Effect of technology on society an Example of the Topic Economics Essays by

Effect of technology on society Introduction It is a well known proverb that change is the only constant in this world. One of the most important catalysts of change in the history of mankind is technology. Rapid progress in technology has been at the forefront of driving sociological change. In the middle ages in Europe, technological progress came to a grinding halt and social change with it. But with the beginning of the industrial revolution in England, technological advancements resumed and so did sociological change. Thus the effect that technology has on society cannot be ignored. Need essay sample on "Effect of technology on society" topic? We will write a custom essay sample specifically for you Proceed Technology may have a favorable impact on society Two of the technological advancements in the 20th century, driven by the blistering pace of progress in computer technology, were the development of information technology and automation. The reason that information technology is called as such is because it facilitates the availability of information by means of the internet. Today the role that the internet plays in the lives of everyone in the west is larger than life. Almost all daily transactions are conducted online through the internet. The internet has also given rise to the development of the e-commerce model. The e-commerce model became really popular with the tremendous success of Amazon.com. There are many benefits that the e-commerce business model enjoys over the traditional business model. For example, businesses which are selling their products and services online do not have to set up brick-and-mortar facilities. This means that these businesses selling their products and services online do not incur costs at the sam e level that their competitors doing things the traditional way incur. This allows companies like Amazon to lower their prices of the end products. Because the internet lowers the cost of doing business to such an extent, it makes those businesses which are doing their buying and selling online extremely price competitive. While this has a highly positive effect on the bottom line of the online companies, its impact on the society as a whole is nothing to complain about. Customers have no reason to complain about lower prices. It is common knowledge that the lion's share of the customers put considerations of price in front of all else. As a result, the e-commerce model is proving highly beneficial to both suppliers and consumers in the economy. The fact that the internet has become one of the most profitable ways of doing business is made apparent by the statistics which reveal that companies are hiring software engineers more than ever. Recruitment of software engineering students is up by 20% this year (Quote sheet 1). In fact, taking business operations online is no longer a choice. It is a matter of survival. Migration online has become the consultants' favorite costs-cutting tool. As a result even businesses which do not sell their products and services online are taking some of their operations online. The advantages to be gained from taking business operations online are timely information availability and avoidance of redundant data entry. There are many businesses for example with large scale operations which are highly departmentalized. As a result, transfer of information from one department to another becomes an issue. Paper-based operations in a highly departmentalized company like this inevitably lead to the r ecording of the same information and delayed availability of that information to other departments. For example, in a large auto-manufacturing concern, the sales department might get a customer query for a particular model and make of a car. If all the operations in this company are strictly paper-based, then there is no way for the sales executive to answer the query immediately which is what the customer needs. This is because the information that the sales executive has on paper is not real time. Perhaps he received the update an hour ago since when the model in question may have been sold. The scenario outlined above happens all too often in the real world. This scenario may be avoided if the operations of the company have been taken online so that relevant information is transferred to respective departments immediately. As a result our favorite sales executive can see immediately with the click of a mouse whether inventory has the model that the customer is looking for. These are line operations. Staff operations like HR are also being taken online so that as soon as a new employee joins the company, his details and employment status are captured in the employee information database. From the employee information database, the information is immediately made available for recording attendance, leave and payroll purposes. This saves the company a substantial amount of money as the management can afford not to hire additional manpower to make these recordings. Back to the HR example, the employee information database determines which employee is entitled to what type o f leave and the system accordingly calculates the payroll information. This is an example of automation. Calculating payroll for example is a highly repetitive task, something that a computer system with the right kind of programming can be made very efficient at. It also saves costs substantially, freeing up organizational resources to be focused on line operations. Taking operations online as indicated above also facilitates storage of information (Vago 34). When the system has been taken online, customer information is recorded at many touch points and they are instantly made available to those departments which need those information. This allows the company to record purchase patterns of different product categories. Such information centering around purchase patterns can be of immense value inasmuch as it spurs innovation which in turn benefits the society to a significant extent. Innovations are made keeping the society's needs in view. Therefore one of the most important tasks for the management of a company is to determine which products features the society tends to embrace and which it tends to reject. The only way for the management to make that determination is to collect information and the process of collecting information can be very resource intensive. However if the management had decided to implement a package like Enterprise R esource Planning earlier which since installation had been capturing the purchase patterns and the demographic details of its purchasing public, then that additional investment in collecting information is no longer required. All the management has to do now is research the data that is already available. Even in this respect, there are intelligent computer systems that can sift through the data and create charts and graphs depicting demand saving the management additional time and money. This benefits not just the management of that company, but also the society as a whole. On the one hand, it enables the management to develop and market products that the society is most eager to buy, helping the bottom line substantially to say the least. On the other hand, the society gets a better quality of products and services to its satisfaction. There is a well known saying that all work and no play makes Jack a dull boy. Advancements in technology have made sure that men and women do not have to work all the time so that they can live a little. Technological advancements have made intelligent automation at work more than feasible thus freeing up considerable time and money which might directly belong to the company but which in the ultimate analysis belong to the society. Automation speeds up business operations so that the management can go home early, take more vacations and spend more time with their families. The management also has more money to spend on holiday plans and not get stressed out. Clearly the quality of life is much more enhanced for no other reason than that technology has taken over. Technological effect may not be all favorable So far a lot of arguments have been made in favor of technology. However the situation is hardly that simple. Science fiction books and movies have pointed out time and again how too many advancements in technology can take over the world and make man its slave. This is of course science fiction material and so not to be treated too seriously. However the signs of technology driving man to his own destruction are already apparent. Weapons of mass destruction can wipe out the entire human race and all life on earth in a matter of seconds. However the destructive effects of technological advancements are much closer to home. As has been mentioned before, automating different work processes has become a brilliant method of cutting costs and enhancing profits. As a result businesses no longer need manpower as much as it used to in the past. In the last 20 years robotic industry has become multi billionaire industry and its growth rate is very high due to its many applications in manufact uring an automotive industry (Quote sheet 1). This shows plainly enough that while the development of robotic applications can be of immense value, such as lowering of investments in time and money, it also has a darker side in that robotic applications are replacing human beings. This is one of the biggest sources of unemployment problems. Therefore, while technology is making life easier and more fun at home for every Tom, Dick and Harry, it is also chipping away at their job security. In this way, rapid progress in technology can make a large chunk of the human resources of a country totally redundant. These people will no longer have jobs and will have to rely on the government for their living. Even a cursory examination of the above reveals that technological advancements can throw the society into a terrible vicious circle from which there may be no escape. In the current world order, capitalism has proved to be the most efficient means of allocating resources. However capitalism values profit maximization above all else. Therefore companies are forced to do everything in their power to lower costs and one of the most effective tools at their disposal, as mentioned before, is the application of automation. However the application of automation also means that a lot of people will have to go unemployed. Robotic applications do not have to be paid costly salaries and wages and they do the job they were made to do just as efficiently if not more. Therefore, the management of a company would never think of hiring human resources if an alternative of robotic applications exists. Therefore a lot of human resources that the management previously considered invaluable to its oper ations are suddenly made redundant. The employees are suddenly faced with the possibility of no more pay checks in the future. Suddenly families which were enjoying life so much as a result of the facilities provided by technological progress find themselves simply not in a position to pay the bills. Of course young workers can train themselves to become software engineers and find new jobs. Unfortunately thre is only a little bit of hoe for adult learners to imrove thir technological skills with th rising costs of education nd th lack of government rograms available to thm (Quote Sheet 1). And because they were made to let go without prior warning and therefore do not have savings, they do not have the money with which to pay the bills required anyway to enroll in training programs. So now it is up to the government to make massive payments in building and installing massive training facilities. This means that the whole point of capitalism is lost if as a result of capitalist prac tices, the government has to support millions of unemployed people. This turns into a vicious circle because more unemployed people, created by technology, mean reduced purchasing capacity of the economy as a whole so that the company automates more as a means of cutting costs. This only means the company has to let go of even more people and so it goes on and on. An extended analysis of the above clearly reveals a trend whereby technological progress seems to widen the disparity between the rich and the poor. On the one hand, the management is getting richer and richer because automation is doing most of the work for them more efficiently and more cost effectively. On the other hand, the poor are getting poorer because they are finding their skills outmoded. Th digital economy is comelling emloyers to give referential hiring treatment to those who have technology skills, nd leave those with out to rely on our already strained social services (Quote sheet 1). Th danger of th information age is that while in th short run it may be cheaer to relace workers with technology, in th long run it is otentially self-destructive because thre will not be enough urchasing ower to grow th economy (Quote sheet 1). Therefore the effects of technology on society are far from benign. A lot of people are losing their jobs because of globalization and globalization is also the result of advancements in communications technology (Kenneth 24). Because it is no longer a problem for businesses located on opposite ends of the earth to be in constant touch, businesses in America are moving en masse to China. As a result, thousands of people in the manufacturing industry are losing their jobs. Technology, in this case, instead of enhancing the quality of life, is destroying it. Conclusion Technology and society are intertwined inexplicably. A lot of social progress that has been made in the last hundred years has been as a direct result of technological progress. There has also been a loss of good things in life such as job security which are attributable to technological advancement as well. So whether technology is good or bad for the society is difficult to say. However that technology has a deep impact on society is undeniable. BIBILIOGRAPHY Laudon, Kenneth., and Carol Traver. E-commerce: Business, Technology, Society. South western college pub. 2007. McCue, Sarah. Farce to Force: Building E-commerce Strategies. McGraw Hill/Irwin. 2005. Vago, Steven. Social Change. Collins. 2007. McMichael, Philip D. Development and Social Change: A Global Perspective. McGraw Hill/Irwin. 2007. Noble, Trevor. Social Theory and Social Change. Collins. 2007. History of Technology. 7 December 2007. http://en.wikipedia.org/wiki/History_of_technology Chandler, Daniel. Technological or Media Determinism. 14 April 2000. Bailey, Ronald. Accelerating Change. 13 August 2003.

