Economics of Organisations TAKE HOME EXAM (For Second Writer) Essay

Economics of Organisations TAKE HOME EXAM (For Second Writer) - Essay Example When there is a team effort like this, you have information problems: it is hard to tell who is shirking. "The essence of the classical firm is identified here as a contractual structure with: 1) joint input production [team efforts]; 2) several input owners [e.g. each laborer owns himself]; 3) one party who is common to all the contracts of the joint inputs [the employer/owner]; 4) who has rights to renegotiate any input's contract independently of contracts with other input owners [e.g. can hire, fire, etc. to reward inputs that contribute more]; 5) who holds the residual claim [i.e. gets the "residual" income; see below]; and 6) who has the right to sell his central contractual residual status [i.e. can sell the company]." In earlier literature regarding the theory of the firm, many argued with Alchian and Demsetz. According to Organizations and Markets.com (2009 p. 1), "The striking insight of Alchian and Dernsetz (1972) and Jensen and Meckling (1976) is in viewing the firm as a set of contracts among factors of production. In effect, the firm is viewed as a team whose members act from self-interest but realize that their destinies depend to some extent on the survival of the team in its competition with other teams." Fama criticizes Alchian and Demsetz, however, for failing to eliminate the entrepreneur from the picture; their theory still includes an employer who, like an entrepreneur, polices shirking because he collects the benefits of doing so." Alchian and Demsetz had their own unique view of the firm. It is presented in the following diagram: Figure 2: Organizational Chart Source: Emerald Insight (2009 p. 1) Their arguments have their good points and their bad points. I do believe authority plays a large role in the success of organization and that too much authority and/or too little authority can certainly bring a firm down, but I also believe that information is way more than valuable to the rise of a firm, and therefore the cost of it is duly justified. I am just not sure at this point which is more important. Perhaps they are of equal importance. One could argue that every little function within an organization could make or break that organization. These are just two points of view that we are presented with. Perhaps a broader spectrum of ideas would help to justify one side or the other of the argument. The ideas would come from multiple departments within the organization instead of a few elite professionals. The broader the spectrum is from which to choose, the better conclusion one can make. References Alchian, AA. Principles of Professional Advancement 1996. Economic Inquiry, Vol. 34. Alchian, AA, JM Buchanan; H Demsetz, A Leijonhufyud, et.al. 1996. Economic Inquiry. Vol. 34. Alchian and Demsetz: Production, Information Costs, and Economic Organization 2009. Wikisum. Available at

The CSR Benchmarks and Models of the Cooperative Bank Essay

The CSR Benchmarks and Models of the Cooperative Bank - Essay Example The broadest aim of the social responsibility is to create higher and even higher standards of living, while maintaining the corporations’ profitability, for people in and outside the corporation (Line 2012, p.10). CSR becomes classified in a number of ways; Environmental protection The main focus of CSR is to find a sustainable solution for the natural resources use, to help reduce the company’s impact on its environment. Over the couple number of years, environmental responsibility has grown to include more than the compliance with all appropriate government regulations, or participating in energy efficiency. A number of companies and environmental organizations define environmental responsibility as including, comprehensive move to a firm’s operations, goods and facilities that also include; assessing the products of the company, processes and the services; removing waster and other emissions; utilizing the efficiency and the subsequent productivity of the ent ire assets and resources (Frankental 2001, p.21). Labor security These contain freedoms of association and the subsequent recognition of the right to the collective bargaining, the removal of all types of forced labor. It also entails the abolition of child labor and removal of discrimination in line with employment and occupation (McWilliams & Siegel 2001, p.18). Human rights Business practices can affect significantly the dignity and rights of the workers and the community. The focus is, to develop a job environment free from discrimination and a place where the creativity and learning can improve the appropriate codes of professional conduct, and where a correct balance can be maintained between jobs and other areas of the employees’ lives. Behaving in an irresponsible way on human rights issues can detrimental because the reputation of the firm is on the line. The issue is also related to the issue of globalization and ever increasing global trade, and the problems of fin ding methods of doing business globally that respect the human rights and facilitate the growth of emerging economies. Nations become required to upheld, support and protect human rights to their levels of influence. Paying the employees a living wage and giving them protection from harassment may cost more in the short run, but it vastly increases the workers morale and reduces turnover increasing profits in the future. Therefore, socially responsible management practices can increase the firms’ level of profits (Carroll 2000, p.16). Community involvement It involves community partnership, global community involvement, employee giving, service donations and volunteerism. Corporate, community involvement is a number of actions undertaken by the firms to improve the impact of their activities, in the communities that they operate. When correctly executed, these activities not only bring immense importance to the recipients’, but will also improve the reputation of the o rganizations and their brands, goods and values in the communities where they have interests in, as well as globally (Greenfield 2004, p.20). Business Standards They cover a number of corporate events like; ethics, environmental protection, financial returns and human rights. The growth of international trade and communication has led an increasing pressure from a number of groups, for the formation of world business conduct standards (McWilliams & Siegel 2001, p.18). Early models of CSR have developed since 1960s,

