a well defined pricing strategy. The firms will be able to assess the relationship with the other products. The firms can identify the competing as well complementing products in the market. The demand of the product is highly influenced by the competing and contemplating product’s price. The firm by assessing the cross-price elasticity will be able to handle the competition and as well can form synergies with the firms offering complementary products. This will enable the firms to operate efficiently in the market. 2.4 Price elasticity of supply: The ratio of the percentage change in the quantity supplied of a product to the percentage change in its price. Es = percentage change in quantity supply = %∆Qsx percentage change in price %∆P Es > 1, elastic supply, the percentage change in quantity supply is more than the percentage change in price. Es < 1, inelastic supply, the percentage change in quantity supply is less than the percentage change in price. Es = 1, unitary elastic, the percentage change in quantity supply is equal to the percentage change in price. 2.4 Influencing factors: The influencing factors are the price of the product, the nature of the market. The ultimate objective of the firm is to make maximum profits, the firm will supply according to the rise in price and demand in the market to gain optimum profits. 2.5 Uses: This elasticity helps the firms to strike a balance among the price of the product, demand and supply of the product. This also helps the firms to define their production and supply str0ategy so as to address the given situation. Q.3.0) Read the New Economy Index dealing with the effects of internet and increased competition on business competition (http://www.neweconomyindex.org/section1_page06.html). a. List factors that are said to be driving the increased competition between firms? Do these factors suggest that the structures of the markets in which firms operate are taking on more of the characteristics of the perfectly competitive market structures? b. Is there information on these pages that gives an indication of whether increased competition is having an effect on the profitability of the firm? Ans. a) The factors that are said to be driving the increased competition between the firms are: i. Emergence of global market place. ii. The number of increased firms. iii. Technology that makes the entry easy for new entrants. iv. Ever increasing from securities markets to increase shareholders value. v. Frenetic atmosphere of mergers. vi. Increased number of large institutional investors. Yes, these factors suggest that the structures of the market are taking on more of the characteristics of the perfectly competition. The major  characteristics are the increased number of firms, more number of players. The easy entry for the new entrants suggests that the market is not having any entry barriers. b) Yes, the information on these pages indicates the effect of the competition on the profitability of the firms. The average price mark-up over the cost ration in manufacturing in United States had declined from about 19 percent in 1970 to 15 percent between 1980 and 1992. Q.4.0) Evaluate the economic case for economic integration in either South Asia or ASEAN region (chose the region which you live). Will this be beneficial for your country? Why or why not? Ans. I am from India and India is an active participant in South Asian regional development and welfare programs. The economic integration is an important factor influencing the prosperity of the nations worldwide. The economic integration is one most successful tool exploited by many countries to gain economic benefits and welfare. The movement of South Asian countries; India, Pakistan, Bangladesh, Nepal, Sri Lanka, Bhutan and Maldives towards the economic integration in the South Asian region will be a big step towards their economic welfare. The India has already signed Free Trade Agreement (FTA) with Thailand, one more similar agreement with Association of South East Asian Nations (ASEAN) and another trade agreement with Singapore in early next year. This is the initiative taken by India to bring close the nations of this part of the world and leap towards the economic integration. The developed have already formed their Regional Trade Agreement (RTA) such as North American Free Trade Agreement, European Union accord. The South Asian countries must formulate a similar platform to present their argument with one consented voice and craft own free trade agreement to counter the  growing competition from these countries. According a world bank report the success of the RTA is that the RTA were successful in eliminating the trade barriers thus, paving way for the free flow of goods and services, which ultimately benefits the masses. The trade barriers segment the market, restricts the free flow of goods, service, investments, development schemes which call for a joint venture. Therefore wide range policy measures are required to facilitate the economic integration. A direct shift from closed to open regionalism will enable the countries to operate in more liberal market. The increased relations between the nations allows the free flow of ideas, fosters alternative thinking and exchange of technology. In a liberal trade regime, the South Asian countries will reap benefits in terms increased volume of trade, larger investments and increased production but, also the new technologies which were hitherto unknown at work place. India, with a one fifth of worlds population has been successful in gearing the interaction between the South Asian countries, has a larger part to play and as well the biggest beneficiary from the economic integration in this region. There are some competitive complications in the integrations. Most of the countries are having rivalry among them as they offer similar products to the international market. India and Sri Lank compete in agro-products; tea, coffee, rubber and jute, Malaysia and Singapore in clothing, Japan and South Korea in electronics. At present the integration trade among SAARC is less than 5 percent, where as it is 55 percent in European Union countries and 65 percent in North American countries. The trade between India and Pakistan is currently at US$ 251; with the integration trade it would go up to US$ 4 billion. Q.5.0) What is a market failure? What are the different types of market failures? Discuss and give an example. Ans. The situation in which the following characteristics developed in the market is termed as Market failure. The different types of market failures are Market power Externalities Public goods Incomplete information 5.1 Market power: The ability of a firm to set its price above marginal cost. The main aim of the government is to create a perfect competition in the market. But, many a times it is not possible. There always exist some firms who have an advantage over the other firms operating in the same industry. These firms gain sustainable competitive advantage by having larger market share, high technology, competitive market position and/or financial support. The firm which has sustainable competitive advantage will exercise power to influence the market prices. The firm will keep its price higher than the marginal cost, the resources required to produce that unit good, thus decreasing the social welfare. The government will intervene in these instances to regulate these firms to increase the social welfare. When the firms exercise the market power, the social welfare will minimize, the consumer has to pay more than the cost incurred by the producer to produce that extra unit. The government formulates certain laws to avert the concentration in the market, which eventually results in Market power. In most of the countries, the governments formulate laws to control the formation of market power by legislating antitrust policy and price regulation. Example: The formation of a monopoly is a clear case of market power. Most of the firms attempt to build a monopoly. In monopoly market, the entry is restricted and the firms can charge high price than the marginal cost. In the above figure it shows the monopolist’s demand, marginal cost, and marginal cost and marginal revenue curves. In a perfect competitive market all the consumers are charged similar. But, in this case the monopolist charges PM price for the profit maximizing out put units of QM. At this price the consumer is pays higher amount for the last unit produced than the cost to produce it. Total social welfare in monopoly is the sum of producer and consumer surplus, the region W in the above figure. The triangle ABC represents the dead weight loss. 5.1.1 Antitrust policy: Government policies designed to keep firms from monopolizing their markets. The main aim of the antitrust policy is to eliminate the dead weight loss and discourage the mangers to exercise price-fixing agreements and other collusive practices by declaring it as an illegal to foster monopoly. The first successful antitrust act was used against United States and Trans-Missouri Freight Association agreement, which the Supreme Court declared as illegal. Standard Oil of New Jersey along with Standard Oil of Ohio was charged with attempting to fix the prices of petroleum products and the prices at which the products would be shipped. Standard Oil, in particular, was accused of numerous activities designed to enhance monopoly. 5.1.2 Price regulation: In many instances a single firm may be able to service the market or the  government may wish to allow the firm to practice monopoly. When the economies of scale are larger, the government may allow the firm to practice monopoly but choose to regulate the price of the firm’s products. Example: In India, the government has allowed the Maruti Udyog Ltd., au automobile manufacturing firm, to practice monopoly in small car segment till 1998. This was mainly to support this PSU, to gain the strength in the market and as was the capacity of the firm was made to address the demand of the market. Even though the Maruti was the only car manufacturer in the small car segment, the government has practiced strong price regulation in order to eliminate the dead weight loss. Regulating a Monopolist’s price at the Socially Efficient Level 5.2 Externalities: Effects on the third party who is not the part in decision making process is termed as the Externalities. There are two types of externalities; positive externalities and negative externalities. 5.2.1 Positive externalities: The benefits are received by the party which is not involved in the production or consumption of a good. Example: The benefits of the immunization of the public, which eventually leads to building a health society, benefits all the people irrespective of their participation in the process. The government programs aiming at imparting education to every one leads to the building a knowledgeable society. This initiative benefits the whole nation. 5.2.2 Negative externalities: The costs borne by parties who are not involved in the production or consumption of a good. Example: The pollution in the air, water and soil. The public in general suffers with out directly involving in the process. The society will be bearing some costs of this damage to the environment, but eventually the  impact will on everyone. 5.2.3 The Clean Air Act: The Clean Air Act was formed to address the much devastating issue of the pollution. The new act covers the industry which releases over 10 tons per year of any of the listed pollutants or 25 tons per year of any combination of those pollutants. The firms under this act are required to obtain permit to pollute. The permit is issued to the industry on the basis of its nature, level of pollution in that area and the calculated level of pollution that would be emitted by the firm at a fee. The act also supports the new entrants to find efficient ways to decrease the pollution in the industrial process. The Act’s another important feature is, a firm can sell its limit to the other firm if the firm has lower level pollution than the permitted level. This is to encourage the firms to find the new ways to minimize the pollution in their firms. 5.3 Public goods: A good that is nonrival and nonexclusionary in consumption. Public goods are the goods, which can be consumed by everyone. The goods are not paid by any one or the benefits are received by everyone. These benefits cannot be allocated to any single person; clean air, sunlight etc. In general, if no one pays for these goods, as everyone along with the purchaser will be benefited. Thus, there is little or no major incentive for the purchaser. This very factor leads to free ride phenomenon. 