Economics Questions Essay Example for Free

Economics Questions Essay 1. Housing Prices 1.1 Fundamental and Non-fundamental Factors Pricing of a product depends on many factors such as demands for the product and how excessive the product exists in the market (supply). Housing price is influenced by `fundamental` and `non-fundamental` factors. The fundamental factor inn housing price is about supply and demand (Himmelberg, Christopher, and Sinai, 2005). 1.2 Market Bubbles and Fundamental Factors The question is whether market bubbles emerge from fundamental factors or what evidence that leads to a bubble in house prices. The fundamental factor inn housing price is about supply and demand (Himmelberg, Christopher, and Sinai, 2005). However, people know the theory of supply and demand are only the first steps towards understanding how setting up the market prices of a product. Furthermore, the theory also helps people to understand the way in which these prices help shape production and consumption decisions. It means that the law of supply and demand will explain any situation that might exist if the market price is too high and vice versa. At any given moment, where the market price is too high, we might expect that consumers will leave sellers since they are already have other options having the same characteristics, size, and the tastes with lower price. The supply-and-demand theory revolves around the proposition that a free, competitive market does in fact successfully generate a powerful tendency toward the market-clearing price. Without any conscious managing control, a market spontaneously generates a tendency toward the dovetailing of independently made decisions of buyers and sellers to ensure that each of their decisions fits with the decisions made by the other market participants. Were this tendency to be carried to the limit, no buyer (seller) would be misled that it wastes time attempting to buy (sell) at a price below (above) the market-clearing price (Kirzner, 2004) Since housing market attracts many investors to put their money for hope that it will raise significantly over times, the housing prices may reach a bubble period. The raise in house prices is influenced by fundamental factors, the supply and demand. This makes sense since the demand for having houses may be exploded when the bubble exist. By definition, bubble situation occurs when housing price is high because buyers/investors predict that the selling price of houses will rise dramatically in the future (Himmelberg, Christopher, and Sinai, 2005). 1.3 Current Housing Prices and the Bubble The housing prices continue to rising today. There are many underlying factor behind the uplifting housing prices. According to McCarthy and Peach (2004), one of the cause behind the rising housing price is because the existence of a speculative bubble in this asset market. This condition present potential threats as the asset market could experience a collapse that further harm the U.S. economy. Another reason of the uplifting housing prices is that the some home buyers Have the willingness and intention to buy the rising housing prices for hope that the houses will rise significantly in the future (McCarthy and Peach (2004). 2. Urban Land Theory Given the case that the town of Valley stream, Long Island is 20 miles by car from midtown Manhattan and in 2000, the median home value was $199,800. The town of Dix Hills, Long Island is 36 miles from Midtown Manhattan and the median home value in 2000 was $386,100. Explain why these facts do or do not disprove the standard `urban land theory` as formulated by economists such as Kain and Alonso. The case does not comply with the urban land theory since the price of housing does not merely relate to distance from a city center or any places of interests. Many factors or preferences have great impacts towards customers’ decision on buying housing that further influences the price as following: a) A Change in Buyers’ Incomes and Wealth According to Howard Community College, â€Å"the demand for most products will go up of buyers’ real incomes or real wealth, i.e., their purchasing power rises.† In the case of housing, if a buyers of the housing manage to earn $25,000 next year instead of $10,000 this year (and assuming there is no increase in the price level), it means that the costumer’s real income increases. This situation will affect the customer’s spending such as their preferences to buy houses that are more expensive. b) Buyers’ Tastes and Preferences Another factor that influences the demand for a product is buyers’ tastes and preferences. In case of housing, the existence of emotional benefits such as good neighborhood or areas where there are celebrities will raise the price of housing in the areas. In addition, the availability of transportation to distance location may increase the housing prices. Another theory says that fundamental factors, the supply and demand, may have influence towards the pricing of cities. Third, changes in underlying fundamentals can affect cities where in locations where housing supply is inelastic, prices tend to be higher relative to rents (McCarthy and Peach, 2004) c) The Prices of Related Products or Services In the housing case of Valley stream, Long Island and Dix Hills, Long Island, the difference of pricing may happen if in the areas there are many housing or other substitutes like apartment, condominiums, and townhouses. Therefore, it does not matter