Terrorism Essay Example | Topics and Well Written Essays - 1000 words - 8

Terrorism - Essay Example In an attempt to understand terrorism and integrate the protection against terrorism in the laws, different governments and agencies have come up with the definition of terrorism to help in designing intervention against the vise. This paper will analyze some of the definitions of terrorism and provide a critique to the definitions in an attempt to ensure the definitions are in conformity with the current socio-economic changes and the dynamics in technological advancements. Even before the 9/11 attack, there had been debates concerning extremism, however, following the 9/11 attack, the aftermath propelled the definition of terrorism into the forefront of the contemporary consciousness. Nevertheless, despite the public spotlight on the actions of terrorists, there has not been a concrete and a universally accepted definition of terrorism, thus the definition of terrorism varies from one state to another and between different law enforcement agencies. In the current world, national security is of paramount importance; hence, the political and the legal systems need to have a universal way of definition of terrorism to help in designing effective counter-terrorism strategies. Due to lack of a universally accepted way of defining terrorism, the international community cannot strengthen their cooperation in the fight against the vise since different definitions results to different priorities in the fight against terrorism (Sandler, 2011). Terrorism can be viewed from three parameters; the cause, the means of attack and the perpetrators. Focusing on a single parameter is not adequate to the definition of terrorism since terrorism is multidimensional, fluid and complex. The diversity in the three parameters used in the definition of terrorism makes it difficult to formulate a universally accepted definition. Some of the reasons why the application of the three parameters has

Management Interview Research Paper Example | Topics and Well Written Essays - 1000 words

Management Interview - Research Paper Example Lloyd responded that management, according to him, is about administering the day to day functioning of the firm. This might include developing newer business plans, preparing budgets, and observing day to day functions. One the other hand, he believes that leadership means to guide in a particular direction. In other words, according to him, leadership is the relationship that the leader develops with the followers in order to energize them to take up the required changes. In order to make his statements more digestible, Mr. Lloyd offered an explanation. According to him, if his subordinates follow his orders because they have to do so according to the company rules, he is just a manger. On the other hand, if his subordinates are eager to hear to him and to follow him, or if he can bring in a change in his organization without the support of an order from the above, he is a leader. Similarly, Mr. Mark was of the opinion that subordinates follow leaders out of emotions. He says a lea der invokes various emotions in employees ranging from hope, fear, respect, and happiness and so on. According to him, while managers rule out of regulations, leaders rule out of aesthetic sense developed in subordinates. He pointed out the difference between his managerial and leadership roles. As a manger, there is planning, budgeting, evaluating, and facilitating functions. At the same time, as a leader, he identifies talents in various employees, utilize various ways of motivation including rewards, reason, and relationships, resorts to coaching to ensure that the employees remain motivated and convinced, and finally build trust so that implementation of various strategies are met with less criticism and doubt. When Mr. Mark was asked as to what are certain similarities between both, he was able to identify certain important similarities between them. The first one is that both management and leadership aim to achieve certain goals. According to him, the second similarity can be found in the fact that both management and leadership require subordinates to achieve the goals by motivating employees. The last point he could identify was that both leadership and management are ways to link the top management and subordinates. Then the question turned towards the management and leadership style Mr. Lloyd has adopted in his organization. It was surprising to note here that he believed in a combination of autocratic and paternalistic leadership styles. He pointed out the fact that though democratic approach can be much better in an organization where the manager would be able to discuss and decide the future course of action, in such a multinational organization which is highly centralized in nature where all the decisions come from the above, he does not have much room for practicing democratic way of leadership. In such cases, manager only acts as a supervisor to see that the changes are implemented, and there is no provision to discuss with the employees and t o get their opinions on the implementation. When I asked the question if he could not adopt bureaucratic approach instead, his reply was that this could make his position vulnerable as there is the chance of the staff challenging his authority. My next question was regarding certain organization development interventions Mr. Mark uses as a part of his OD role. The response was that he has incorporated survey feedback, sensitivity training, team building, and management objectives as ways of

Response to Client Request Essay Example | Topics and Well Written Essays - 1000 words

Response to Client Request - Essay Example Since, in this case the client holds the position of the lessor and the customer that has reached the client would fill the place of the lessee in this agreement. Therefore, from the client’s perspective, the leases from the standpoint for lessor hold significant value. Sales-type leases are the leases that give rise to a profit or loss to the lessor with the lease agreement as it would have done had the leased property been sold. This is because the leased property is given to the lessee at the fair value of the property which may be higher or less than the actual cost of the property. Direct financing leases are a very important type of leases as they are widely used in the lease agreements. There are certain criteria that must be met in order for a lease agreement to quality for direct financing lease. ... following criteria; the lease agreement includes three parties that are lessor, a long term creditor and a lessee, the financing provided by the long term creditor is nonrecourse as to the general credit of the lessor, the lessor’s net investment in the lease declines during the early years and rises in the later years. Any other types of leases, other than those described above, are classified as operating leases. In case of this client, the following points should also be taken into consideration. In case of direct financing lease or sales-type lease, it is also important for the lessor to ensure that the collectability of the minimum lease payments is reasonably predictable. A lessor shall not classify a lease as a direct financing lease or a sales-type lease merely on the basis of an estimate regarding the collectability of the minimum lease payments based on the prior experience with the lessee or prior experience with similar groups of receivables. The lessor should also make sure that no important uncertainties surround the amount of reimbursements to be made by the lessor to the lessee in relation to the performance of the leased property. The uncertainties might arise due to extensive guarantee provided by the lessor regarding the performance of the leased property. In this case, lessee might retrieve the amount of loss, if any, incurred by the lessee due to the lack of performance of the leased property as opposed to what was promised by the lessor. These factors shall apply in the case of the client as the client must ensure that the customer that has reached the client would be able to pay the minimum lease payments without any default in the payments. This can be ensured by conducting a market survey regarding the integrity of the customer. If the