5.3.1 Nonrival consumption: A good is nonrival in consumption if the consumption of the good by one person does not preclude other people from also consuming the good. Example: street lights, public parks, radio signals, national defense. 5.3.2 Nonexclusionary consumption: A good or service is nonexclusionary if,  once provided, no one can be excluded from consuming it. Example: clean air, roads. It would be advantageous for a firm to contribute to public goods in its market place to create goodwill in the market. The same thing goes with the individuals as well. The benefit arising from paying for the public good is not exclusive for any individual, thus everyone would be willing not to pay for them, which eventually results in failure of the market in providing public goods. In conclusion, if the firm’s goal is to maximize profits, the last dollar spent on contributions to public projects should bring in one additional dollar in revenue. 5.4 Incomplete information: The information about the product and services to all the interested parties is important for the market to operate efficiently. The participants must have good knowledge about the product or service’s features, price, benefits, the risks and the available technologies. The incomplete information will eventually result in inefficiencies in the market functioning, usage and the firm’s output. The severe causes of market failure are asymmetric information, a situation where some market participants have better information than others. The presence of asymmetric information can lead buyers to refuse to purchase from sellers ort of fear that the seller is attempting to dump the product because it worth less than they are willing to pay and in some cases, may lead to the market collapse. The government has formulated policies to address this issue. 5.4.1 Rules Against Insider Trading: The regulation to avert the asymmetric information problem is by formulating rules against insider trading. The insiders will have more information about the company; can take better decisions about its stock trading. This if continues, the traders may reject the company’s shares. There will be little or no chance to the outsiders in the market which is dominated by the insiders; this will eventually result in market failure. To prevent insider trading form destroying the market for financial assets, the government has enacted rules against insider trading. The regulation is in Section 16 of the Securities and Exchange Act (1934) and amended in1990 and effective form May 1, 1991. Example: The manger has who has got a better knowledge about the company’s inside information may utilize to gain profits. If the company is contemplating to form a merger which would increase the value of the company, will buy the share in advance and sell them when actually the share value increase after the merger. Thus, gains maximum profits. 5.4.2 Certification: To eliminate the asymmetric information problems, the other devise is the certification. The government issues the certification of authenticity to the product or services after confirming to prescribe standards. This will ensure the consumers to get a fare deal in their transactions. Example: The issue of certification of authenticity by the government to the schools, colleges, industries etc. 5.4.3 Truth in lending: The little or no comprehensive information about the barrowings has resulted in financial crisis across the world. The government has passes legislation on the barrowing and repaying criteria to simplify the issue, Truth in Lending Simplification Act (1980). The truth in lending act affects both the supply and demand of credit. The barrowers have more information about the credit criteria, reduces the risk involved in repayment of the loan. The availability of information to the  barrowers increases the demand, thus, the demand curve for the loans moves towards the right. The suppliers are affected mainly by the increased cost in complying with the government regulations, hence the supply curve of the loan moves towards the left. This movement eventually results in increase in the price of the loan (interest). 5.4.4 Truth in advertising: Advertisement is one of the important means of communicating with the potential and actual buyers. The main aim of the advertisement is to turn viewers into buyers. Under the pressure to push the product in the market, the companies will indulge in providing the false information or too much from too little truth. When the consumers understand this, they will switch to competitor’s product or service. To alleviate this problem the government formulated the truth in advertisement. The main aim of this regulation is to cease the company’s from giving false information and to compensate the consumer who has incurred damages from a misguiding advertisement. 5.4.5 Enforcing contracts: Today’s markets are so dynamic, the relationships changes very quickly. In the attempt to gain the maximum benefit from a given situation, the companies become opportunists. To preserve the best interest of both parties the government has formed enforcing contracts regulation. In most of the instances the end-of-period is a crucial thing. The firms often violate the contract principles to gain instant benefit from a changing situation with out due concern to the other party’s interest. To solve this problem the government has formed Enforcing contracts, requires dishonest people to honor the terms of contracts. 5.4.6 Rent seeking: Selfishly motivated efforts to influence another party’s decision. The government always intervenes into the market in order to avert the market  failure. The government’s aim to intervene the market is to improve the allocation of resources in the economy by alleviating the problems associated with market power, externalities, public goods and incomplete information. The government policies benefits one party at the expense of other party. For this reason the lobbyists send huge amount of money in attempts to influence government policies. Q.6.0) Define CPI and Unemployment. What is the limitations/criticism of the following? a. CPI as a measure of change in prices. b. Unemployment rate as a measure of true employment. Ans. 6.1) The inflation and deflation are the two vital determining factors of the macroeconomics. Inflation: An increase in the general (average) price level of goods and services in the economy. The inflation does not mean that all prices of all products in the economy rise during a given period. Inflation is an increase in the overall average level of prices and not an increase in the price of any specific product. Deflation: A decrease in the general (average) price level of goods and service in the economy. In genera, the deflation is the reduction in the rate of inflation. 6.2 The Consumer Price Index (CPI): An index that measure changes in the average prices of consumer goods and services. The consumer price index is the widely accepted and used scale for measuring the inflation or deflation. The CPI is also called as the cost-of-living index. The CPI will measure the price changes in the consumer goods only. This measurement is considered with the effect of changes in the prices consumer goods on the income of the consumers. In Australia, the Australian Bureau of Statistics (ABS) prepares the CPI. The ABS price collectors contact a sample of retail stores, other businesses supplying consumer products or services, home owners and tenants in Australia’s capital cities, each quarterly. The items included in the market basket are the items used or consumed by a typical urban family, under the category of food & beverage, clothing, housing expenses, transportation, medical care, entertainment and a range of other goods and services. The composition of the market basket generally remains unchanged from one period to the next; hence the CPI is also called as fixed-price index. Computing CPI: CPI = Cost of the market basket of products at current year prices Ãâ€" 100 Cost of the same market basket of products at base-year prices Base year: A year chosen as a reference pint for composition with some earlier or later year. Annual rate of inflation= CPI in given year ─ CPI in previous year Ãâ€" 100 CPI in previous year 6.3 Limitation/criticism of CPI: The CPI as a measure of change in prices has attracted much criticism because of its limitations. The reasons for the change in price are affluent, the computing of CPI does not consider all these factors as it would be  difficult to collect and compile the data. 1. The CPI considers the items consumed by a typical urban family rather than the purchases of the consumers in every area. This very character limits the CPI to present a comprehensive measurement. Even in the family segment, the purchases of different families differ considerably from a typical family, the retired people have different buying criteria, purchases more of medicines and less of children products and the family who have more young children will have different needs. 2. The CPI does not acknowledge the changes in quality which in many instances results in the changes in the prices. Generally, the improving quality or performance of a product costs more to the producer, thus the producer will increase the price, the CPI fails to acknowledge this very fact. The price of television has increased quite highly, but the quality of the picture, sound and the added features are also the new benefits of today’s televisions, the CPI will not take these factors into consideration. 3. The composition of the market basket most of times is unchanged, which results in ignoring the latest trends. The market is more dynamic than ever and every year there are many new and innovative products and service are introduced to the market. The failure to take the changing patterns and preferences, the CPI will not be a comprehensive measure of the change in prices. b) It is very important for every country to assess the unemployment rate. The countries most important and valuable asset is its labor force. The government has to gauge the productivity of its employment force to develop the country. 6.4 Unemployment rate: The percentage of people in the labor force who are without jobs and are actively seeding jobs. The unemployment is not all the people who do not have jobs, but the people who are part of the labor force who do not have jobs or seeking jobs. 6.5 Civilian labor force: The number of people 15 years of age and older who are employed or who are actively seeking a job, excluding those in the armed forced, home makers, students, discouraged workers and other persons not in the labor force. 6.6 Limitations/criticism: The calculation of Unemployment rate has attracted much criticism for limitations to give a comprehensive detail of the employment. The Australian Bureau of Statistics (ABS) computes the unemployment rate in Australia. 1. False response to the ABS survey about the unemployment. The respondents may give false information about their employment. The respondents may give false information about their current position; they might say they are seeking a job even if they are not or employed in illegal activities. This could be because of the benefits of registering oneself as unemployed or job seekers. 2. The official definition of the unemployment understates the unemployment rate by not considering the discouraged workers. Discouraged worker: A person who wants to work, but who has given up searching for work because he or she believes there will be no job offers. After repeated rejections, discouraged workers often turn to their families, friends and possibly other forms of welfare for support. The ABS counts a discouraged worker as anyone who has looked for work within the last six months, but responds that they no longer looking for a job and includes in ‘not in labor’ category. The number of discouraged workers is likely to rise during a recession; the degree of underestimation of the official unemployment rate is thought to increase during a downturn. 3. Another understating of the unemployment rate occurs because the survey treats the part time workers equal to the full time workers. Some of these  part time workers might be willing to go for full time job given a chance. These latter workers are underemployed. Such under-utilization of the employees is great in recession, but is not reflected in the measured unemployment rate.