Likable and Dependable

Likable and Dependable Are these two tools part of your branding? Arent sure? Then theyre probably not. But why are these two traits so important when youre selling your words and not a public performance? Jane Friedman and Porter Anderson recently established a newsletter on the publishing industry titled THE HOT SHEET (http://hotsheetpub.com/). I was a Beta reader as they worked out the kinks. Its intensely smart, as would be expected from these two industry brains, but in a recent issue they addressed this issue of what readers expect in an author: The scientific finding from Nielsen: Authors, in general, are among the publics fave people in the entertainment world. Only TV and film actors score more highly with fans, which means that authors are rolling in ahead of sports figures and musical artists. Whats more, fans of authors like their authors more than fans of other types of people like their icons - even athletes are not as highly thought of Most of the authors I know fall into one of two categories: 1) They write a lot and promote when they have a new release or an upcoming event; or 2) They promote one book a lot and are slow in putting out new releases. That makes both inconsistent and less reliable, and according to that Nielsen report cited in THE HOT SHEET, makes those writers give the appearance of being less successful, influential, and dependable. So what does that mean for you . . . the burgeoning, struggling writer? It means you write and market each and every day. You appear to always be on the move, always producing, always available to the reader. Its hard, but doing otherwise these days when the competition is steep and the books cheap, will leave you in a lot of writers dust where readers wont be able to find you.

Participation Exercise #4 Assignment Example | Topics and Well Written Essays - 250 words

Participation Exercise #4 - Assignment Example Manufacturer’s expenses that occur apart from the actual manufacturing is the second component of overhead (nonmanufacturing costs). Predetermined overhead rate is useful in ‘applying’ overhead cost in a manufacturing setup. It is calculated at the beginning of the company’s accounting cycle. The formula for calculating the pre-determined overhead rate is as follows: According to generally accepted accounting principles (GAAP) manufacturing overhead must be included in the cost of Work in Process Inventory and Finished Goods Inventory on a manufacturer’s balance sheet. Pre-determined rate therefore is used to divide and allocate manufacturing overhead costs to each unit produced. It is defined as the rate used to apply manufacturing overhead to work- in- process inventory (Kimmel, Weygandt and Kieso). From the formula for calculating predetermined overhead rate, overhead is obtained by multiplying predetermined overhead rate by actual driver units. The difference between applied overhead and the amount of overhead actually incurred is referred to as over-or-under-applied overhead. Over-applied overhead increases the cost of production hence lower the company’s level profits. Under-applied overhead gives high rates of profits which may not be the correct position of the organization (Kimmel, Weygandt and

Mountaintop Removal Coal Mining Essay Example | Topics and Well Written Essays - 2000 words

Mountaintop Removal Coal Mining - Essay Example The first process of this heavily mechanized mining method is clearing of any vegetation in the site, and then powerful explosives are deployed turning the immediate surface weak thus making it easy for powerful machines to dig through it. Big trucks are continuously being filled with earth debris which is constantly taken away from the site. Then a powerful machine known as the dragline digs through the rocks to expose the coal deposits. Finally, giant machines scoop the coal and deposit the load on waiting trucks for transportation (Perks 2). This mining method is actively taking place in the Central Appalachia region spanning across four states that include, Tennessee, Virginia, West Virginia and Kentucky in Central America (Perks 2). A continuous increase in electricity demand and a reduction in the once easily accessed coal has led to the ever increasing coal mines in the Central Appalachian mountain tops. This has resulted to the destruction of mountaintops in the hundreds thus loosing the beauty they once possessed since the land is left bare with little or no vegetation. Many environmental organizations’ have called to the immediate halt of this mining method since they argue it poses eminent danger to the environment and to the wellbeing of the surrounding communities. The environmental implications brought about by this economic activity cannot be understated. The damage that has been caused by the mountaintop removal coal mining method on the water bodies, the wildlife and the forest cover around the Central Appalachian mountaintops has led to a disrupted ecosystem (Perks 2). From the cleared forest cover to the disposal of waste and debris into the neighboring valleys, the environmental degradation of the Central Appalachian region has been on a steady rise.... This valley fills become large expanses of barren land, which because of their toxic nature it becomes impossible to develop. Mining companies do not embark on reforestation exercises as required by law and instead plant non native grass to replace the forest of hardwoods that was once present (Perks 4). The remaining waterways that are not entirely blocked by the mine valley fills run the risk of being heavily polluted. The toxic nature of these valley fills makes the water streams that run from them carry toxic chemicals and trace metals that are not only harmful to the aquatic life, but also to the surrounding wildlife and human population (Perks 3). EPA estimates that over 60% of the streams located in the Central Appalachian region are compromised by the hazardous amount of toxic chemicals and heavy metals. A study done by the EPA has found levels of magnesium, calcium, manganese, dissolved solids and water hardness have increased significantly, thus greatly compromising the qua lity of the water to any life form around the area (Perks 3). Apart from the solid waste that create valley fills, the liquid waste that is created by water that is used to wash the coal for impurities so that it can be ready for the market. The liquid waste is a mixture of carcinogenic chemicals, small particles of coal that contain mercury and arsenic which are considered harmful heavy metals and all other chemical compounds found in coal (Chhotray 5). Liquid waste from the mining process is put in storage in an enormous, risky impoundment that is usually located near a water body. Backwater spills that frequently occur from these