a housing is located hundreds miles away from the downtown, as long as there are value added that customers will obtain when purchasing the houses in the are, the price could be much higher than that near to a city center. The situation explains why Valley stream, Long Island that is 20 miles by car from midtown Manhattan and in 2000, the median home value was $199,800 is priced lower than town of Dix Hills, Long Island is 36 miles from Midtown Manhattan and the median home value in 2000 was $386,100. d) Buyers’ Expectation of the Product’s Future Price This factor will play a role when, for instance, Dix Hills, Long Island announces that the price of their houses will increase next month or year since there will be a shopping centers of any place of interests that located near to the housing. This situation will drive consumers to buy the houses in Dix Hills, Long Island quicker. Therefore, this kind of determinants will increase current demand for the housing in Dix Hills, Long Island and shift the demand curve to the right. 3. Feds and booms and busts in the housing market In the New York Times column of May 27, 2005 economist Paul Krugman wrote: After all, the Feds ability to manage the economy managing comes from its ability to create booms and busts in the housing market In 2004, inflation had picked up and had raised questions in the minds of some people about whether it might be on a rising trend that poses a risk to price stability. Total consumer price inflation as measured by the chain price index for personal consumption expenditures (PCE) has risen from 1.4 percent over the twelve months of last year to an annual rate of 3.0 percent over the first four months of 2004. Donald L. Kohn, a Governor of the Federal Reserve, says that price stability is Fed’s responsibility since it allow businesses and households to plan and operate without worrying about increases in the general price level over the long run is how we contribute best to fostering economic efficiency and rising standards of living (â€Å"Remarks†). Inflation has closed relationship with interest rates. In the situation where retail prices experience a significant increase, people might expect that interest rate will rise as well. The reason is that government try to control the amount of money exist in the market. According BBC News (2005), the increase of oil price and Katrina storm have caused investors in Wall Street to think of Federal Reserve that will likely to push up interest rates rapidly to control inflation. In the United States, the Treasury yield curve is the first indicator of all domestic interest rates and it influence global rates setting. Therefore, in the U.S., interest rates on all other domestic bond categories rise and fall with Treasuries yield. Below is the figure explaining the impact of inflation and interest rates on the Yield.

What Problems Do Mega Cities Cause Environmental Sciences Essay

What Problems Do Mega Cities Cause Environmental Sciences Essay With the open markets and the liberasation of the economy in 1991 India went on a fast track economic boom with an 8-9% GDP growth per year. Urban areas have experienced an unprecedented rate of growth over the last 30 years. India is considered to be one of the most attractive countries for industry in the world as the vast population and the low living standards ensure the cheap manpower (when a normal salary in Europe or America is 40 dollars per day the 80% of the population in India lives with less than 2 dollars among them the 34.7% with less than 1 dollar per day) and thus the viability for the industries. As a result the mitigation phenomenon to big cities from rural areas has started the last decades and cannot be controlled. Unfortunately as it is going to be explained below the infrastructure lacks and so does not usually ensure a friendly and sustainable place for the immigrant-dwellers. Creation of mega-cities During the last 50 years Indians population has more than doubled (today 1.2 billion), but the urban population has grown nearly five times (H.Taubenbock,2008). Right now more than 50% of the whole earths population live in urban areas (Clark, 2003). The graph below shows the population growth of Mumbai Graph 1. Ref (M.Barke, 1998) More than 20 huge cities (with over than 10 million inhabitants) around the world were identified; three of the cities, Mumbai, Delhi and Kolkatta, were on the Indian subcontinent. Mumbai with 3.1% and Delhi with 4.1%, the highest, population growth rates in the world. Cities and their growth should be examined carefully as they cover only 2% of the earths surface and consume 75% of all resources as well as producing 75% of all waste (Girardet, 1999; UNFPA, 2007). Â  Picture 1 table 1 (Ref. H.Taubenbock, 2009. Computers, Environment and Urban Systems) Location of Indias large urban agglomerations and population growth in the 9 largest Indian cities in million of inhabitants. Lack of infrastructure-Problems In the new mega cities with the uncontrolled urbanization a huge percent of the population is accommodated in slums without houses, hospitals, hostels, roads, no kind of city planning and finally but most importantly no sanitation, drainage system and water treatment. Below there is a photo which shows the phenomenon of the slums in the huge cities in India. Picture 2 (Ref. http://www.google.gr/images?um=1HYPERLINK http://www.google.gr/images?um=1hl=eltbs=isch:1q=slums+in+indiasa=Nstart=306ndsp=18HYPERLINK