Chris Peterson at DSS Consulting Essay

Presentation of the Facts Surrounding the Case The case examines a dispute between Meg Cooke, DSS’s COO and Chris Peterson, newly appointed Southwest Region’s team leader. Cooke appointed Peterson a leadership role for one of the newly structured cross-functional teams designated to create a new integrated budget and planning system. The cross functional teams were tasked with building relationships with existing school districts in their regions and provide them a full range of DSS services and to develop new consulting offerings in response to the district’s needs. (Case 2010) Theses goals were created to facilitate a transition to servicing larger districts rather than the smaller districts, which DSS based it past structure around. Peterson was responsible for creating a successful and efficient team within DSS’s reorganization. The team was responsible for designing and creating an integrated budget and planning system with in a time frame of six months. Cooke was updated of the status and objecti ves of the project periodically. The meeting were short and not effective for either party. After the six month deadline was reached Peterson met with Cooke to provide an update on the status of the project her group had been working on. Cooke decided that Peterson’s project would be discontinued, her team would be reorganized and would not be involved in futures product development. Peterson was convinced that her team and project were excellent. Further examination of the case reveals that there may be significant problems related to the company’s transition and Cooke role as COO. Cooke has several deficiencies in the area of leadership, management style, communication, and teamwork and change management. Regarding Peterson, her exemplary team management and teamwork resulted in group-think, causing her team to lose the ability to make unbiased decisions and effectively evaluate possible risks and alternatives. Identification of the Key Issue(s) Many issued are related to the substantial strategic and organizational changes taking place at DSS. Peterson and Cooke have varied perspectives relating to leadership, management style, communication, teamwork, organizational culture, and change management. Cooke’s leadership is characterized by low regard for creating systems for getting the job done  and for creating a satisfying and motivating work environment. The outcome of such leadership style is disorganization, dissatisfaction and disharmony. Collected evidence suggest that Cooke provided very little leadership to Peterson. Peterson and other associates felt anxious for the uncertainty on how the new organizational strategy would unfold. Cooke was only interested in the outcome of what Peterson and her team were working on at the end of the six month period. Cooke did not pose any questions and did not ask for any status updates throughout the projects duration. When Peterson asked for support for her group and the task they were working on, Cooke did not provide any direct action. Other DSS associates felt that Cooke was playing favorites. Cooke did not involve her employs to feel involved and understand the organizations new purpose and determine the production needs. When employees are committed to and have an interest in the organization success, production and moral typically coincide with positive outcomes. This leads to the organization successfully meeting the designated goals. The ability to have employees buy in to desired goals are promoted by an organizational environment based on trust and respect, which leads to high satisfaction and motivation and, as a consequence, high production. ( MindTools). Cooke gave Peterson the ability to choose her own team members, projects, and location of operations. Cooke did so in a passive manner. In the following follow-up meeting Cooke never expressed any objections to Peterson actions and plans, but when she did present a problem concerning the assistance she required form management and other supporting operations, Cooke dismissed her claims by stating that she would provide the needed help at a later time. Peterson’s behavior and management style influenced her team’s performance, while Cooke’s absence of communication and guidance lead to wasted time and resources on a system that did not meet DSS goals. Listing Alternative Courses of Action That Could Be Taken Better communication needs to be created between mid and upper management. Proper communication will lead to a better understanding of the goals desired. Feedback is provided by upward communication, which makes employees feel involved and can help managers to get employees to understand their concerns (Thrilwall, 2012). Cooke and Peterson communicated scarcely and poorly. No regular meeting were scheduled. When the two did communicate  there was no clear and actionable dialogue. Communication is only successful when both the sender and receiver understand the same information as a result of communication ( MindTools, n.d.) Both Cooke and Peterson should establish regular structured communication. This can be accomplished by setting periodic meetings, written updates via e-mail or memos. These meeting will provide downward communication that will allow information to be dispensed to the team working on the projects in question. These meeting will make Peterson and her team feel mor e involved in the direction of the project and it will also keep Cooke abreast of the attitudes and values of her employees. Cooke can defuse any potential problems before they have a negative impact on the group and the project. Cooke’s could adjust her management style. Her methods when dealing with Peterson and her team lead to confusion. Her managerial control and direction were minimal, due the delegation of direction to Peterson, which allowed her to act with maximum freedom. Peterson was allowed to develop a specific product for a small district regardless of the new DSS strategy to refocus its resources on acquiring larger school districts. Cooke needs to focus on redirecting Peterson and her team to achieving the newly desired mission the organization has set in place. That includes providing a direction and strategy which will integrate the individual and the organization ( Thirlwall, 2012). Peterson displayed her ability to effectively act independently. If Cooke would have provided more control pertaining to the direction Peterson and her group were heading the negative outcome could hav e been avoided. Evaluation of Alternative Courses of Action Better communication needs to be created between mid and upper management. Establishing better communication can provide several benefits for DSS. The first, which would be a necessity for any future DSS strategy to be successful would be team building. Team building can transition an organizations culture from cooperation to collaboration. By establishing team environment employees will feel they are a part of something. The feeling of being involved in something increases the effort employees will place in projects and designated task. Better communication also creates a culture of transparency. When companies encourage employees to communicate honestly without fear of repercussions, transparency will transform from an  ideal to a reality. An environment of honesty promotes respect amongst employees. An increase in communication and honesty can cause increased revenue and innovation. Cooke could adjust her management style. Cooke must be willing to make the needed adjustments to improve her management style. She first needs to understand herself. She has to recognize her flaws, not just in the situation with Peterson but her role in DSS organization. She also has to recognize her strengths. Her ability to identify her strengths and weakness will allow her to build a stronger relationship with her employees. The bonds that she can build with her employees and peers will be reflective of her interpersonal communication skills. This reflection will provide insight into areas in the organization and within herself that require improvement. Cooke will need to continually re-evaluate her management style. Being able to realize what works and what doesn’t is key to being an effective manager ( WordPress, 2009) Recommendation of the Best Course of Action The best course of action is for DSS to create a standard outline for communication prior to and during the lifespan of a project. These guidelines should include timing and require length of meetings, scheduled times for updates via e-mail or in person meetings. Also they should provide the specification for any information that needs to be provided to all person involved in the project in question. The information should be pertinent to the status of the project and personal. Also the supply of information should allow as a segue to any questions or concerns by either party. An open dialogue should be the basis of all communication throughout the projects duration. References MindTools, n.d. Blake Mouton Managerial Grid. Retrieved July 20, 2014 from http://www.mindtools.com/pages/article/newLDR_73.htm [Accessed 16 June 2012 MindTools, n.d. Introduction to Communication Skills. Retrieved July 20, 2014 from http://mindtools.com/CommSkll/CommunicationIntro.htm [Accessed 18 June 2012] Organizational Behavior and HRM. Unpublished ed. Emirates Aviation College.Thirlwall, A., 2012. Ineffective leadership in Business, Retrieved from July 22, 2014 btrostle.wordpress.com/2009/11/16/adjusting-your-management-style/