Roman Republic Essay Example | Topics and Well Written Essays - 1000 words

Roman Republic - Essay Example The reasons for the decline of Rome are as intriguing as the factors contributing to its rise. In order to understand the causes of the collapse of the Roman Empire, it is essential to understand the confluence of circumstances and variables that contributed to its rise, for these are the same factors that were brought to such an excess that the Empire collapsed under its own weight. Ultimately, Rome's successful development of military might, political dominance and infrastructural innovation led to such an expansion of the Empire that it could not sustain its own mass. This development was driven largely by the egos of Rome's leaders, who believed Roman civilization was so superior that it was a gift to the world to have it spread as much as possible. Military might was arguably the first key factor that enabled the Romans to build their empire. This was achieved through "cultivation of virtues conducive to military strength: unswerving loyalty, obedience, frugality and disregard for peril to life and limb" (Bonta, par. 6). These virtues were evident from the very beginning of the evolution of Rome. Roman history, from its inception, is replete with monumental wars and battles, most of which resulted in Rome's victory and dominance, thereby paving the way for geographic expansion and assimilation of weaker neighbors. Bonta maintains that "for the most part, Roman military history is a dreary catalog of one-sided battles with outmatched and poorly organized foes, of the destruction or absorption of entire nations into the expanding Roman state, and of almost superhuman resilience in rebounding from rare defeats that would have broken the back of any other people" (par. 8). Clearly the expansion of the Roman Empire would not have been possible had Rome not been militarily dominant. And yet, over-zealous military adventures eventually resulted in the destruction of Rome. Political Structures Rome's political structures were cutting edge and in many ways ahead of their time. They vested real power in the hands of the people in a way that had rarely if ever been seen before; and did so in a way that struck a nearly perfect balance between stability and liberty (Bonta, par. 10). Rome "discovered a formula for limiting the power of government by dividing it among several different magistrates and elected bodies" and also "developed a code of written laws that defined and protected the rights of Roman citizens" (par. 10). These developments regarding separation of powers and personal liberty planted the seeds of political thought that served as the foundation of modern Western-style democracies. Roman citizens were genuinely empowered. They enjoyed an unprecedented degree of liberty that was protected by law, and had a hand in electing their government representatives. The satisfaction of common citizens with their representation in the government was a very important factor that led to the stability of the state. The masses, as a whole, felt politically content and this was a critical factor enabling the empire to evolve. Essentially, by giving people a stake in their political system, Rome ensured that it would not have to be distracted by the need to quell internal discontent, and could instead focus on external expansion. The problem for Rome was that these same political privileges were not afforded to many of those

Action Plan for Homeland Security Essay Example | Topics and Well Written Essays - 500 words

Action Plan for Homeland Security - Essay Example For a leader who is determined and courageous, his/her prevention strategies on attacks and disasters entail the strengthening of information sharing and collaboration capabilities. This will entail a robust investigative capacity to address all terror-linked issues and enhancing public awareness on reporting terror-related matters. There is need to establish the permanent commission that comprises of fire chiefs, police chiefs, mayors, local public health officials, and local emergency managers by the Department of Homeland Security to restructure the local-federal partnership with an aim of strengthening domestic security and safety. Create a safe and resilient cyber setting and promoting cyber-security innovation and knowledge (Shoemaker, & Conklin, 2011). There is a probability that a weapon of mass destruction will be utilized in a terrorist attack anywhere in the world by the end of 2016 (Graham, 2013). To ensure the safety of American people, the water systems will be protected from natural disasters and terrorist attacks through web-based monitoring of the distribution system water quality and regular water quality sampling combined with the analysis in the distribution system. Reducing vulnerability to terrorist attacks as well as other related disasters by strengthening capabilities that offer protection to public transport systems, ports, high-traffic borders, and other high priority critical infrastructure. The efforts to prevent terrorism will be centered on a layered risk-based approach to the security of the cargo and passenger systems of transportation, borders, and ports of entry. In the event of an electromagnetic pulse, money needs to be provided to the Department of Homeland Security by the federal government in order to offer protection to the electrical grid system. Office of Homeland Security to be given budgetary control over all federal programs associated with the nation’s domestic protection. Besides that, for those leaders who  are visionary and forward-looking, the Office of Homeland Security needs to be structured in a way that it works directly with mayors in support of their leadership responsibilities.