http://www.google.gr/images?um=1hl=eltbs=isch:1q=slums+in+indiasa=Nstart=306ndsp=18hl=elHYPERLINK http://www.google.gr/images?um=1hl=eltbs=isch:1q=slums+in+indiasa=Nstart=306ndsp=18HYPERLINK http://www.google.gr/images?um=1hl=eltbs=isch:1q=slums+in+indiasa=Nstart=306ndsp=18tbs=isch:1HYPERLINK http://www.google.gr/images?um=1hl=eltbs=isch:1q=slums+in+indiasa=Nstart=306ndsp=18HYPERLINK http://www.google.gr/images?um=1hl=eltbs=isch:1q=slums+in+indiasa=Nstart=306ndsp=18q=slums+in+indiaHYPERLINK http://www.google.gr/images?um=1hl=eltbs=isch:1q=slums+in+indiasa=Nstart=306ndsp=18HYPERLINK http://www.google.gr/images?um=1hl=eltbs=isch:1q=slums+in+indiasa=Nstart=306ndsp=18sa=NHYPERLINK http://www.google.gr/images?um=1hl=eltbs=isch:1q=slums+in+indiasa=Nstart=306ndsp=18HYPERLINK http://www.google.gr/images?um=1hl=eltbs=isch:1q=slums+in+indiasa=Ns tart=306ndsp=18start=306HYPERLINK http://www.google.gr/images?um=1hl=eltbs=isch:1q=slums+in+indiasa=Nstart=306ndsp=18HYPERLINK http://www.google.gr/images?um=1hl=eltbs=isch:1q=slums+in+indiasa=Nstart=306ndsp=18ndsp=18) The picture above shows the largest slum in Asia at the heart of Indias financial capital Mumbai where millions of poor in India live in such conditions. The rapid and extensive sprawl of the urban population cannot provide the urban planners with the information needed in order to provide plans with the appropriate amenities such as water, sanitation and electricity. Main arising problems include: (Ref. R.K.MUTATKAR,1995) a) Housing: As the urban population has been increased from 20% in 1971 to 38% in 1991 and is still rapidly increased urban land becomes very precious and insufficient to cover all the needs. As a result 30% of the population lives in slums and 45% live in single room tenements. Around 20% of houses are made from mud and thatch and one third of the population has no access to a lavatory. b) Water supply: Common water posts are provided as the water in cities is inequitable. In Ahmadabad for example, 25% of the population consume 90% of the water whilst the rest of the population 75% have to consume 10% of water. Approximately the 34% of the poor urban dwellers do not have a piped water supply. c) Sanitation: Despite the improvement in providing sanitation facilities, most of the towns depend on open surface drains for the waste water disposal which in terms is vulnerable to communicable diseases from flies, bacteria e.t.c. Also where underground sewerage system exist there is a danger of seepage in the corroded pipes which may cause great health hazards like hepatitis and diarrhoea epidemics. d) Pollution: Air and water are mainly polluted from transport and industries. In Calcutta for example there are 11,516 factories and 525,000 cars. Also as the 70% of the population is using coal as cooking fuel, it is subsequently one of the most polluted cities in the world. Unfortunately rivers are heavily polluted by industrial wastes. e) Health care delivery: Despite the provision of municipal dispensaries, public hospitals and private clinics and the modern imported technologies the medical system does not operate normally. As the 80% of medical practitioners cater the needs of only 20% of the urban population. The public hospitals and its stuff shows a very apathetic attitude to the patients in the public hospitals which enforce them to prefer the private clinics. f) Transportation problems: The unplanned design of slums does not usually satisfy the efficient transportation of the workers. Due to the huge population concentration, the big distances to the work places and the undeveloped unfriendly to the environment transportation modes it is estimated that the transport sector is responsible for 70% of the national CO2 emissions. g) Morbidity and related problems: In these over-populated areas (regions), communicable diseases like leprocy and venereal are in high levels. The poverty leads the men to alcoholism and few women to prostitution. Crime rates have been increased tremendously as well as death in the cities due to accidents and lack of transport and road safety education. i) Climate change/fast growing cities: Except the lack of infrastructure and the living problems which that causes to slum dwellers mega cities contribute seriously to the climate change. Are charectirized from high levels of energy consumption, burning of fossil fuels and concentrated activities in disproportionate land. Unfortunately the overpopulation of these sites and their rapid expansion to the suburban areas makes the problem even worse and impossible to be solved apace. In conclusion urbanization problems have arisen from rural poverty and unemployment which motivated the citizens to migrate to big industrial cities. There is not however the appropriate infrastructure to accomodate the new comers or proper planning of transport, water, drainage and health care delivery system. Mellenium Development goals for India (Ref.Economy, Investment Finance Reports.2006) The Millennium Declaration adopted 8 development goals for India are briefly presented below. The majority of them are relevant to urbanizations arising problems. 1) Eradicate extreme poverty and hunger: India must reduce by 2015 the proportion of people below poverty line from nearly 37.5 percent in 1990 to about 18.75 percent. National Rural Employment Act will help to reduce the poverty ratio even further. 