Assessment of the Parenting Problems in Society

Assessment of the Parenting Problems in Society Parents Just Dont Understand Before Will Smith started his big solo career as a rap artist, he and his friend, Jazzy Jeff, had a song called, Parents Just Dont Understand. It was a big hit, particularly for youth. The song was about how parents just didnt understand the trends and the way life was in those days for kids. Smith told about situations he had with his parents and his audience could easily relate to these situations, thus, making the song a hit. Smith was right on track with part of his message. Parents just dont understand. They do not understand that their job as parents is to pay attention to how they raise their children. Though there are parents who do a wonderful job raising their children, many parents neglect their responsibility in child development. In this paper, the following will be discussed: the diversion the government makes in the operation of parental duties when it steps in to discipline a young person, and the parents teaching discipline in values and morals. There are times when government action prevents parents from developing the child themselves. According to Liz Seymour, Los Angeles Times staff writer, one instance involves a high school senior. He was not caught with enough marijuana after being pulled over to receive a citation, but his school decided to transfer him to another school 89 days before graduation (Seymour B2). After his parents took the issue to court and won, the senior stayed and did not transfer. The punishment exceeded the severity of the crime. Why did the school system think that exporting this student would help his life and education? A new school will not solve a drug problem. Another case in St. Petersburg reflects another situation with a school. Greg Hamilton composed an article in the Citrus Times that was about a 13-year-old who refused to attend school. After numerous attempts were taken by the court and his mother to keep the child in school, the problem had not been resolved. The court even went so f ar as to try to reach the child by threatening his mother with jail time if she did not keep him in school. Eventually, the child was placed in juvenile detention for a few days and the mother had a weekend vacation in the pen. Did this action help the childs problem? Though there is no definite answer, the verdict may have been a waste of time. As Hamilton puts it, Where is the line between societys role in the raising of a child and that of the parent? (Hamilton 1). It seems the punishment just covered up the problem instead of correcting it. One question: where is the child now? In response to an editorial in The Columbus Dispatch, Marjorie Renspie voiced her opinion stating that parents should be given the chance to raise their children (12A). The situation involved a teen who had done some things that made him a criminal in societys eyes, and the court sent him to a juvenile detention center in Jamaica. Renspie felt that shipping the delinquent to Jamaica prevented the opportun ity for the parents to work with him. Her main argument was that the key influence a child has is its parents. The parents, in Renspies eyes, were the ones who could help this kid and sending him off would not help at all (12A). The parent should raise the child, not society. Yet, in spite of this great idea, still parents do not do the job. Amongst the obstacles parents encounter while developing their children, they overlook a few things in the process. Parents have neglected teaching their children discipline. In the case of the child who refused to attend school, the mother had neglected to teach her son the importance of school attendance. To fill the gap the parent left, the judges rule was so that they would be accountable for themselves (Hamilton 1). Recall the marijuana senior. His parents had not taught him the dangers of drugs and had not engrained in him the discipline to stay away from drugs. Both instances are examples in which the parents had not done their job and society had to step in. Parents simply need to teach discipline. Along with teaching discipline, parents should attend to teaching values and morals so they are not neglected. Hamilton writes that the people who leave their children to be raised by other adults in such things as Little League, school, and church, expect to have all manner of social graces, work ethic, and values instilled in their kids, and will stand ready to jump on the person if it is not done (Hamilton 1). Hamiltons concept: the parents deliberately neglect their role. Why is it that parents think that they can just get away with doing their job? If they are responsible enough to bring the child into the world, they should be responsible enough to teach it and raise it properly. By teaching values and morals, the child will most likely grow up generally feeling better about who they are. The child values itself, and has a sense of self-worth. No longer will the child feel apt to throw their life around as if it is a joke, rather something of value not to take for granted. In M arjorie Renspies letter to the editor, she claims that using drugs, driving recklessly, taking no responsibility for ones well-being and being a threat to society as well as to ones family are much more serious problems (12A). She was leaning towards the severity of the actions of children in the past. Actions in the past included stealing cars, serious vandalism, and other similar instances. For bad seed youth, the roots to their problems start with the individuals themselves. From there, it branches out to worse things. Both the root and branches can be signs of underdevelopment. Here is where the parent receives a sign telling them their work is not good enough. It is clear that there are times when society gets in the parents way of raising their child, yet in the midst of that, the parent misses the parts of teaching discipline, morals and values. The popular saying goes like this: It takes a village to raise a child. However, the village can get in the parents way and then there are problems. The parent should have the most impact in raising a child. Society can be there for nurturing, but the main job should be done by the parents. And that is what is missing in the world today. Parents are not doing their job.

US-Europe relations Essay Example | Topics and Well Written Essays - 2000 words

US-Europe relations - Essay Example This paper demonstrates an insightful study of the Cold War and its impact on the growing relations between the US and the Europe. Europe is considered to be one of the greatest allies of US in the era of 'war on terrorism' first on Afghanistan and on Iraq.The Cold War played a great role in bringing the two countries together for their economic, geopolitical and security needs. While the Europe wants to remain as a close ally of United States, the United States wants to strengthen Europe to project the country as its strong global partner.Besides studying the impact of Cold War in shaping the economic, social and political relationship between United States and Europe, this paper also provides an overview to the background of the Cold War and the geographic and the strategic importance of the region for the United States and Soviet Union. The cold war was commenced in the late 1940s and ended in the late 1980s. The war broke out as an aftermath of the First and Second World War. Crockatt (1995) states that major cause behind the war was the increasing strength and dominance of United States in the global context after the First World War. The potency of United States and the continuing impuissance of Soviet Union Empire evoked a clash of two forces claiming to be super powers. The contentions between United States and Soviet Union erupted as the two countries began to perceive each others as enemies and competitors in global arena. After the First World War, the United States emerged as the global economic power and this continued to be a source of hostility on the part of the Soviet Union, which faced devastating consequences after the war. Gates (1996) propounds that the World War II further ignited the issue of dominance, which resulted into the debilitation of two giant global economic and geopolitical powers; British and French. Thus, as a consequence, the European rule came to an end and two new powers emerged on the global geopolitical screen; the United States and Soviet Union. The Second World War transformed the global geopolitical scenario as the two previous economic powers tumbled and two new contenders for global superiority emerged on the scene. Hence, the issues between United States and Soviet Union further aggravated and both the countries started to conspire against each other. European region was one of the regions in the world that attracted the grave attention of both the countries. Soviet Union faced imminent threats from the East European region with both the regions sharing the same borders. Leffler (1994) states that as the influence of Soviet Union grew into the East European region, the United States and Western European countries began to perceive it as a threat to their global dominance and security. Furthermore, the United States gave rise to policies curtailing the influence of Soviet Union in the region. In the same breath, the United states promoted its anti-communism policies in order to minimize the Soviet activities around the globe. In the Second World War, mass destructive nuclear weapons were used on the part of all the economic powers. It made other countries join the race for development in nuclear and missile technologies and considered it to be of significant essence to their security concerns. Kissinger (1994) illuminates that the Second World War, which led to the global competition for nuclear weapons, enhanced the potency of United States and accelerated the decline of Soviet Union as a global economic power. Having realized the pre-eminence of being an atomic power, the United States decided to strengthen itself as the giant nuclear power so as to maximize its influence globally. This was all the background of the consequences that led to the beginning of Cold War during 1940s, in which the United States and the Soviet Union remained as prominent players of the game. Walker (1993) expresses that the Cold War was permuted into a political war after the beginning of Korean War, which

Implementing Leadership Change Term Paper Example | Topics and Well Written Essays - 500 words

Implementing Leadership Change - Term Paper Example Objective The main objective of the company is to remain competitive via product development and to focus on innovations. Strategies to Be Followed Two main strategies can be inculcated by Gene One. They are leadership strategy and the training strategy. Leadership has been a key component for determining the success of for-profit as well as non-profit organizations. Gene One has taken the decision of going public via IPO issuance; however lack of knowledge of effective implementation is becoming the challenge for the company. It is leadership strategies through which the company will effectively be able to implement the decisions that have been taken by the management. When such decisions are taken, it becomes important for the company to opt for effective leaders since they can make even the weak business plan a successful one. It is the leaders who will set a proper direction for the followers and thus help to visualize the goals to be achieved (Mills, 2005). The leaders at Gene O ne needs to have a proper vision of what is to be achieved. He further needs to assume the risk of loss as well as failure and thus formulate his strategies accordingly.