Learning and Development Provision Essay Example | Topics and Well Written Essays - 2500 words

Learning and Development Provision - Essay Example Returns on such investments are often not clear and measurement of outcome is generally not possible in tangible formats. It is also observed in various studies that organizations, especially small and medium scale organizations, are vary of training programs due to non-clarity of its outcome. This has led to different hypothesis in the field of employee training and various training methodologies have been formulated to overcome the shortcomings of traditional training programs and meet the growing market challenges. Following discussion analyses structured training process approach to the analysis, design, delivery, and evaluation of learning and development provision. It uses the McDonald's training program as an example case to illustrate how a structured training program influence the productivity of employees and performance of business as a whole. McDonald's is the leading global foodservice retailer with more than 30,000 local restaurants serving 52 million people in more than 100 countries each day. It has an ongoing commitment to employee learning and development, recognizing the importance of helping to build the skills base of their employees and the benefits this can bring to their business with better staff productivity. The company's recruitment policy is opt to its name 'hire and smile'. McDonald's hires people with a diverse range of qualifications, from highly skilled managers to college dropouts and focuses more on human qualities instead of educational qualifications. Its employee training programs are highly structured and are based on the company's core principles of quality, service, cleanliness, and value. McDonald's has also initiated its new employee training program known as 'Skills for Life' to provide an effective training to its employees, in association with the Learning and Skills Council. As a part o f its structured training program, McDonald's has also started Hamburger University that acts like a cushion for a highly skilled human resource development initiatives of the company. Structured Training Process Structured training process is setting and controlling the various training activities that facilitate a proper analysis, design, delivery, and evaluation of training that leads to development of human resources. Structured training is defined as a training activity with specific content that has a predefined objective and predetermined format, and whose progress can be monitored and/or evaluated. On-the-job training, on the other hand, is informal and does not necessarily have a predetermined format. It is generally conducted in the workplace itself (Guide to the Analysis of the Workplace and Employee Survey, 2001, Statistics Canada). It often relies on simulations of real time events. Structured training programs consist of certain predefined simulated organizational tasks that require a prompt response from trainees. It also incorporates a structured approach for feedbacks to improve performance of employees and the training process itself. Structured training programs have several advantages over traditional training. Some of the major benefits of structured training process are as follows: Focus on objectives Limiting the tasks and focusing on the