2) Achieve universal primary education: India should increase the primary school enrolment rate to 100 percent and wipe out the drop-outs by 2015 against 41.96 percent in 1991-92. 3) Promote gender equality and empower women: The female participation at all levels should be promoted to reach a female male proportion of equal level by 2015. 4) Reduce child mortality: The target is to reduce under five mortality rate (U5MR) from 125 deaths per thousand live births in 1988-92 to 42 in 2015 5) Improve maternal health: India should reduce maternal mortality (MMR) from 437 deaths per 100,000 live births in 1991 to 109 by 2015. 6) Combat HIV/ AIDS, malaria and other diseases: As the prevalence rate has increased from 0.74 per thousand pregnant women in 2002 to 0.86 in 2003, this increasing trend needs to be reversed to achieve MDG 6. 7) Ensure environmental sustainability: The proportion of population without sustainable access to drinkable water and sanitation is to be halved by 2015 and India is on track to achieve this target. Also this step involves the protection of forests and presrvation of natural resources. 8) Develop a global partnership for development: Basically meant for the Developed Countries to provide development assistance to developing countries. These goals are intended to confront poverty, illiteracy, hunger, lack of education, gender inequality, infant and maternal mortality, disease and environmental degradation. Solutions social-environmental-economical point of view (Ref. Manoj Roy,(2009)) A number of solutions and measures should be introduced in order to contribute in the elimination or at least decrease of the pre-mentioned problems. Activities and measures will involve land use planning, climate change and city sustainability towards an overall urban sustainability which in terms will lead to a better life type now and maintenance of it for next generations. 1) Economic activities will invole: a) Decentralisation by generating new jobs, work places in suburban areas or support to those existing in the rural areas in order to motivate the dwellers to stay, that will lead to a more balanced employment distribution. b) Establishment of export zones for promoting their production and linkages between the formal and informal sectors as well as linkages between the rural and urban economy. c) Support to micro-enterprises and especially those developed by women. Non governmental organizations could also provide micro-credit. 2) Social and institutional activities will involve: a)Measures to encourage the public participation in the planning process, strengthening the participation of municipal authorities and the adoption of a strategic planning approach. b) Land use plans and effects of land use alterations, research and development in the construction methods and building materials, mechanisms for private contractors to promote low cost housing scheme and development of secondary towns with the prospect to accomodate slum dwellers. c) Enhance community participation in slum improvement project components, urban infrastructure improvement projects, measures to reduce the total population and health service programmes. 3) Environmental activities will involve: Respect and proper implementation of the environmental laws, reduction of travel time, preservation of rural areas with high agricultural and ecological importance especially when these are located in or near to urban areas. Mitigation of flood, recycling, waste water disposal and sanitation and generally measures to reduce the pollution from industry and vehicles. As climate change is of high importance nowadays few economic, social and environmental measures which could reduce the phenomenon are presented. Economic measures related to climate change would be the enhancement of financial (the one which allows productive activities to get going)and social (shared values and mutual understanding) capital by reducing the travel time and distance, congestion, emmisions, industrial pollution and the promotion of sustainable technology (environmental measures as well). Synergy between the urban and rural climate change resonses is needed as well as reduction of vulnerability of poor and women. Social/institutional measures target on public awareness, education for appropriate environmental behaviour, reduction of carbon sinks, enhancement of responsive capacity of the local authorities e.t.c. Resilience of the built environment plans and energy efficiency with protection and measures against the vulnerability of the poor. Engineering role and contribution The problems presented above should be confronted and are big challenges for the humanity as whole. In this approach which will have as targets the above pre-mentioned goals which will lead to the improvement of human lives with respect to the environment, the role of engineers is really vital. For the city planning and development series of data, plans and knowledge are needed like scientific background, geo-information technology, planning support systems, urban morphology etc. All of the above in order to be efficiently used will be analysed and used from civil engineers. Especially civil engineers which are involved with the majority of projects such as sustainable city planning, development of existing infrastructure (strengthening of existing constructions, maintenance e.t.c), transportation issues (design of roads), waste water treatment and sanitation mechanisms e.t.c will be responsible for the sustainable development and future progress of these regions.