I will explain it in the instructions Essay Example | Topics and Well Written Essays - 500 words - 1

I will explain it in the instructions - Essay Example   Therefore, authorizing euthanasia results to doctor-assisted death of non-critical casualties1. Conservatives like in America wants a dominion on the world .Only if Americans synergetic ally work tough, and attain the potential, then they reign as the only cost-effective and martial superpower. Other countries will befriend them, work with us and trade with them but cannot manage to contest with them, whereas, liberals don’t want the nation to be much successful as such1. Liberals  consider the action of the state governance to provide opportunities fairly to all and equality.   It is upon the government to assuage the social ills to defend social independence, entity and human rights. The essential responsibility of government is to care for the general wellness and secretive civil rights which were considered inextricably associated if not similar people concur to restrictions on their conduct by conceding to government definite imperfect powers and only if the government policy represented in both public and private rights  while on the other hand, Conservatives  holds on individual accountability, partial government, liberal markets, character autonomy, traditional2.   Believe the task of government ought to endow people with the liberty required to practice the goals of their desire. Conventional policy commonly emphasizes on strengthening individuals to handle their own questions at hand1. The importance of ideology differences became a theoretical debate just after the assertion of the occurrence in political discourse2. This is due to the fact that main components of ideology cover political behavior and use of propaganda to obtain both within and global legitimacy to be recorded since in the past. A severe methodical investigation of the ideological mechanism in intercontinental associations turned out to be promising, subsequent to two situations that were realised. To

Marketings role is to encourage consumption (Lazer, 19691). This Essay

Marketings role is to encourage consumption (Lazer, 19691). This statement is as true now as it was in 1969. Debate - Essay Example Marketing is a progressing field, one that believes in providing success to the stakeholders who are involved within the different reigns of the same. This success is measured in terms of the relative values of business processes and undertakings. Marketing’s long term success is measured by the kind of opportunities that are unveiled over a period of time relative to the problems that the resources have had (Buxton 2002). The statement of marketing being a significant factor within the encouragement of consumption is true even to this day, more so due to the advantages that marketing has on the pertinent role of the business. This paper takes a deep and incisive look at the way marketing has been seen as an enabling agent with regards to consumption and the eventual sale which in essence has been the case since 1969 and even beyond. If the customer does not come back to buy a product, there is no use of marketing it. However this would be a very negative stance on the part of the organization under question. Any organization would dearly require its line of products to make a sale time and time again. This will enable the organization to understand the psyche of the customers in a very amiable way. Similarly this was a precedent which was followed even in the yesteryears, for instance 1969 when marketing was thought of as being an important instigator within the consumption avenues. What makes the whole debate even more significant and interesting lies in the fact that this is the case even in the time and age of today and one can easily predict that marketing will continue to play its due role in a similar capacity in the days to come (Fink 1973). Marketing is a very unpredictable entity but its results can be gauged over a period of time only if the related settings are taken into consideration. These could i nclude the ways and means through which customers, employees and stakeholders merge in a singular capacity to bring

What makes china an attractive location for inward direct investment Essay

What makes china an attractive location for inward direct investment by multinational enterprises - Essay Example This project has incorporated over US $580 billion. The inward direct investment for China has grown with these developments in the economy. In 2007, foreign direct investments reached $83.5 billion. Foreign outflows increased further in 2008 and has grown steadily since. China went ahead to announce increased merger and acquisition deals to above one hundred and thirty mergers in 2008. Furthermore, merger and acquisitions in 2009 exceeded US $27billion. China’s strength in the international investment lies its ability to remain consistent through economic downturns (Qu et al 2010). Foreign outflow and inflows in China has been notably stable despite persistent downturns on the global threshold. Most studies attribute development of the Chinese economy and its financial stability to foreign investments. More than fifty per cent of Chinese exports come from foreign connections, located within the country. Moreover, three hundred out of five hundred of the world’s largest companies, have extended their productivity schemes to China. These foreign firms alone employ approximately twenty four million workers within China (Green et al 2010). The data taken shows that over three quarters of Western, Japanese and other Asian multinational organizations move to China’s domestic market (Urata et al 2006) Investors are especially attracted to China by low costs of labor and land. The Chinese labor force is among the largest in the world. It consists of over one hundred and four million in the productive sector. This number alone doubles the labor forces of Germany, US, Italy, Canada and Britain altogether. The Chinese market is also characterized by offer deficit besides the favorable costs of land and available labor. China is endowed with resources such as minerals for example, aluminum, bauxite and oil that are useful in the investment process. The nation’s investment is similarly influenced by money supply and recent account balances. Coun tries seeking to attract foreign investment use such methods as these. The methods involve creation of incentives by reduced taxation on exportation to China, critical recommendations on technology and favorable loaning processes along with good infrastructure for telecommunication and transport purposes (Paprzycki et al 2008). Chinese inward investments by and large exceed those that are made outside the country. The country has also resulted in creating provision for its international capital for own foreign investments. China’s overseas investments have been encouraged by overflow of resources and the country’s allegoric domestic demand. The country’s excessive capacity in production has led to sectors of the Chinese economy seeking international investment opportunities. This for the sake of further growth in such industries that bear an overflow. Furthermore, investments take advantage of quota free access to countries like the United States by investing di rectly through other nations such as Africa and Cambodia. Other nations have advantages such as location specificity and incentives (Wang, 2002). The United Kingdom for example provides with investment grants. Chinese foreign investments take advantage of this benefits. Investments by the Chinese firms is motivated by opportunities to gain knowledge on certain technologies. The Chinese foreign direct investment goes into other economies with the aim of obtaining technological knowhow. The technological knowledge later applies in China’s own production processes (Zheng, 2008). The Chinese government reinforces foreign investmen

Reading Response on Design and Technology Essay Example | Topics and Well Written Essays - 750 words

Reading Response on Design and Technology - Essay Example Because of the nature of this new mode of computer interaction, this technology is now referred to as natural user interface. In terms of the core functionality of this technology, it’s noted that this technology is primarily concerned with visibility in terms of the main computer menus. Such interfaces have a history dating back to the 1960s, with multiple-touch systems debuting in the 1980s; prominently these interfaces have existed within game design and electronic input devices such as musical instruments. Still, one recognizes that such incorporations of the technology provide a liberal definition of the interface. Notably, Norman (2010) indicates that gestural interaction is not an objective element of human existence, but is culturally specific. In these regards, one considers that these technological innovations are not simply altering the way humans interact with computers, but extending the nature of cultural non-verbal communication globally. Still, Norman (2010) no tes that gestures also present a number of problems in successful computer integration. Many individuals will remember the poor functionality of the Nintendo Power Glove in the 1980s; still, Norman (2010) contends that with technological advancements many of these functional challenges can be overcome. While the contemporary implementation of Nintendo gestural technology in the Wii is demonstrated to have much higher functionality, the article notes that there still remain a number of complications in this incarnation. In terms of necessary technological advancements that still must be developed there are a number of specific elements considered. The article notes that momentum and viscous friction need to be combined so that motions on the screen continue to move after they occur. Another prominent area of concern is multiple computer interaction; Norman (2010) wonders if computers should designed so that an individual can make a gesture from one computer screen that will carry an object over to another. Norman (2010) compares such technological challenges to the challenges that were faced by individuals in developing Windows type operating systems. Some of the remaining questions are the extent that the technology should incorporate partial gesture systems or full-body gestural interaction. In these regards, Norman (2010, p. 9) notes, â€Å"We need ways of specifying scope, range, temporal order, and conditional dependencies.† The article also notes that the systems must develop sufficient feedback systems for continued technological development. There are a number of notable sociological contributions such technological advancements have been argued to contribute to the contemporary cultural lexicon. For instance, Norman (2010) notes that human gestural interaction with computer interfaces has created new structural modes of signification; Norman (2010, p. 8) states, â€Å"Shaking a device is starting to mean ‘provide another alternative.†™ A horizontal wiping motion of the fingers means to go to a new page.† In these regards, one considers that gestural interaction, or ‘natural use interface,’ not only constitutes a new mode of technology, but also a higher level of union between humans and technology. To an even greater extent, technology has become an extension of the human rather than a simple tool. The article also considers

Child Care - Care For Children Essay Example | Topics and Well Written Essays - 1250 words

Child Care - Care For Children - Essay Example I would choose enough attractive and age-appropriate toys, books and other learning materials that would be available for the children. I would set up the room in such a way that children can move freely from one learning area to another, keeping in mind the activities that I expect would go on in a particular learning area. For instance, I would keep quiet areas such as the mini Reading nook away from noisy areas such as the blocks or manipulative area which I expect would be a-buzz with children’s productive noise. I will also prepare interesting but not overwhelming activities for the children that would follow a schedule, with the goal of eventually establishing routines. Examples would be using puppets to introduce each child, a simple story about starting school or day care, and a variety of hands-on activities such as playdough, macaroni-stringing, block play and the like. Children would feel more welcome if they see that some parts of the room have been customized for them. They are assigned cubbyholes to place their things while in school, and these are especially labeled with their own names or pictures. A memorable first day deserves a remembrance to take home such as a personally made hat from newspapers and collage materials. This is something Max can show his parents and grandparents and be proud of because he himself made it in school. Personally, I prepare myself physically and psychologically for a challenging first day. I will make sure I am well-rested and well-fed with nutritious food that would keep me energetic enough to keep up with very young children or to deal with trying moments such as tantrums and separation anxiety. This big change in the family’s schedule and lifestyle deserves an orientation. Beforehand, I can arrange for a conference with the parents (if the school does not hold its own parent orientation meeting) and Max and show