Definition and purpose of computer accounting information system

Definition and purpose of computer accounting information system This literature review will begins with definitions and the purpose of (AIS) and discussion of the studies of general IT adoption and then reviews studies specifically focused on accounting software adoption. Then it will discuss the Uses,development and the step of AIS. The end of this literature review will discuss the effectiveness of accounting information system. Definition of computer accounting information system (AIS): The computer accounting information system (AIS) was invented by professor Karen Osterheld, It was used as a system of records for business keeps to maintain its accounting system. This includes the purchase, sales, and other financial processes of the business. [1]The purpose of AIS is to accumulate data and provide decision makers (investors, creditors, and managers) with information to make decision, while this was previously a paper-based process, most modern businesses now use accounting software such as UBS, MYOB etc. [1] IT Adoption Factors for computerized accounting: [2] Several studies (Thong 1999; Harrison, Mykytyn and Riemenschneider 1997; Cragg and King 1993; Moore and Benbasat 1991; Treadgold 1990) of IT adoption have identified a variety of motivating factors. Thong (1999) attempted to consolidate the myriad of IT adoption research by developing an integrated model of information systems adoption. This model is a useful framework in reviewing the variables that impact on business owners decision to adopt IT. Thong categorized the variables into four elements: 1. characteristics of the organizational decision makers: 2. characteristics of the technological innovation; 3. characteristics of the organization; and 4. characteristics of the environment in which the organization operates. According to the literature all of the above characteristics influence, to varying degrees, the owner- managers decision to implement IT. Characteristics of the Organizational Decision Makers In large businesses teams are typically involved in the IT decision-making process. This is in contrast to small business where the owner-manager is usually the IT decision maker (Thong 1999). In small business, therefore, the characteristics of the owner-manager are critical in determining the organisations attitude to IT (Rizzoni 1991). The particular owner-manager characteristics important to IT adoption are: innovativeness, computer self-efficacy, level of IT knowledge, education, and IT training experience (Thong 1999). Compeau and Higgins (1995) defined computer self-efficacy as a judgement of ones capability to use a computer. Small businesses that have CEOs (typically the owner) that have undertaken computer training and possess computer self-efficacy are more likely to implement IT (Delone 1988, Raymond 1988). Conversely, owner-managers can inhibit any worthwhile IT achievements through hostility or detachment toward IT (Thatcher and Perrewe 2002). Characteristics of the Technological Innovation The characteristics of the technological innovation itself are also an important determinant in the decision to adopt IT. Applying Rogers (1983) theory to the adoption of accounting software as the innovation, the software must be perceived better than the predecessor system (most likely a manual accounting system); must be consistent with the needs of the adopter, such as capable of handling GST; must be easy to learn and use; the results must be apparent; and the accounting software should be available on a trial basis. Over the past decade, the advent of powerful, low cost micro-computers coupled with user-friendly accounting software, have improved and lifted the barriers to IT innovation adoption. This has led to an increase in the adoption of IT by small business (Thong 1999). Characteristics of the Organization The characteristics of the organization are other variables that influences the decision whether to adopt IT. Organizational characteristics such as: business size, employees level of IT knowledge, industry sector, business location, and information-intensity has been analysed in previous research studies (See for examples: Fink 1999; Burgess 1998; Wenzler 1996; Attewell 1992; Yap 1990; and Delone 1988). Generally, the larger the number of employees, the greater the sales turnover, the more information-intensive the industry the more likely a small business will adopt IT innovation. Moreover, businesses tend to suffer resource poverty (Thong 1999) in terms of financial capacity, available time and IT skilled staff to facilitate innovation adoption. Characteristics of the Environment The characteristics of the environment in which the organisation operates relates to variables such as competition and external agents. For example, Link and Bozeman (2001) established that competition leads to innovative technology adoption. Treadgolds (1990) study indicated that small businesses with high IT adoption rates had been influenced by external agents such as: trade associations, wholesalers, voluntary groups and franchisors. Wenzler (1996) found that small business customers were a significant reason for implementing IT, more so than the influence of competitors. This paper extended the external agent influence to the role of accountants in the decision to adopt accounting software. Many small businesses are impeded by resource poverty, consequently the owner-manager does not have the available time or funds to source, analyze, review and implement software applications. Public Practice Accountants are in a unique position to provide systems analysis, design, implementation and support advice to their clients, thereby spreading the cost of acquiring this expertise among multiple customers. The accountant, therefore, could generally provide this service more efficiently and effectively, than if the small business owner performed the function himself or herself. Furthermore, at the time of this study, the introduction of the Goods and Services Tax (GST) was an external influence on small business owner-managers decisions to adopt a CAS (see for example Lief 2000). Motivating factors for the adoption of Accounting software [2] The advent of powerful, low cost microcomputers, together with user-friendly accounting software, has allowed a greater number of business to implement IT in recent years (Raymond and Bergeron 1992). The need to facilitate financial management is another motivating factor for adopting accounting software (McMahon and Holmes 1991; Gorton 1999). Moreover, some researchers have identified a link between the use of CAS and enhanced business performance (see Gorton 1999; Smith 1999; and Reid and Smith 2002). An alternative view is that a growing SME faces increased financial challenges and consequently there is a greater need for careful attention to financial management and financial reporting (McMahon 2001). The major benefits of implementing a CAS are to increase business efficiency and to facilitate timely information (Burgess 1997). The impediments to implementing a CAS are lack of time (Proudlock et al. 1999), owner-managers view that the CAS is costly (Head 2000), perception that the technology is not suited to the nature of the business (ABS 2000), and lack of IT expertise (ABS 2000; Burgess 1997). Accounting information systems Technology: [3] Input The input devices that needed win Accounting information systems include: standard personal computers or workstations running applications; scanning devices for standardized data entry; electronic communication devices for electronic data interchange (EDI) and e-commerce. Process Basic processing is achieved through computer systems in the personal computers to large-scale enterprise servers. However, processing model is still the double-entry accounting system . Output Output devices used include computer displays, impact and nonimpact printers, electronic communication devices for EDI and e-commerce. The output can be financial reports from budgets and tax reports to multinational financial statements. Uses of AIS [3] AISs cover all business functions from backbone accounting transaction processing systems to sophisticated financial management planning and processing systems. Financial reporting starts by capture important business transactions such as normal production, purchasing, and selling activities then these transactions are classified and summarized for internal decision making and for external financial reporting. Cost accounting systems are used in manufacturing and service company. This accounting system will help these organizations to track (measure) the costs for the production of goods and/or performance of services. In addition,it can provide advanced analyses tracking the cost of product or service. Management accounting systems are used for planning, monitoring, and control for a variety of activities . This allows managerial-level employees to have access to advanced reporting and statistical analysis. The systems can be used to gather information, to develop various scenarios, and to choose an optimal answer among alternative scenarios Development [3] The development of AIS includes five basic phases the time period associated with each of these phases can be as short as a few weeks or as long as several years. This five phases include: Phase 1 planning : In this phase the entails determination of the scope and objectives of the project, the definition of project responsibilities, control requirements, project phases, project budgets, and project deliverables. Phase 2 analysis :This phase is used to both determine and document the accounting and business processes used by the organization. It include three type of analysis which are: Data analysis is a thorough review of the accounting information that is currently being collected by an organization. Current data are then compared to the data that the organization should be using for managerial purposes. Decision analysis is a thorough review of the decisions a manager is responsible for making. Then models are created to support the manager in gathering financial and related information to develop and design alternatives, and to make actionable choices. Process analysis is a thorough review of the organizations business processes. These processes can then be modified or reengineered to improve the organizations operations in terms of lowering cost, improving service, improving quality, or improving management information. Phase 3: design: The design phase takes the conceptual results of the analysis phase then develops and involves the detailed design of all inputs, processing, storage, and outputs of the proposed accounting system. Inputs may be defined using screen layout tools and application generators. Processing can be shown through the use of flowcharts or business process maps that define the system logic, operations, and work flow. Logical data storage designs are identified by modeling the relationships among the organizations resources, events, and agents through diagrams. Output designs are documented through the use of a variety of reporting tools such as report writers, data extraction tools, query tools, and on-line analytical processing tools. Phase 4 Implementation:The implementation phase consists of two primary parts: construction and delivery. Construction includes the selection of hardware, software and vendors for the implementation;building and testing the network communication systems; building and testing the databases; writing and testing the new program modifications; and installing and testing the total system from a technical standpoint. Delivery is the process of conducting final system and user acceptance testing; preparing the conversion plan; installing the production database; training the users; and converting all operations to the new system. Phase 5 support: This phase has two objectives. The first is to update and maintain the AIS. This includes fixing problems and updating the system for business and environmental changes. For example, changes in generally accepted accounting principles (GAAP) or tax laws might necessitate changes to conversion or reference tables used for financial reporting. The second objective of support is to continue development by continuously improving the business through adjustments to the AIS caused by business and environmental changes. These changes might result in future problems, new opportunities, or management or governmental directives requiring additional system modifications. The Accounting information systems is very useful for companies and businesses in order to make the accounting process easier by spacial computer program or other system . Accounting software, make it easier to accumulate financial data for use in taxes, payroll, and other bookkeeping requirements. The step of the accounting system: [4] Step1: Recording ( recording expenses and profits that are very important to keep on file). Step2: Information processed for use (when processed, it is filed in the areas where it is most important). Sep3: Communication phase (common communications of this data will be used for payroll and tax purposes). In the first step all the data recorded in the accounting system in daily basis or minute by minute as sales, profits, expenses, and many other items will be used for future use in financial reports. Much of this data has to be kept on file for a number of years for example tax purpose. The next step that is taken is processing. In this stage most accounting software or programs, have different files and categories where records can be stored this filing or storage can be done manually by the individual or group of people who work on it and can also be set to do this automatically as information is entered into the system. Certain criteria can be set up in the program to allow the program to place files and data in the places or areas where it is supposed to go. The final step is the process of communicating the data in the area in which it should be communicated. First, and most importantly, tax records that are recorded and processed can be communicated at the time that filing taxes is done. Most corporations communicate there financial information on quarterly basis, other companies especially smaller businesses on an annual basis. In large corporations, like major retailers, there are often several smaller stores or branches of the company that must share information through accounting software or systems This information can help the company forecast sales, profits, loss, and a variety of other things. Many corporations share this information on a daily, weekly, or quarterly basis. The process of communication is probably the most important stage of accounting information systems because this is the point where results are known and records will be put to use. Most of the businesses and corporations now use the accounting system and become big part of them. Using resources available through accounting information systems allows major corporations and small businesses to record transactions and other financial information for use in the future. Moreover that the use of the accounting system by this company can make: the process much smoother, save money for the business, and save a great deal of time. easy to file and send documents to the IRS or other interested individuals. no need to take paperwork or other materials to an accountant for tax and payroll purposes. Taking advantage of this type of system can provide many great benefits to a large or small business. Accounting is a very important part of running and maintaining a business and the success of a company will often heavily rely on the practices and procedures that are used in the bookkeeping efforts of the company. The effectiveness of the computerized accounting [5] (Markus- 1983) shown that successful implementation of accounting systems requires a fit between three factors [17]. A fit must be achieved with dominant view in the organization or perception of the situation. Second, the accounting system must fit when problems are normally solved, i.e. the technology of the organization. Finally, the accounting system must fit with the culture, i.e. Systems will be useful when information provided by them is used effectively in decision-making process by users. (Otley-1980)[20] argues that Accounting Systems are important parts of the fabric of organizational life and need to be evaluated in their wider managerial, organizational and environmental context. Therefore, the effectiveness of accounting information systems not only depends on the purposes of such systems but also depends on contingency factors of each organization. (Ives-1983)Accounting information systems are said to be effective when the information provided by them serves widely the requirements of the system users. Effective systems should systematically provide information which has potential effects on decision-making process [12]. Accounting information usually is categorized under two groups: information that influences decision-making and mainly used for the purpose controlling the organization and information that facilitates decision (Huber-1990) [11] argues that, integration of accounting information systems leads to coordination in organization which, in turn, increases the quality of the decisions. (Cameron-1986 / Delone-1992) show that the effectiveness of accounting information systems depend upon the quality of the output of the information system that can satisfy the users needs [3,8]. Generally, accounting information systems; 1) provide financial reports on a daily and weekly basis and; 2) provide useful information for monitoring decision-making process and performance of the organization. (Simon-1987) [22] in his study used the first part of the above statement as measure of control for management and the second part for evaluating the effectiveness of the accounting information systems via continuous monitoring. Accounting information system is a computer-based system that (Nicoloau-2000) [19] defines as a system that increases the control and enhances the corporation inside the organization. Management is engaged with different types of activities which require good quality and reliable information. They also need non-financial information such as production statistics, quality of production and so on. However,( Essex and Magal -1998 ) said that quality of information generated from AIS is very important for management [10]. (Kim-1989) [13] argues that usage of AIS depends on the perception of the quality of information by the users. Generally the quality of information depends on reliability, form of reporting, timeliness and relevance to the decisions. (Doll and Torkzadeh-1988) [9] for studying the satisfaction of users use some concepts to measure the effectiveness of the accounting information systems. These concepts are information content, accuracy, format, ease of use and timeliness.