Tri-State Water Wars: Impact on Metropolitan Atlanta’s Future Growth Es

Tri-State Water Wars: Impact on Metropolitan Atlanta’s Future Growth â€Å"Whiskey is for drinking. Water is for fighting.† - Mark Twain Metro Atlanta is on a collision course with reality – and the shock of this collision will have profound political and economic implications for future growth throughout the Southeast. The core problem is that Atlanta’s runaway growth will soon outstrip the available water supply (Corps, 1998). And if Atlanta continues to increase its water consumption until the maximum limits are reached, the effects on downstream users will become catastrophic, both economically and environmentally. Without multi-state agreements concerning changes in usage patterns, this could bring about intervention by the Federal courts that would effectively halt Atlanta’s development until the usage disputes were resolved. By comparison, some western states water lawsuits have lasted for decades, typically freezing usage patterns â€Å"as is†. (Barr, 1999) The southeast can ill afford to have Atlanta – the region’s single largest engine of economic growth – brought to a standstill because of this issue. The root cause of the entire regional problem is the combination of Atlanta’s high growth and an inadequate water supply. No US city as large as Atlanta is founded on a river as small as the Chattahoochee. (NY Times) If Atlanta were the size of Birmingham, there would be no crisis whatsoever. In addition, the lack of a usable underground aquifer system in North Georgia limits the options for expanding the available supply. (ITT) The underlying granite subsurface prevents the formation of large underground water reserves, which are often a significant water source for other large cities. Only by transfe... ...raci. â€Å"Conservation helped avert more severe water limits.† USA Today. July 16, 2002 Web Sites: â€Å"Tri-state pact essential to growth.† Congressman Bob Barr. May 24, 1999, official web site http://barr.house.gov/newsdescr.asp?RI=435 â€Å"Atlanta's Unquenchable Thirst Sparks Dixie Water War.† By Marcello Ballve, Pacific News Service, Mar 11, 2002 http://www.pacificnews.org/content/pns/2002/mar/0311water.html â€Å"Tri-State Water Wars.† Southern Environmental Law Center http://www.selcga.org/originals/water_wars/water_wars.shtml â€Å"The Alabama-Coosa-Tallapoosa Water Deal: The Good, The Bad, and The Ugly.† By Brad McLane, Executive Director, Alabama Rivers Alliance http://www.alabamarivers.org/tristatewars.htm ITT Industries – Guide to Global Water issues Atlanta and the Southeast, by Charles Seabrook http://www.itt.com/waterbook/atlanta.asp

Essay --

1. Introduction The aim of this report was to discuss how the climate change and urbanisation processes affected the design and management of wastewater systems in one of the countries of choice. In this report as an example China was used to describe the influence of urbanisation and climate change on design and management of wastewater systems. Rapidly growing human population is expected to exceed nine billion people by 2050. Urban areas in developing countries are affected by rapid growth of population and poor infrastructure development. Already half of the human population live in cities where the infrastructure is not developed enough to sustain wastewater production. As the population increases so the production of waste water. In addition, climate changes affect the weather patterns, which directly influence a hydrological cycle. As a result one area suffers from rain fall shortage and others from more intense rainfalls. 2. China In recent decades, China’s population has rapidly grown which caused rapid economic growth and increased the rate of urbanisation. At present china has one of the fastest urban population growth rate in the world.(UNDP 2013) All this happened along with proceeding environmental destruction and serious water pollution. The growing population of China has a high water demand as well as a lack of sufficient wastewater infrastructure. Those factors result in poor water quality and severe water shortages. In 2002 the rate of municipal wastewater treatment in China was 39.9 percent. (U.S Department of commerce 2005) Figure 1 Urbanisation and the urban population in China (CEIC 2012) â€Å"Macroeconimic Database for emerging and development markets. (source:www.stats.gov.ch) Water resources and water c... ...ns Benefit/cost analysis Environmental Impact Legal mandates 7. Develop implementation plans, including timeframe for implementation 8. Monitor and reassess Source: ( Rosenzweig et al. 2007 ). Figure 6 Conceptual model of a sustainable water resource system (source Hecht et al.2012) 5. Conclusion High rates of urbanisation and climate change in China has created many problems related to water resources. An increase in the population and a high urbanisation rate have effected and increased wastewater production. The Chinese water market is already under a huge amount of stress. The quality and quantity of water resources have been depleted due to the inefficient use of water. In terms of wastewater management China requires a long term strategy with sustainable solutions which will take into account climate change and the rate of urbanisation.

The Destructive Power of Pain Essay -- Expository Essays

The Destructive Power of Pain There are two types of pain that we all experience, physical and emotional (or mental). Physical pain is a signal of the nerves; therefore it is something that is tangible, something that we can prove is there and something that we can feel. Emotional pain is hurt on the inside of one's soul. It cannot be expressed; it is only a feeling in the soul. According to the Christian view, pain makes someone a better person. However, some people disagree with this because they believe that pain destroys a human being's self-worth. Physical pain is a signal given by nerves that an organism is in a potentially hurtful environment. This is the type of pain that hospital in-patients experience, and it often incites a negative reaction when it is in an extreme form. Constant pain can distort the patient's view of the world and surroundings and can make him/her self-absorbed with alleviating the pain. To others, the patient may appear selfish, impatient, quarrelsome, and greedy, but his actions are merely a result of the pain that they are suffering. Jim Jones, a hard working construction worker, was severely injured one day when a sheet of metal fell on him and severed his leg. While in the hospital, he became withdrawn and very short -tempered with the nurses, and he was angry if he was not cared for immediately. He was in so much pain that he lived from one dose of morphine to the next and if the nurses were even one minute late he became impatient. It was as if he thought that there were no more patients in the hospital besides him. When his family came for daily visits he became very quarrelsome and didn't want to accept any help from them, because he felt that he was useless and could no longer contri... ...ng, such as pain. An example of this is to try and describe the color blue to somebody. One can say it is like the color of the sky, or the ocean, but he can't really say what it is. If he could, he could describe blue to a blind person. Even though we don't know how to talk about pain, we can treat it. Medicine is able to stop the nerves from sending a message to the brain. Psychiatrists are able to find the root of a problem and alleviate it. There are some who would say that God is the only one able to take away pain (both physical and emotional). However, others would say that pain can never truly be taken away, just subsided. And still others say that pain really isn't a thing, it is an illusion that can be overcome. Anybody who has hit their thumb with a hammer would swear that this isn't true. If one were to ask them why, they would say "because it hurts."