Swinburne, His Poetry and Religion Essay Example for Free

Swinburne, His Poetry and Religion Essay Before one can attack an individual, group, or ideology, it is a logical requirement to achieve a considerable amount of knowledge on the particular subject. This was adhered to by Swinburne, whose familial background and values necessitated his education in the Anglican Church. He knew much about the scriptures, as well as the corresponding interpretative methods of apocalyptics, prophecy, and typology. With this knowledge, Swinburne was equipped with means and ways to express his own interpretations through poetry. Acknowledging the Victorian society’s preference for biblical allusions, he regularly made use of language that contained religious references that often challenged the issues of the Roman Catholic Church. Swinburne took a fancy to attacking organized religion, particularly the Catholic Church’s involvement in a divided Italy. Parody and blasphemy started to make their way into Swinburne’s works, although he never dismissed the existence of the Church—in fact, its absolute presence became the foundation for his poetry. In â€Å"Hymn To Proserpine†, a 100-line dramatic monologue, is all about the mythological figure Proserpine, offspring of Zeus and Demeter, who eventually became queen of darkness, and, in Swinburne’s terms, death. The Roman Emperor Julian the Apostate, historically known to have opposed Christianity, takes on the main task of being the voice of the poem. Included in the epic are mentions of a â€Å"pale Galilean†, which is a thinly-veiled reference to Jesus Christ. Such a bold statement completely revealed Swinburne’s ties to paganism and atheism, which was soon criticised by the press. Another work, â€Å"Atalanta in Calydon†, also surprised readers due to its dramatic entrance in the literary world, which was maintained by poetry of subtle and mostly quiet character. Patterned closely after classic Greek drama, it also utilises elements unique to this traditional form—but with the signature style in rhythm and metrical agility. With its Greek structure and ancient themes of being in control of your own fate and the belief in divine intervention, Swinburne succeeded in going beyond the typical Greek tradition of religious acceptance, and appeals to the spirit of man to overcome and conquer the tyrannical rule of the gods. Quintessentially Swinburne, with his partiality and focus on sensual and sexual pleasures, upheld the beauty and spirit of life by denouncing the forces that controlled death and decay. On the other hand, one of Swinburne’s most popular works, â€Å"Poems and Ballads†, no longer attempted to hide behind the cloak of traditional styles or references. It outwardly declared the poet’s trashing of convention, and introduced themes that celebrated immoralities such as sexual freedom and philistinism. Within the work, the subjects of â€Å"The Leper†, â€Å"Anactoria†, â€Å"Faustine†, and â€Å"Laus Veneris† were all directly proclaiming the benefits of physical and sexual obsession, as well as excessive and abusive living. Once more, paganism figured prominently as Swinburne’s larger theme, with the work dedicated solely to the cult of the goddess of pain—from whom escape will only result in death. But like the previous â€Å"Atalanta†, Swinburne’s use of rhythm and magical verse was worthy of applause; his ability to move within the restricted format nimbly yet exuding the emotions designed per work is a feat still left unchallenged even by many modern poets. Movement appears to be Swinburne’s skill—as evidenced by the slow and unhurried â€Å"Laus Veneris†, the haste and quickness in â€Å"The Triumph of Time†, the carefree lightness of â€Å"Faustine†, and the swiftness in â€Å"Dolores†.

Accounting and Corporate Governance Essay Example for Free

Accounting and Corporate Governance Essay The memo is to address the accounting maneuver of Lehman’s Repo 105 (or 108) from perspectives of accounting and corporate governance. The memo will illustrate the role of repo transaction in Lehman’s business model, analyze the accounting irregularities regarding repo by Lehman, observe auditors’ role in these irregularities, and discuss the corresponding accounting and corporate governance issues. In addition, the memo will provide recommendations on how to prevent financial institutions from abusing regulatory deficiencies by emphasizing on the importance of accounting regulation, auditors’ role, and business ethics. See more: Recruitment and selection process essay The major goal of Lehman’s Repo 105 is to temporarily remove troubled securities from its balance sheet while presenting favorable financial statements to its investors, creditors, rating agencies, and the public. By temporarily removing these securities from its balance sheet, Lehman made its leverage ratio much lower. With low leverage ratio, Lehman would keep its credit rating at high level and maintained its customers’ confidence. A repo, or sale and repurchase agreement, is an agreement in which one party transfers to another party as collateral for a short-term borrowing of cash, while simultaneously agreeing to repay the cash and take back the collateral at a specific point in time (SFAS 140). An ordinary repo should be treated as a financing transaction and should be accounted for as a secured borrowing. An ordinary repo is a commonly-used form of secured loan between financial institutions. In fact, repo does not have real economic substance. However, by the Repo 105 transactions, Lehman did the same in an ordinary repo, but because the assets value were 105 percent or more of the cash received, accounting rules permitted the transactions to be treated as sales rather than financing. Lehman aggressively employed Repo 105 transactions before reporting periods at the end of 2007 and the first two quarters of 2008. During the reporting periods, Repo transactions helped Lehman remove assets from balance sheet and use cash received to payback short-term loans. In addition, Lehman did not report any liabilities that reflected the obligation to repay the borrowed funds. After the reporting periods, Lehman would borrow funds to repurchases the transferred assets. Then these assets would be reversed on the balance sheet again. The consideration is whether Lehman’s accounting for Repo 105 violated the Generally Accepted Accounting Principal (the GAAP). Statement of Financial Accounting Standards No. 140 (SFAS 140) provides the accounting guidelines on repo transactions. A company is permitted to account for these transactions as sales only if the transferor surrenders control over the assets to transferees. To account for a repo transaction as a sale, all three conditions must be met: 1) the transferred assets must be isolated from the transfer, 2) transferee has right to pledge or exchange the assets, 3) the transferor does not maintain effective control over the transferred assets. A typical repo contract can easily meet the first two conditions. However, in order to take advantage of favorable accounting treatment as sales transaction, Lehman has employed some accounting maneuvers to meet the third condition. SFAS 140 (Paragraph 218) states that the transferor’s right to repurchase is not assured unless the repurchase price is 102 percent or less of the cash received, or the cash received is 98 percent or more of the value of the transferred assets. â€Å"The Board believes that other collateral arrangements typical fall well outside that guideline (FASB, 2000, p. 91). † The repurchase price of Repo 105 is 105 percent of the cash received, which is higher than the 102 percent guideline. As a result, Lehman could argue that Repo 105 did not meet the third condition of maintaining effective control, and then classified it as sales. Based upon the above analysis, Lehman’s accounting for Repo 105 seemed to be technically in compliance with the U. S. GAAP. However, Lehman’s bankruptcy examiner Anton R. Valukas (2010) provided evidence showing that Lehman intended to use Repo 105 to manipulate its 10-K and 10-Q financial reporting. Valukas argued that the classification of these repo transactions should be based on its economic substance rather than its form (such as the 102 rule). Since Lehman had clear intent to buy back the transferred assets under Repo 105, these transactions are clearly secured borrowing and should not have been recorded as sales. The obvious accounting irregularity is Lehman’s failure of disclosing Repo 105 transaction in its quarterly and annual financial reports. Valukas (2010)’ report indicates that Lehman’s SEC 10-K and 10-Q filing between 2000 to third quarter, 2007, regularly misrepresented some repo transaction as â€Å"secured borrowings† despite that it actually recorded as sales. In addition, Lehman never disclosed its involvement in Repo 105 its 10-K of 2007 and the first 10-Q of 2008 (Chang et al, 2011). In fact, Lehman has aggressively involved in Repo 105 during the end of 2007 and first two quarters of 2008, removing approximately by $38. billion in fourth quarter 2007, $49. 1 billion in first quarter 2008, and $50. 38 billion in second quarter 2008 (Valukas, 2010). It is clear that Lehman’s misrepresentation and failure of disclosure of its Repo 105 practice is material enough to mislead its investors, debtors, rating agencies and the public. As the auditor of Lehman Brothers, Ernst Young approved the use of Repo 105 transactions. These transactions were characterized as sales of assets and created a misleading picture of Lehmans financial position during the financial meltdown. Ernst Young said in a statement: â€Å"Our last audit of the company was for the fiscal year ending November 30, 2007. Our opinion indicated that Lehman’s financial statements for that year were fairly presented in accordance with Generally Accepted Accounting Principles, and we remain of that view. † Ernst Young would like the public to believe their responsibility for Lehman’s financial statements ends with the 2007 10-K. Actually, It does not. According to the examiner’s report, Ernst Young had just started planning for its year-end audit of Lehman when the firm collapsed into bankruptcy. Lehman remained an EY client until the bankruptcy in September 2008. This period included two more 10-Qs. But most troubling for the auditors could be allegations in the examiner’s report that Ernst Young did not inform the audit committee on Lehman’s board about a whistleblower who had expressed concerns about the repos to them. In a March 2010 letter to its clients, EY defended its audit work for Lehman. The letter states that Lehmans bankruptcy resulted from unprecedented adverse events in the financial markets, declining asset values, and loss of market confidence that caused a collapse in its liquidity. The firm believes the bankruptcy wasnt caused by accounting or disclosure issues, as Lehmans financial statements clearly portrayed it as a leveraged entity operating in a risky and volatile industry. † The most telling assertion in the complaint concerning EYs alleged misrepresentation of Lehmans compliance with applicable accounting standards is that EY didnt require the financial statements to reflect economic substance rather than just legal form. In other words, the complaint accuses EY of letting Lehman engage in transactions without business purpose in order to achieve a specific financial-statement result. The bankruptcy examiner said that the sole function of Repo 105 transactions as employed by Lehman was to reduce its publicly reported net leverage and net balance sheet. Although Lehman knew that none of its peer companies were using the same accounting tricks to arrive the leverage numbers, it continued to rely on the use of Repo 105 substantially, at a level that is much higher than the originally defined â€Å"materiality† level by the management. As a consequence, it left Lehman with heavy concentrations of illiquid assets which could not be monetized to meet its current obligations (Lehman Brothers Holding Inc. v. Debtors, 2010). The Examiner did not find supporting evidence to bring â€Å"colorable claims† (Lehman Brothers Holding Inc. v. Debtors, 2010) against Lehman’s directors, however, they should have better monitored the managers. And the examiner did find sufficient evidence to support a colorable claim against certain senior officers for breaching their fiduciary duties to shareholders and other stakeholders because they failed to inform the public and shareholders about the substantial use of Repo 105 by non-disclosure of related information and by filing materially misleading periodic reports, which risked the company with potential liabilities; and they also failed to advise the Board of Directors of the Repo 105 practice (Lehman Brothers Holding Inc. v. Debtors, 2010). The examiner also concluded that sufficient evidence existed that Lehman’s quarter? nd Repo 105 practice was material and should have been disclosed in the financial statements. In addition, Lehman had an obligation to disclose required information relate to Repo 105 in its MDA statement. In terms of accounting malpractice, Lehman’s external auditor, Ernst Young, was also held responsible for allowing Lehman’s financial reports to go unchallenged. Ernst Young well knew the practice of Repo 105 adopted by the company, but failed to review the volume and timing of Repo 105 transactions, and failed to access the materiality of information omitted regarding Repo 105 transactions. Furthermore, Ernst Young failed to conduct investigations with regard to the concern about Repo 105 raised by Matthew Lee, then-Senior President of Finance Division. In conclusion, corporate governance was lacking both internally and externally (Lehman Brothers Holding Inc. v. Debtors, 2010). The accounting irregularity of Lehman’s Repo 105 practice partly due to the deficiencies of accounting rules, however, integrity or accounting professionals as well as business ethics also play an important role in the accounting malpractice. In 2009, FASB issued SFAS 166 to amend SFAS 140. These efforts could close some loophole in accounting standards. Good corporate governance requires not only effective board and ethical top management, but also reliable accounting personnel and independent outside auditors, to properly perform their jobs and fulfill their responsibilities, to create the â€Å"check and balance† that can maintain the financial health of a company and at the same time to reduce agency cost. In case when one party went badly, the others could and should be there to detect the potential problems and to monitor and correct the mistakes. In summary, the ethical challenges faced by EY in deciding how to address issues with a long-standing and profitable client may be faced by many public accountants. In fact, accountants in all areas of the profession frequently face similar ethical issues of simultaneously complying with their duties for faithful service and loyalty to their employer or client while respecting their responsibilities to other stakeholders. Doing the right thing for all concerned may sometimes be an impossible assignment. Guidance such as the overarching principles of honesty, fairness, objectivity, and responsibility contained in the IMA Statement of Ethical Professional Practice will go a long way toward helping all accountants to do the right thing. Doing the right thing is always the best policy in the long run.