Ford Motor Company Essay

Ford Motor Company is the third largest automobile manufacturer in the world based on automobiles sold. Ford manufactures and distributes automobiles in 200 markets across six continents (Datamonitor 4). Ford’s brands include Ford, Jaguar, Lincoln, Mercury, Volvo, Land Rover, Aston Martin, and Mazda. Ford’s key products include passenger cars, trucks, busses and vans, sport utility vehicles, vehicle accessories, after-sales vehicle parts and products and extended repair service products. According to Fortune Magazine in 2007 Ford was the seventh ranked American-based company listed on the fortune 500 list, which was based on Ford’s global revenues in 2006 of 160.1 billion. The company’s success comes from its ability to focus on customer satisfaction and loyalty, anticipating and meeting changing customer needs, and delivering innovative products that exceed quality standards and are price friendly and also environmentally friendly. The financial stability of Ford and the long-term stability of our world are met by Ford’s strategy to lead with its products. Several key strategies are used by Ford that help to develop products that are of high quality, affordable to consumers and that are in high demand. These strategies include; continuous improvement of quality standards and customer satisfaction, adjusting to consumer demands by developing state-of-the-art technology that is cleaner and more fuel efficient, and delivering customer-focused innovations faster. If these strategies are implemented correctly Ford can overcome many or the driving forces that control competition in the automobile industry. Driving Forces Driving forces in an industry are the major causes that change the industry and the competitive condition of that industry. The main driving forces that significantly alter the automobile industry include; competition and globalization, new technology and innovations, changes in cost and efficiency, regulatory influences and government policy changes, and changes in societal concerns, attitudes, and lifestyles. Globalization is when automobile manufacturers offer their products internationally. One reason manufacturers do this is to increase sales in faster growing markets. Also production costs can be cut due to lower labor costs in markets around the world. Ford Motor Company is a strong believer in globalization; it manufactures vehicles in six continents across the world. Ford focuses on three primary types of emerging markets. The first market is developing countries such as China, India, and Brazil. The economies of these markets are growing and so is the need for products like automobiles. Ford realizes the amount of money consumers make in these developing countries and adjusts products to make them accessible to these consumers. In 2006, production capacity in China increased to 200,000 units (â€Å"For a More Sustainable Future† 7.) Also in 2006 Ford ranked second for customer satisfaction in India by J.D. Power Asia Pacific. The second emerging market Ford is focusing on is revitalizing economies such as Russia that are experiencing periods of growth after long periods of economic stagnation. The third emerging market Ford focuses on is high-growth niche market across the U.S. and Europe. Ford has developed and will continue to develop hybrid vehicles, advanced clean technology, and smaller more fuel-efficient vehicles that suit customers in a certain region or customers with different driving conditions. New technology and innovations is also a major driving force in the automobile industry. The ongoing change in technology alters the pattern of competition by attracting more buyers. Innovations in production techniques allow manufacturers to produce products faster, more efficiently and cleaner. Ford focuses its innovation on design, technology, safety, and the environment. Ford’s innovations are based on customer demands. Today more customers want environmentally friendly automobiles and better fuel-efficient cars. Ford has and is also developing more advanced technologies that are environmentally friendly. Examples include biofueled vehicles, hydrogen internal-combustion engines and hydrogen fuel cell  vehicles. Ford also has an innovative manufacturing process, which is cleaner for the environment and also saves money for the company. Ford uses fluids blended from vegetable oil during engine production rather than using mineral oil. The associated waste in engine building is the most environmentally damaging part of the process. Ford also has improved its efficiency by enforcing strict energy intensive operations, such as the generation of compressed air for handheld tools on the production line. Changes in cost and efficiency also drive change in the automobile industry. In the past few years’ material costs, labor costs, employee benefit costs and oil prices have all been increasing. One way that Ford is combating high oil prices is its use of a soy-derived foam. The average vehicle made today contains 30 pounds of foam made from petroleum products. Ford is making an effort to replace 40% of the petroleum-based foam with a soy-based foam. To fight against decreasing profit, rising labor costs and employee benefit costs Ford has been implementing elements of its’ â€Å"Way Forward Plan.† This plan was developed in 2006. The plan calls for reducing the number of Ford’s North American manufacturing employees by 25,000-30,000 and also plans to idle 16 North American manufacturing facilities (â€Å"For a More Sustainable Future† 34.) Also in 2006 health care expenses for U.S. Ford employees, retirees and their dependents were $3.1 billion (â€Å"For a More Sustainable Future† 35.) Even though Ford values its’ past and present employees, the company cannot keep up with the rising prices of health care. In 2006 Ford had required retired employees to support a higher portion of their health care benefits, and active employees were asked to increase their health care contributions. Also in 2006 Ford employees were offered to leave the company. To make it appealing to employees Ford offered eight different incentive packages. A couple of these packages included early retirement and an educational opportunity package where employees with at least one year of service were eligible for up to $15,000 in tuition reimbursement per year up to four years (â€Å"For a More Sustainable Future† 34.) Another driving force that alters the competitiveness in the automobile industry is regulatory influences and government policy changes. One example of a regulatory influence would be the governments Corporate Average Fuel  Economy (CAFÉ) requirement, which measures carbon dioxide emissions. Ford has met the requirement every year since the program was first introduced. Altering societal concerns, attitude, and lifestyles are major instigators of industry change. Growing consumer concerns towards environmental safety is a major driver of change in the automobile industry. Ford recognizes that manufacturing and operating automobiles have a significant impact on the environment. Ford has several initiatives to protect the environment. The first initiative includes developing advanced environmentally friendly vehicles. Ford was the first U.S. automaker to offer a full hybrid vehicle, which was also the first hybrid from any automaker in the SUV segment. The second initiative for Ford is to meet and exceed new clean air standards established by the Environmental Protection Agency. Reducing the environmental impact of our environment is Ford’s third initiative to protect the environment. Ford also aims to recycle and reuse materials by contracting with suppliers to attain environmental friendly parts and components. An example is Ford’s â€Å"Fumes-to-Fuel technology.† A plant’s painting operations are its largest source of air emissions. Ford has developed a process that uses paint fumes to generate electricity for its plant. The last initiative for Ford is conserving natural resources by taking part in global environmental programs to conserver energy and water. Ford’s developed a software program called â€Å"WET† that creates a facility-wide water balance to quantify individual uses of water and identify areas of opportunity. Safety is another concern that drives changes in automobile designs. Not only does Ford develop innovative safety technology the company also educates drivers. In 2003 Ford teamed up with the Highway Safety Association and a panel of safety experts to create a program called â€Å"Driving Skills for Life.† This program teaches teenagers develop the skills necessary for safe driving, beyond what they learn in standard driver education programs (â€Å"For a More Sustainable Future† 30.) Five Force Analysis Intensity of Rivalry Among Competitors The automobile industry is one of the most competitive industries in the world. The top competitors globally and domestically account for most of the industry’s market share. In the United States there are three top competitors known as the â€Å"Detroit Three†, formerly known as the â€Å"Big Three.