To what extent can an HR manager ensure that policy / policies regarding developing people for performance in an organisation are put into practice

Introduction As it is a relatively new focus for modern organizations, human resources is increasingly viewed as paramount to a company’s success, as Cascio (1991) cited â€Å"people are our most valuable asset.† Long gone is the ideology of a company being represented by its assets and wealth, rather it is the personnel side of business which faces significant challenges, as Ulrich (1998) cited numerous ways in which human resources is invaluable to today’s business notably the use of organizational knowledge and adaptability to the ever changing business environment. Due to this focus on people in organizations human resource managers now arguably have more value than the majority of individuals operating in different functions (Lengnick-Hall and Lengnick-Hall 1988.) The majority of business academics support the newly formed metaphor of a business being an organism as opposed to the out dated view of a business as a machine or process, which was shown by O’Neill (2 007) to be evidently reductionist in the way it views organisational procedures. O’Neill highlighted that whilst the biological metaphor was clearly more complex, its acknowledgement of sub systems and informal mechanisms makes it much more suitable for the modern workplace, where human resource’s importance largely outweighs the more operational aspects of a business. HR and Competitive Advantage The role of human resources and human resource managers is now so vital to companies that many academics view the area as a source of major competitive advantage to a firm (Ferris et al 1999, Wright et al 2006.) This view sees that human resources as a function is best to be integrated into all of the businesses primary functions (Arthur 1994) and Miles and Charles (1984) even went so far as to include human resources as part of an organizations strategic decisional processes. However whilst many support this increased focus on the personnel side of a business, for instance Teece et al (1997) believed the transfer of knowledge and skills in developing the workforce is the only real dynamic capability a modern company can hold, Dunford et al (2001) highlighted that the human resource function has struggled to justify its position in organizations (see Drucker 1954, Stewart 1996.) Whilst the importance of people in organizations has little opposition, many view human resource professio nals to have limited importance on the workforce and implementing various policies. Whilst Barney and Wright (1996) examined and supported the importance of a human resource partner in running businesses, it could be argued that whilst making the relevant human resource decisions is necessary, using middle / junior human resource managers to promote these policies is more difficult. Gunnigle (1977) for instance noted that whilst senior management possesses a lot of authority in making personnel decisions, a range of different approaches is suitable for implementing policies, from a â€Å"high strategic integration of human resource issues in strategic planning to more piecemeal ad hoc approaches to managing human resources.† Human resources development As human resources has become so central to organizations, policies regarding developing a company’s personnel have emerged as the focal point for many academics. Defined by Swanson and Holton (2009) as â€Å"a process of developing and unleashing expertise for the purpose of improving individual, team, work processes and organizational system performance,† human resource development is seen by Nadler (1970) to contain three key components, these being training, education and development for the workforce. Developing policies to improve a workforces skills and successfully implementing them assumes a pivotal role in shaping a business’s strategy (Torraco and Swanson 1995.) In fact what Agrawal (1994, cited by Torraco and Swanson 1995) discovered is that whilst the majority of organizations have sufficient technology and policies regarding personnel development, in reality many employees are not actually trained sufficiently to use new equipment. This therefore im plies that managers need to take a more proactive approach in ensuring development policies are put into practice. However due to the vagueness of the development concept, Swanson and Holton (2009) simply look at it in terms of being a problem defining and solving process. The question then becomes what influence a human resources manager has in a modern workplace scenario to implement policies. Whilst Guest et al (2003) found a greater use of human resource management is associated with lower labour turnover and increased employee satisfaction, the actual power a human resources manager has over making changes to workforce policies is limited as seen by Miles (1965) due to the ideological gap between the workforce and managers. Miles used the example of the gap between how managers prefer a different personnel approach to their subordinates than to their superiors. This discrepancy showed that whilst managers welcome a focus on their abilities and development when regarding more se nior managers, they would rather adopt a human relations approach to the workforce, whereby the focus is on morale. Therefore managers in this position could be reluctant to use any formal power they may have to implement new policies. Kanter’s (1989) findings also point towards this conclusion, as Kanter discovered a number of changes in the employee – manager relationship, notably the reduction of power and distance between a manager and their subordinates. Whilst Kanter’s idea that managers now have to implement ideas through more interpersonal and informal means is appealing to a workforce, the concept of â€Å"managers are integrators and facilitators, not watchdogs,† could prove to be problematic when it comes to implementing strict policies on the workforce. Employee factors In order to fully analyse how a human resources manager can successfully implement workplace policies regarding