HRM Training And Development Programs

HRM Training And Development Programs In order to link the workforce activities to the strategy of an organization strategy, Human Resource Management is the best way. HRM is frequently referred as Strategic HRM. The main driving force of an organisation is resources. There are usually two types of resources which are considered in the organization that can be tangible or intangible. Finance, companys place, employees etc are the tangible resources while intangible resources include goodwill or repute of an organization, capabilities of an employee. As for a organization both types of resources are very important but considerable edge over the other resources is gone to human resource or workforce. it is independent resource while the other resources are dependent . As the human being every one has different talent and capabilities from others so the employees in any organization are different from each other in this regard.(Mathis, Jackson:2007) HRM has several goals: To fulfil the requirements of the business and management There should be a link of human resource strategies / policies towards the business objectives. To find different methods for human resources to add value to an organization. To help a business get the loyalty of employees to its morals, goals and objectives. In simple words the HRM is defined as employing, maintaining and compensation the people in time with the job and organizational need. Human Resource Management is a managerial function which usually concerned with hiring, motivation and maintaining people. Its main focus in any organization is people. (Stredwick, 2005) Intangible resources are very important to an organization as they contribute much more than the tangible resources to total value of the asset of an organization (Grant, 2005) To get the competitive advantage over its competitors training and Development of employees is a strategic tool that an organisation uses. In general education is mind preparation while training is the systematic development of the knowledge ,skill capabilities and attitude needed by an employee to fulfil the requirement of the job and development is the growth of the employees in the sense of their understanding and awareness of the job performed by them. I never teach my pupils; I only attempt to provide the conditions in which they can learn (Albert Einstein, 1879 1955) Learning without thought is labour lost. Thought without learning is intellectual death (Confucius) By giving proper and effective training and development and keeping the focuses on the desired outcomes is a key function of the human resource management. Any organization that has Innovation and having a competitive advantage over competitors, it is only possible with the help of capable employees supported by strong information and understanding about their field of interest. Of course during the training and development program, cost and time investment is critically important for the smoothly running of operations during the way of the project. (Holt: 1993). According to Baldwin et al ,1994 reported that it is an experienced by small and medium firms that if they have skilled labour it is one of the most important factors contributing to their growth. In order to be successful in a global market, an encouraged, stimulated, happy and skilled labour which a small firm needs that can generate at low costs. Importance of Human Resource: Flexibility and adaptability is fundamental for the human resource to own. As the circumstances changes with the passage of time, so the management program of their training and development for the development of employees should take this feature into concern as well. According to Dransfield, 2000 human resource management is very important and mainly it is due to the capabilities and skill of the people and best utilisation of resources by the organisation in the way they want to. People/ Workforce as a key Resource of any organization: The most important activities in any organization are workforce planning. People are the most important key factor of any organization. TO build up a team of expert, skilled and specialised individuals is also a key function of the human resource management. It starts with the analysis of the strategic position of any organization. The desired outcome of this analysis is then feed into a forecasted demand and supply of the labour for the organization. At the end of this analysis the establishment and execution of a human resource plan which man aim is to force plan how Strategy feeds? (Vernez: 2002) How a workforce demand forecast? In order to get an accurate forecast of the workforce size there should be proper planning to put the human resource together. Main key factors are; There should be a demand between existing and new products or services What part of an organization is disposed off or what product closure. Introduction and implementation of new technology There should be cost reduction programmes. Any merger, Acquisition, joint venture, partnership. (Vernez : 2007) How a workforce Supply forecast? The main point for the estimation of supply is the existing workforce. So it is possible of any organization to make a forecast of the workforce size and ultimately this can be compared with the strategic needs of any organization, which results is workforce gap (thats mean a forecast of too few or too many employees). The main role of the HRM is to fulfil this gap. (Vernez: 2007) TRAINING AND DEVELOPMENT AS SOURCE OF COMPETITIVE ADVANTAGE: Knowledge capital through training and development as a source of competitive advantage but how any organization can get it? Knowledge Capital: Know how that comes from information, learning, skills and experiences of the people of any organization. It is the most important point of the human resource capital. The ability to learn faster than your competitors may be the only sustainable competitive advantage (Arie de Geus: 2002) Competitive Advantages: Knowledge worker productivity is (The) only real competitive advantage in a global Economy (Drucker: 2007) A Competitive advantage is an advantage of an organization over its competitors which it gets by offering customers big value , either by giving them higher services or benefits or by lower prices that justifies. Every Organization derives competitive advantage through training and development. In any organization there is a greater stability, elasticity and ability for growth. At least two years training contributes towards the employees stability. Employees become more efficient and effectively participate towards the growth of the organization. The employees become more versatile in operation by training and they can be transferred to any type of job. So there is surety of flexibility as well and growth will bring prosperity which will affect the yearly profit of the organization. However by training the accidents damages and scrap of the equipment can be avoided or can be minimised. If the employees are well trained by the organization the complaints absenteeism can be reduced. (Wilson, John: 1999) Example: Apple is a multinational organization that designs and markets electronics, computer software, ipod, iphone, laptops etc. Training programs of APPLE: The training programmes of the apple have an aim to facilitate their employees to build up their skills and abilities. 1. Educator has Professional development: Apple offers a broad range of professional growth workshops. In order to produce and bring out digital content for their classes they are intended to give faculty talent and self-confidence. They engage media assignment as to generate creativity and there is teams collaborating in and out of class. Each workshop is lead by ex- educators and is fully adapted for their establishment. (AppleS DVD Studio Prio web site: www.apple.com/dvdstudiopro) 2. IT has Professional Services: With your IT Department for a planning of implementation of new technology the apple professional team participate. Even team can handle those proposals over time. (AppleS DVD Studio Prio web site: www.apple.com/dvdstudiopro) 3. iLife, iWork and pro application certifications: In order to prove their abilities and expertise at creating digital content such as movies, music presentation and much more , the students and educators are awarded by associate -level certification in iLife or iWork. (AppleS DVD Studio Prio web site: www.apple.com/dvdstudiopro 4. Programmes like Mac OS X, Mac OS X Server and service certifications: To avoid the troubleshoot Mac OS X or to implement a Mac OS X. Server based system, apple does offer training and certification Courses and programmes. It offers an update version of iPhone development training course that includes full coverage of iPad development. Another 5 days course is conducted for the introduction of iPhone and iPad development.The two other courses are in the queue ANSIC Programming Objective -C for beginners. The trainer choose their classes what they need and these classes are taught by two well -known and highly regarded iPhone developers Jonathan Lehr, founder of About Objects, and Aaron