† General Motors Corp., Ford Motor Co., and the Chrysler Group are the three companies that makeup the â€Å"Detroit Three†. According to Ward’s Automotive Reports in 2006 the â€Å"Detroit Three† brands accounted for 41.5% of passenger car sales in the United States; of this 41.5% market share, General Motors controlled 20.8%, Ford 14.1% and the Chrysler Group 6.6%. The â€Å"Detroit Three† market share is slowly dwindling due to globalization, which is another reason that leads to stronger rivalry among competitors (â€Å"Autos & Auto Parts Industry Survey† 9.) In the United States, according to Ward’s Automotive Reports, the top three foreign competitors that are trying to take over the U.S. market include; Toyota Motor Corp., Honda Motor Co. Ltd., and the Nissan Motor Co. Ltd. In 2006 Toyota, Honda, and Nissan accounted for 36.6% market share in the U.S. Individually Toyota controlled 18.7%, Honda 10.8% and Nissan 7.1% of the U.S. market share; in the truck category the â€Å"Detroit Three† brands account for 67% of Truck Sales in the U.S. Toyota, Honda, and Nissan are the foreign companies trying to compete with the â€Å"Detroit Three† (â€Å"Autos & Auto Parts Industry Survey† 9.) Lack of product differentiation is another factor that adds to the intense rivalry between competitors. Automobile manufactures products include cars, trucks and SUV’s. Even though there is a lack of product differentiation within the automobile industry there are many things that a manufacturer can do to alter design and production that make a product standout from its’ competitors. The innovation of technology and production causes intense rivalry between competitors because if automakers want to sell make the most profit they need to develop innovative technology that is a step ahead of its competitors and meets the needs of consumers or they need to develop innovative production techniques that are more  efficient and cheaper compared to its competitors. Ford is known for its innovation throughout the years; one example would be the moving assembly line. This manufacturing technique allowed individual workers to stay stationary and perform the same task repeatedly on multiple vehicles that passed them, this technique allowed Ford to be more efficient by producing many more vehicles than its competitors. Threat of New Entrants Although the automobile industry has very strong rivalries among competitors the industry will not see many new entrants in the future. There are several reasons why there is a low threat of new entrants in the automobile industry. The automobile industry has reached economies of scale and to be successful in the industry new entrants must reach economies of scale. Manufacturers must mass-produce automobiles so that they are affordable to consumers. Another reason why there are very few new entrants in the automobile industry is the very high capital requirement. Manufacturing costs, research and development costs, start-up costs, and advertising and promotion costs are a few costs that require huge amounts of costs in order to be successful in the automobile industry. With rising oil prices, increase in employee benefit costs, higher healthcare costs and also rising steel prices the threat of new entrants will remain to stay very low in the automobile industry. The current situation of the Automobile industry and the U.S economy is another factor that will keep the threat of new entrants low. Rising gas prices, low consumer confidence and shrinking home values are all factors that are causing decreases in automobile sales. Strong brand preferences and high degrees of customer loyalty is another reason there are few new entrants in the automobile industry. It is hard for a new manufacturer to attract customers that have brand preferences and are loyal customers, unless the manufacturer has a huge advertising and sales promotion budget or offer price discounts, these two things decrease profit margin. Threat of Substitute Products The threat of substitute products is very weak in the automobile industry. Automobile transportation for people makes it easy and fast to get from place to place depending on the length of their trip. Walking, biking, and riding trains, planes or subways are all substitutes to automobiles. These substitutes depend on the location of the person. People that live and work in the city will probably either walk, bike, or take a subway to work in order to avoid traffic or to protect the environment. The threat of these substitutes will always be low because it is convenient to have a car and new innovations toward environmentally friendly automobiles. Bargaining Power of Suppliers and Buyers In the automobile industry the bargaining power of the supplier is weak. There are so many part manufactures in the industry to choose from it is easy for a company to switch from one to another giving supplier no leverage. The automobile part sector is so big that it is divided into four business units: original equipment manufacturers, replacement parts manufacturing, replacement parts distribution, and rubber fabricating. According to a press release by Ford, the company spends around $90 billion on parts from more than 2,500 suppliers. Compare to the bargaining power of suppliers the bargaining power of buyers is a lot higher. Automobile manufacturers make profit from the sales of its’ automobiles. This means that manufactures have to produce automobiles that meet consumer needs and standout from its’ competitors. This is why consumers have such a high bargaining power because if they do not like a certain automobile they can choose another automobile from a different manufacturer at a relatively low switching cost. Analyzing the bargaining power of supplier and buyers, identifying the threat of new entrants and substitute products, and also analyzing the intensity of rivalry among competitors will allow a company to assess the competitiveness of a certain industry. SWOT Analysis Ford is the world’s third largest automobile manufacturer, and their brands are sold domestically and internationally, which include Ford, Land Rover,  Lincoln, Mazda, Mercury, and Volvo. In 2006 Ford received 30th place in the BusinessWeek-Interbrand ranking of the top 100 global brands in 2006. Another one of Fords’ biggest strengths is its’ industry leading innovative technology which is shown through product design, safety and production. Ford’s large network base is a strength to the company. Ford manufactures and distributes automobiles in 200 markets across six continents. Ford is also a very ethical company. For years, Ford has supported families in need. Ford encourages its employees to take two workdays per year to volunteer at an approved nonprofit organization. Although Ford is very successful it does have weaknesses. One weakness would be the decline in its’ market share. According to DataMonitor, Ford’s overall market share in the US has declined from 21.1 % in 2002 to 17.1% in 2006. Competition, globalization, low consumer confidence, and high gas prices are all factors that contribute to Ford’s declining market share. Another weakness of Ford’s is it’s declining profitability. At the end of 2006 Ford recorded revenues of $160,123,000 million which was a 9.5 % decrease from 2005. The operating loss of the company during 2006 was $16,950,000 million compared to a operating loss of $1,550,000 million in 2005. This means Ford had a net loss of $12,613,000 million in 2006, compared to a net profit of $1,440,000 million in 2005 (Datamonitor 4.) The automobile industry is full of opportunities. High gas prices and environmental issues have caused manufacturers to develop innovative technology. Ford is developing several technologies that are environmentally friendly and fuel-efficient. These vehicles include; biofueled vehicles, hydrogen internal-combustion engines and hydrogen fuel cell vehicles. Global demand is also an opportunity for Ford. Ford has developed strategies to bring its’ product to emerging markets like India, China and Brazil. The economies of these markets are continuing to grow along with its demand for automobiles. A major threat to Ford is its competition, which includes General Motors, the Chrysler group, Toyota, and Honda. Rising costs are also a major threat to Ford. Rising labor and employee benefit costs have forced Ford to reduce its  workforce and to close some of its vehicle assembly plants. The U.S. economy is also a threat to Ford. Consumer confidence is down due to rising oil prices and declining home values. The future of Ford and the automobile industry will continue to be worse in the near future if these threats continue. With rising costs and increased competition the U.S automobile industry does not look good. Industry sales are expected to decline in the future due to low consumer confidence, rising interest rates, and high gas prices. SUV and truck sales will decline the most due to the rising gas prices. There will be a higher demand for smaller cars that are fuel-efficient. The â€Å"Detroit Three† along with other U.S. manufacturers will increasingly focus its operations internationally to markets in Eastern-Europe, Latin America and the Asia-Pacific where production costs are cheaper. Environmental friendly technology and manufacturing will also continue to rise because of the growing consumer interest in protecting our world. Works Cited â€Å"Autos & Auto Parts Industry Survey.† Standard & Poor’s June 2007: 28 18 April. 2008. † For a More Sustainable Future.† Ford Motor Company June 2007. 19 April. 2008 â€Å"Ford Motor Company.† Datamonitor Business Information Center Nov 2007. Campbell University Electronic Library., Buies Creek, NC. 18 April. 2008 Ford Motor Company. 2008. Ford Motor Company. 18 April 2008 Ford.com/>. Gamble, John E., Strickland, A.J. III and Thompson, Arthur A. Jr. Crafting and Executing Strategy. McGraw-Hill/Irwin, 2007. â€Å"The North America Automotive Sectors.† Mergent Oct 2007. Campbell University Electronic Library., Buies Creek, NC. 18 April. 2008