development, various employee factors come into consideration. Firstly there is the importance of the style of communication used. As mentioned previously the distance between managers and workers particularly in large organizations necessitates the effective use of communication channels. According to Soliman and Spooner (2000) using a two way free flowing communication system is the most appropriate method of dealing with development, because it would allow not only for managers to communicate policies to the workforce, it would also allow two way feedback on the said procedures. This idea of a loop of communication regarding development is supported by Bradley (2002) who argued that a â€Å"coherent evaluation and feedback system† should be integrated into every new workplace policy. This is especially vital for development due to the highly personal nature of the issue. Only through effective feedback will human resource managers have the required knowledge about the workforce to ensure that suitable development policies are implemented. A relevant suggestion on how this ideology could be used in a modern business scenario was proposed by Mehra and Brass (2001) in suggesting the use of social networks to communicate feedback to managers. Another clear factor in a human resource manager’s ability to promote development policies is the emotional intelligence of the staff. Sy et al (2006) showed that high levels of emotional intelligence clearly correlate with workplace performance and satisfaction. This suggests that a manager with a highly emotionally intelligent workforce would have an easier time ensuring policies are put in place. Cherniss (2001) even went so far as to cite â€Å"self management† as a key component of the framework of emotional intelligence, implying perhaps that if a workforce was mature and skilled enough the job of the human resource manager would be completed by the staff. However whilst this may seem appealing to managers there is also a problematic issue with emotionally intelligent workforces. The majority of modern workforces possess clear elements of emotional intelligence and often utilise informal learning in their position (Eraut 2004.) Garrick (1998) noted the danger of this informal learning style, that it is not controlled in any way by the management team. With the increased trend for workplace environments to be based around intelligent project / task teams (Hechanova-Alampay and Beehr 2001) human resource managers could often find themselves facing insurmountable odds if they wished to implement unpopular policies. Therefore in order for managers to be able to put policies in place they must ensure in addition to there being effective communication channels in place that a degree of employee commitment is drawn from the workforce. Studies by Romzek (1990) proved the use of employees holding a psychological tie to their place of work, and highlighted the managerial influence on this subject. The way in which managers can ensure employees hold this commitment is displayed by Vischer’s (2006) ranges of environmental comfort. As long as employees show a certain level of comfort human resource managers should be able to implement new development policies. Managerial Factors There has been a large amount of research completed on the new role that managers now face in organizations, namely the human resource function where research seeks to provide guidance on how to deal with specific workforces (Geroy et al 2000.) This is largely due to the new styled work of managers as they face a changing psychological contract with their workforce and so need to build commitment in their implementing of policies (Hiltrop 1999.) This therefore means that managers need to adapt traditional managerial styles if they wish to have the power to put in place new development policies. Vischer (2005) used the example of the new style of managerial offices, where employees can view the managers working to symbolise the increased need for an interpersonal approach to managerial work. Whilst managers traditionally took a scientific based approach to implementing new policies, for instance the labour process conceptualization cited by Ramsay et al (2000) the modern way of reachi ng a workforce is via a transactional leadership approach. Not only does this feedback, group based style work in terms of productivity results alone (Deluga 1988) it gives managers more authority to properly put policies into practice. Bass’ 1985 study justifies this success of transactional leadership by noting an increased employee confidence. Bass noted that a contactable manager with charisma fulfils the traditional leader role that many workforces look for when deciding whether or not to adopt a new policy. However there are other factors a manager must consider when attempting to promote new development policies, primarily there is the direct influence the manager has on the individual. This is especially vital for development policies as they are regarding individual people and so workers would resist policy changes from a manager whom they feel has no connection or influence on the person that they are. Important factors in this topic range from the face to face nece ssity for successful managers, as Dambrin (2004) demonstrated how the reduction of this direct communication in home based telephone workers significantly reduces the need for managers altogether, to the findings by Cleveland et al (2003) which noted the increased influence that managers of similar ages to their staff enjoy. Whilst this element is of little use to many managers (as they cannot help their relative age to the workforce) the concept that employees are willing to accept policy changes from people whom they consider to be similar to them is extremely useful. Therefore the practical use of these findings is in the manager’s tactics in dealing with their staff. There is much research that centres on this factor (Furst and Cable 2008, Wayne et al 2006) and recent findings suggest that managers adopt a highly individualistic based style when implementing development policies, as managerial influence is