Morse, developer of numerous hit iPhone apps including TapDefense, and Trenches. (AppleS DVD Studio Prio web site: www.apple.com/dvdstudiopro) Challenges faced by HRM: There are few challenges which are facing by HRM: 1. Globalization: As there is no right or wrong way to run any organization, many organizations have taken initiative to improve HRM in their own organizations. Success of any organization depends on the organizations strengths and weaknesses. Globalization is a biggest challenge for HRM because of the change in technology every day. (Shermon, 2004) 2. Cost and Investment: As the training given by the organization, the organization should spent time and money on it. And sometimes after training the employees do not stay within the organization this is the biggest challenge faced by the organization and every organization should allocate its specific budget for the training and development of the employees. But when the organization obtained the outcomes according to the needs and requirements than this cost and time worth it. The expense on the training of the employees will be a recurring advantage for the enterprise for a long time to come which will be in the form of increased efficiency of the employees (Singla , 2000) 3. Keeping Pace with Rapidly Changing Technology: As in the era of globalization, with the passage of time Technology is also changing rapidly which has become a severe problem for the human resource management to cope with. In order to be update with the market, the training and development program should be updated according to the need of time and market condition. (Haines: 1999) 4. Uncertainty: Future is uncertain so the market situation is always unpredictable and to keep the employees up-to-date with the current market situation, it needs a complete study of the current business situation. 5. Retention of the employees: The Big problem faced by an organization is to retain their personnel after their training and development programmes. The competitors always try to take their assets of the organization. (McKeown, 2002) 6. Product Life Cycle: As this is a new modern technology era and due to globalisation the changes occurs so quickly that you should need to keep your employees up to date by giving them training programmes and workshops or short courses because the life cycle of any IT related program is very short.(Stark , 2005) 7. Diversity: According to Thomas,1992 proportions of workplace diversity include, but are not limited to: age, race, ethnicity, gender, physical abilities/qualities, race, sexual orientation, educational background, geographic location, income, marital status, military experience, religious beliefs, parental status, and work experience The innovative ideas can be brought only by the diverse body of talent so the success of any organization depends on it. With the mixture of the talents any business opportunities can be attracted by an organization more rapidly and quickly in this globalisation era (Cox, 1993), which must be the most important organizational objectives. Differentiation: Core benefits are the benefits which are the expectation of the customers that they will receive it from the product. So the main thing of any organization is that what is important to the customers. Theses are the benefits which all of your competitors will offer to the customers in order to be differentiated from its competitors. (Armstrong, 2006) HR Planning Linking Corporate Strategy through Training and Development: This is a vital function of HR and if it is neglected it might put organization in financial trouble as Rothwell, 2001 said the lack of integration between human resource management and strategic business planning processes is increasingly acknowledged as a major source implementation failures So importance of the linkage strategy between corporate strategies when proper training is given with relevance to the companys corporate strategy. Each organization has a corporate goal and plan while the plans include HR objectives. So during training and development program, these objectives should be focused to the employees. Strategic Human Resource Training and Development: 1. Strategy: Human resource management can deal any aspects of the organization which will affects such as employees training, hiring development etc. Strategic HR management is a proactive management of people. Basically it improving everything from hiring to the employees training programs to techniques and discipline. 2. SWOT: There should be SWOT analysis during the training and learning process. This analysis looks at the internal organizational strengths and weaknesses and external factors which are opportunities and threats. These are most important strategic factors as to organizations future. 3. Cost Benefit analysis: During the training and development of the employees there should be some cost benefit analysis that there should be some strategies to measure the best utilization of resources and lower the cost for up scale attributes. With the new product development it always entails significant costs. These are not only sunk but also fixed. As cost is the main concern of any managerial part. 4. Issues of the people: For the achievement of the organizational goals, the people, practises are all purposeful. The issues between people can be resolved b giving them proper training and development. Building Innovation Potential: Knowledge creates knowledge and while it is in the process it brings competitive advantage which leads to innovation. According to Dan Remenyi, 2001 said creativity is typically considered as the basis for innovation, and innovation as the successful implementation of creative ideas within an organization The ability to think about of any new idea is called Creativity. This includes the ability to basically it an ability to rethink an old idea and innovation is a process to put that ideas into process. (Bundy, Miles: 2002) For the survival innovations are must for the organizations. Any organization to prove itself in the marketing must bring some innovation and creativity in its business Example of Innovation and Creativity: Apples finished goods are not only differentiated by excellence but they are innovative and cutting edge. Consistent investment in RD creates innovation. The company is excellent in order processing and delivery. Creativity Innovation and Design Apple Apple, Inc Innovative Products are iPod Nano, iPod Touch, iPhone, iPod Shuffle. Any successful organization must incorporate all three in order to get the competitive advantage. When one company makes creativity than it will lead to the innovation of the other organization new iPhone Design: Any initial idea is creativity while design comes through this idea. While through information that developed the product or service is design and creativity is just n idea to put into process. Innovation also brings competition in the market. Recommendation: It is highly recommended that training and development programme is an integral part of human resource management roles and responsibilities. There should be some activities which are highly recommended. Training Learning Courses Workshops Certification Highly demand development courses Planning should be according to the needs and demand of any organization. There should be set up budget for training and development of the employees of any organization. But in order to be up to date with the globalization changes in the market /industry training courses and workshops should be highly recommended because innovation and creativity would only be possible if the organization has up to date knowledge and trained its employees according to the demand of the customer and for the competitors as well. Conclusion: In order to get the objective and goals of any organization it is highly required by any business to have the complete and detailed process of planning and study work of its training and planning programmes. The employees should be trained by proper training and development programs in order to get the competitive advantage in the market or industry. So it is the management part or wok not to waste time and money and utilize these resources properly in order to get the desired output. As earlier discussed that innovation, creativity, sustainability and differentiation is the integral part oh human resource management. If the training level should be up to that point that could enhance the capabilities of any employees and they have the confidence to overcome any worst situation in more efficient manner. Psychological there might be pressure and financial distress but at the end training is long lasting with the satisfaction and demanding product in the market. For the longer life of any organization specially in the globalize world it would only be possible if its products and services are according to the requirements of the customers and have some competitive advantages like Apple which is only possible by the training and development programmes of the organization. So conclusively, focussed, broad and meaningful training of the employees is the main soul of any organization.