Economy and Society of Historical Brazil Essay

This essay investigates how the political distribution of land and the employment of coerced labor on sugar plantations and mining affected the development of economies and societies in colonial Brazil. Distribution of land in colonial Brail was politically-motivated and strikingly unequal. Landlords owned huge territories and exerted considerable influence upon both people residing in that territories and local governance institutions. People who didn’t own land were completely powerless against the tyranny of landlords. Furthermore, unequal distribution of land had negative economic consequences: landlords owned more land than they could manage, so great areas were used in a wasteful way (Wright & Wolford, 2003). As concerns coerced labor, slavery also had a profound impact on Brazilian economy and society. Coerced labor was used in sugar-cane mills, gold mines, and sugar plantation. Slavery contributed significantly to the economic development of the country, especially of its North-Eastern parts. Coerced labor can be regarded as a major factor in turning Brazil into export-oriented agricultural economy. As for the influence on the society, resistance among slaves used to be a source of constant social tension. However, in cultural terms, certain elements of African culture eventually fitted well in the mainstream culture of the country, Capoeira being the most telling example. Also, slave trade become a source of quick accumulation of wealth by certain categories of population, like traders and slave market owners. Thus, the political distribution of land and use of coerced labor can be regarded as two major factor shaping the economy and social structure of colonial Brazil.

feudal traditon essays

feudal traditon essays America had skip the feudal stage, she never had a feudal system. Unlike the European countries, struggle many centries with the old feudal system. Many European countries had to had revolutions to overturn the old feudal system. Louis Hartz pointed out that liberalism seemed natural to America. The lack of a feudal tradition in United States affected American life in many ways. The system of feudalism was developed gradually between the eighth and eleventh centuries. In the early feudal stage, when a freeman gave up his title to his land he became the lord's "man" and promised him his loyalty. Officially the serfs were "unfree". However, they were not the property of other people, like slaves. Serfs were bound to the land and not to any particular lord who held it in fief. They could not leave the place where they were born, but neither could the lord send them away. It was an obligation between the lords and serfs. In the beginning of America, those men who settled in the new world were the men who fled from the feudal system in Europe. United States was created without any revolutions and without any kings. Liberalism was so natural to American. Without feudalism, American believed they could do whatever occupations if they wanted. They didn't had to follow the same occupations passed by generations and generations, like the feudalism. American also believed they had to be independent, and they had take care themselves. They had to worried about their own livings. In feudal system, the serfs were taken care by their lords. The lords had to provided the housing, food, clothing...to their serfs. Also, without feudalism American could believed in whatever religions they wanted. In feudal system, people only could believed in one religion. Enrico Augell and Craig Murphy pointed out, denominational religion, liberalism and a faith in science were the "common sense" to American. Without any revolutions in...

Furloughs In Place of Layoffs

Furloughs In Place of Layoffs Free Online Research Papers Abstract Many organizations are turning to furloughs as an option over layoffs. In the short-term, furlough will optimize the cost of productivity while closing the budget gap. In the long-term, the organization is saving because they are able to keep their top employees and not have to hire and re-train staff. In our current time of economic crisis, furlough is an optimal choice for reducing costs and maintaining the integrity of the organization in the least invasive aspect. Executive Summary Are furloughs an optimal option over layoffs in order to reduce a deficit? I currently work at the University of California, San Diego which is part of the implementation for furloughs in an attempt to reduce the deficit without increasing the unemployment rate in California. Currently the state of California is in a 26 billion dollar deficit and climbing, and has resulted in furloughs for state employees. Furlough’s are defined as the placing of an employee in a temporary non-duty, non-pay status because of lack of work or funds, or other non-disciplinary reasons (Bellafronto Cleveland, 2009). In the current difficult economic times many employers are being forced to make difficult decisions to keep their businesses viable, including laying off employees to reduce payroll costs. More employers, however, are considering alternatives to layoffs. These alternatives allow employers to retain staff, particularly top talent and employees with institutional knowledge (Bellafronto Cleveland, 2009). Employers understand that keeping tenured and often loyal employees employed in anticipation of an inevitable upswing in the economy will also reduce the need to re-hire and re-train personnel which is a very costly and timely endeavor (Heathfield, 2009). Although reducing employee salaries may be an easy solution to an economical crisis, such reductions are often discarded as too demoralizing and often leads to employees looking for new employers. In order to avoid losing valued employees, many employers are attempting to reduce labor costs without layoffs are considering two alternatives: 1) mandatory furloughs and 2) reduced work hours. When done correctly, these can result in cost savings, but there are important legal considerations to keep in mind. This paper will discuss the economical impact of furloughs (Bellafronto Cleveland, 2009). Definition Employee furloughs is a mandatory time off work with no pay. Usually furloughs are implemented as an alternative to a layoff. Employee furloughs can occur in both public and private sector organizations (Heathfield, 2009). Furloughs are often implemented when revenue or projected revenue fails to match expenses. Currently, the state of California, is in a budget crisis and there is a mandatory employee furlough being implemented amongst all state employees. At the UC system all 10 campuses are required to take a mandatory furlough or pay cut. During mandatory employee furloughs, employees are required to take unpaid or partially paid time off of work for periods of time (Heathfield, 2009). The employees generally have either scheduled time off or a set amount of days required to be taken off per month or throughout the fiscal year (Bellafronto Cleveland, 2009).. To schedule employees with a contract, including union-represented employees, for employee furloughs, the contract must be renegotiated. The negotiations about employee furloughs generally include a call-back date (Heathfield, 2009). In the state of California the UC school system gave each university the option between mandatory furlough and reduced salary. All of the UC’s individually held town meetings to hear the voice of the employees to analyze what the employees preferred. The employees voted and pushed for a furlough instead of a cut in salary. Although the furlough does ultimately result in a reduced salary, it is demoralizing to have employees work the same amount of hours for reduced pay. As an employee of the UC system, I also voted for the furlough. I strongly believe that it is easier to accept a non-paid day off than a reduction in salary. Fortunately, during employee furloughs, benefits usually continue, which is one of the employee furloughs differentiating factors from a layoff. In addition, other companies have implemented work sharing programs. Work sharing is an Unemployment Insurance program that allows an employer to reduce the number of hours an employee works during a week while unemployment compensation makes up some of the difference in income. Since the current issue is that the state is in a budget deficit, utilizing unemployment would not be cost efficient for the state (Heathfield, 2009). Factors or Costs According to the UC President Mark G. Yudof, effective July 16th, 2009, the UC Board of Regents approved a systemwide furlough as part of a plan to offset $813 million in state funding reductions for the 2008-09 and 2009-10 fiscal years. The furlough is viewed as a short-term solution to close the deficit and manage the budgets under the new budget for the upcoming fiscal year. If the furlough is successful, the university will be able to remove the furloughs and ensure long-term success. Although the university is optimistic about the furlough, it is demoralizing and difficult for the employees to endure. In the current economical situation, and with the constant news of businesses laying off employees, UC employees are appreciative to have a furlough in lieu of a mass layoff. Most California business are amidst a human resources hire freeze, and it is difficult to obtain new jobs. The hire freeze amongst other corporations gives the UC an increase market power. Although, we are amidst a furlough, the furlough is only applicable to non-federally paid employees. The UC campus is made up of both federal and state funds. Fortunately, the furlough is only applicable to state funded employees, such being the case that the federal funded research programs are still very much thriving and now have market power with regards to hiring highly qualified applicants. According to our human resources department, for each job opening we have over 300 applicants and most of the applicants are over qualified but in the current economy are willing to take any job. The university is able to obtain a highly qualified candidate for a lower salary. The federal research funds are an important revenue source for the UC system. These funds are released to the UC along with a 54.5% indirect cost rate that is associated with every dollar spent. For example for every $500,000 that is awarded to the university, $272,500 is allocated as indirect costs. Indirect are allocated as funds are spent, therefore, for every dollar spent 54.5% is revenue for the university. It was a wise decision to exclude the federal research funds of the furlough, because in the end the university would lose revenue and if the funds are not spent by the time allotted, the funds are to be returned to the government. In addition, it is calculated that for every 1 million dollars awarded by the federal government, 17 jobs are created. Measurement According to the UC California Budget News (2009), the UC system faces an unprecedented $813 million deficit in state support. The furlough plan is part of a system wide strategy to address the deficit. In an effort to lessen the hardship on employees, the UC has devised a plan is based on a sliding scale. Employees who have higher salaries will have a larger number of furlough days and a correspondingly higher salary reduction. Salary reductions range from 4 -10 percent. The UC President estimates that the furlough implementation will produce a savings that is estimated to cover about one-quarter of the universities budget gap. On a personal note, I will incur 16 furlough days which is equivalent to a 6% salary cut (UCSD, 2009) In addition to the furloughs, the university also plans to increase student fees in order to eliminate another quarter of the budget gap. All of the departments have been given strict guidelines for immediate debt restructuring, drastic cuts in spending on campuses and within the Office of the President will make up the remainder of the budget gap (UCSD, 2009). Analysis Implementing a furlough is a way to reduce expenses in order to close the budget gap. In doing so, employers are able to keep their staff, and will save money in the long-term as well as the short-term. Hiring new staff is very expensive and not cost-efficient, there are costs associated with training, background checks and it often takes a minimum of 6 months for an employee to get caught up to speed with the other employees. The furlough is a more favorable option to layoffs for employees as well as employers. Although the employees are required to take mandatory furlough days, the workload or demand is not decreasing. The university is constantly in high demand with regards to education as well as research. We are now facing the issue of supply, where supply is the laborers needed to run the university. There are a lot more expectations given to employees who have to do the same amount of work in less demand, and this could affect the productivity of the university. Summary In summary, furloughs are an optimal option over layoffs when used to reduce a deficit. Cost analysis have shown that furloughs are both a short-term as well as a long-term solution to budgetary deficits. The UC system proved to be a great example of an organization that is using this options in order to maintain productivity as well as maintaining the integrity of the UC system. References Maurice, S. Thomas, C. (2008). Managerial Economics, 9th ed. New York: McGraw-Hill. Bellafronto, E. Cleveland B. (March 5, 2009). Furloughs may be smarter than layoffs. Legal times. Heathfield, S. (2009). Employee Furloughs. About.com http://humanresources.about.com/od/glossaryf/g/furlough.htm UCSD. (July, 2009). University of California Budget News. universityofcalifornia.edu/budget/?page_id=87 Research Papers on Furloughs In Place of LayoffsMoral and Ethical Issues in Hiring New EmployeesTwilight of the UAWAnalysis of Ebay Expanding into AsiaLifes What IfsThe Effects of Illegal ImmigrationPETSTEL analysis of IndiaThe Project Managment Office SystemNever Been Kicked Out of a Place This NiceOpen Architechture a white paperResearch Process Part One