not equally perceived by workers (Barton and Deschamps 1988.) Lawl er et al (2007) highlighted that older, more highly educated employees feel they should have more say in their own development. Therefore the avocation must be for managers to manage their workforce reactively, not according to a pre-set plan of action (Niederkofler 2002.) Conclusion This report has investigated the extent to which a human resources manager can realistically implement policies regarding development in their workplace. Firstly the importance of human resources as an organizational function was explored, from Cascio’s generic quote to how human resource is now seen as essential in many modern businesses (Teece et al 1997, Barney and Wright 1996.) As personnel development is undoubtedly a vital issue in modern organizations (Torraco and Swanson 1995, Nadler 1970) the issue became how a manager can overcome the ideological gap between themselves and the workforce (Miles 1965.) The aspects that allow managers to do this and successfully implement development policies were tackled in firstly terms of employee expectations for managers, where Mehra and Brass’ communication recommendations and Eraut’s views on emotional intelligence were a focal point, and secondly the managerial influences on their staff such as the use of transform ational leadership and the individualistic style proposed by Barton and Deschamps (1988.) In this way managerial work is very much a self fulfilling prophecy where their expectations for the workforce will likely become reality (Swanson 1995,) and in this context managers should use this information about how to approach issues to their advantage, due to the power value of information as seen by Goad (2002.) References Arthur, J.B. (1994) Effects of Human Resource Systems on Manufacturing Performance and Turnover. The Academy of Management Journal, Vol 37, No 3 (June 1994) pp 670-687. Barney, J. B. & Wright, P. M. (1997). 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Managing Non-Traditional Inventories Essay

Within the service industry, companies will typically have two types of inventory, traditional inventory and non-traditional inventory. For a restaurateur it is essential that they have certain management systems in place, which assist with the management of both types of inventory. These inventory management systems for traditional and non-traditional inventories are critical for a restaurant to be successful and profitable. When dealing with a restaurants traditional inventory, managers are focused on the challenges of dealing with a highly perishable product, food. Since the raw materials for restaurants have a limited shelf life and usually expire within the first week, restaurant managers must have active control systems that assist with food costs, the largest expense for all restaurants. If restaurants are able to successfully manage their traditional inventory, they are most likely a profitable business; however, restaurants could still be passing up opportunities if they do not manage their non-traditional inventories. The non-traditional inventories for restaurants are the â€Å"products available for sale†, which are the space for customers to sit at tables. Restaurant owners should consider each table space as their main product, because without the table space full-service restaurants will not exist. In order for a restaurant to be not only profitable, but also successful, managers should monitor their tables as if their customers were temporarily renting the space for a meal. For them to manage the tables, they should scrutinize the turnover rate of tables. This refers to the number of times a table is used to serve new customers, therefore, the higher the turnover rate of the tables, the greater the cash flow for the restaurant. This is the reason the fast food industry is a multi-billion dollar industry, as they have an exceptionally high table turnover rate compared to a fine-dining restaurant. For any full-service restaurant, restaurant owners should not pressure their customers to eat faster in order to improve their table turnover rate. Instead, restaurateurs have to properly manage their staff and the service that they provide to achieve a higher turnover rate. Owners should encourage their staff to work together as a team, so that they can improve the efficiency of the restaurant by assisting each other’s customer requests. The most effective practice for improving the cohesiveness between staff members is to encourage the servers to â€Å"pool their tips together and divide it up evenly† (Restaurant Guide). Apart from generating stronger teamwork between staff members, owners must ensure that the kitchen is fully optimized for speed and efficiency. By ensuring both the quality and the speed of the kitchen, restaurants can drastically improve the perceived service as well as the turnover of tables. In addition, staff members should be able to indicate when customers are ready to order, as well as finished with their dishes, since having fewer items on the table is generally a positive aspect of a good restaurant. Lastly, owners in the start-up phase of running a restaurant should avoid purchasing large tables, as small tables can help save space as well as seating capacity. If large parties were to request for a larger table, the restaurant will still be able to accommodate the varying sizes by combining small tables together. Therefore, if restaurant owners are able to manage their food costs, as well the table’s turnover rate and has the correct combination of sizes of tables; they can decrease the wait time for customers, maximize seating capacity, and increase profits (Petersen). Works Cited â€Å"How Better Inventory Management & Weekly Food Costing Can Lower Your Food Cost.† How Better Inventory Management & Weekly Food Costing Can Lower Your Food Cost. Restaurant Owner. Web. 27 May 2012. . â€Å"Managing Table Turns.† – Restaurant Customer Service. Starting a Restaurant Guide. Web. 27 May 2012. . Petersen, Kurt. â€Å"Tables: What Size Do You Need?† Tables: What Size Do You Need? Petersen Furniture, Inc. Web. 27 May 2012. .