MGMT455 U1 IP Theory X & Y Research Paper Example | Topics and Well Written Essays - 500 words

MGMT455 U1 IP Theory X & Y - Research Paper Example This theory tends to adopt the authoritarian style of management. Whereas, Theory Y assumes that individuals take responsibility and they do not need control and direction on each step, they are active, motivated and consider the work as the natural part of their lives, and are capable of achieving higher goals in their jobs. This theory is considered is the participative style of management. One style cannot be used in all situations. It totally depends on the circumstances and conditions of the environment and employees. The management can be authoritative in some cases and can also be practical in other cases while a mix of both the theories can result better. The practices of Theory Y can turn out with better results as this will develop confidence and courage among the employees to work in a relaxed and a comfortable environment. For-example, well and high structured call center operations can get a certain amount of benefits by allowing their employees to perform and respond to customers on their comfort and knowledge level. So, by adapting to Theory Y practices they can appreciate and encourage the overall knowledge sharing processes. The difference between Theory X and Theory Y management is quite noticeable. In my opinion, the management of Theory Y is much more effective and productive than Theory X, as the authoritarian management of Theory X is much adopted in most of the huge firms and organization and leaves less comfortable environment for the employees, whereas most of the organizations allow participative management of the employees which prefer self motivation and appreciate new ideas from the individuals. Considering Theory Y management, many of the organizations use decision making processes, in which each employee has the opportunity to share his thoughts and ideas. There are basically two major types of democratic decision making, including, persuasive democratic management and consultative

Project2 Essay Example | Topics and Well Written Essays - 750 words

Project2 - Essay Example After site visits to the corporate headquarters and one manufacturing plant, along with interviews of both key personnel and employees alike, careful consideration have been made of the many situations facing MPC. We have decided the following problems need to be fixed in the order they are referenced. The eighteen month time period that the company projects for modernization is realistic, provided they continue to use outsourcing for most of the projects. The first problem that needs to be addressed is the issue of the mainframe computer. ANDC agrees with Ms Hsu that the mainframe is a money pit and will only get worse as the machine gets older. Bradley University converted in the same fashion in the late 1990’s, an old report in the field of technology but relevant to this situation nonetheless (Bradley 1997). Their report is honest, listing both benefits (Same as MPC; cost and maintenance) and realized disadvantages. One was that they also experimented with environments oth er than Windows (including DOS and MAC) and eventually had to revert to a strictly PC based environment. Not only would that be standardized but since most users are familiar with Windows, new system training was mineralized. The first benefit realized would therefore be the costs. One thing Bradley stated they would do different was purchasing network ready servers and buying them as identical systems from one vendor. A check with Dell (2012), shows that a new computer to be used as a rack server would cost around $6,000 apiece. Since MPC would require three servers, database, web, and internal (intranet), the initial cost would be around $20,000, since Dell would also send the servers preloaded with Microsoft Server 2012 for a predetermined cost (based upon number of clients per machine). A vendor such as Dell would also be able to provide an answer to another of the customer’s questions. Long term maintenance agreements can be purchased for a nominal fee and the company ev en offers lease arrangements. In order to keep the mainframe functioning until shutoff time, with minimal service interruption, it is recommended that both environments function side-by-side. The Intranet can be transitioned first, in conjunction with the database server. One advantage of the Intranet system is the fact that the internationally remote manufacturing plants can also be connected securely, so that redundant systems would not be necessary; a simple internet connection is all that is required. Then the web server can be up and running well before the eighteen month deadline. During the changeover and for six months thereafter ANDC personnel will be at company headquarters to ensure a smooth transition, during which time ANDC will assume full responsibility for changeover. Another financial consideration MPC should consider is upgrading their cabling to T-1 throughout. The increased traffic would probably soon result in overloading their current system (Mitchell 2012). Th e second problem is the relatively antiquated call center system with a non-functioning web ordering system. One of the major customer complaints are long waiting times for customer service (Your call is important to us) and is the main reason more customers are turning to the internet for ordering and service. MPC is correct in that some customers will continue to want to call but that call volume will probably be less than ten per cent of what it is now (Bleuell 2009). Fujitsu (2012) presents the case of a Japanese optical