Expansionary Economic Policy Research Paper Example | Topics and Well Written Essays - 1250 words

Expansionary Economic Policy - Research Paper Example They also contrast with the opinions held by many economists that exist within the boundaries of convectional models. Mainstream economics relies on basic theories regarding policies aimed at expanding the economy despite the downturn. There is a unanimous agreement that the continuation of the spending and tax policies may result in an unsustainable path reflecting national debt. This is mostly due to the growth of mandates that emanate from the aging population and the high costs of health care provision. Therefore, this paper examines the evidence and logic bearing on the worth of the fiscal policy in economies severely depressed. During normal economic times, the central banks offset and disregard the effects of the fiscal policy. In turn, this keeps the policy-relevant multiplier at a constant near zero. This leaves no room for expansionary fiscal policies as a tool for the stabilization policy. But, when constraining the interest rates by the zero nominal lower bound, the discr etionary fiscal policy comes into action as a vital stabilization policy technique (Jane & Thomas, 2013). Fiscal policy is the application of taxation and government spending to influence the economy. Fiscal and monetary policies are the two major and commonly used tools available to the policy makers so as to alter output, employment and demand. When the supply of money in an economy is constant, the government expenditures have to receive financing through government spending and borrowing or imposing higher taxes. In this regard, the fiscal policy involves the government’s utilization of spending, taxing as well as borrowing policies. The government’s budget deficit comes forth in the evaluation of the direction that the policy takes. The core economic impact of any changes in the budget affects particular groups of people for instance a tax cut for homes and families that have children raises their disposable income. Therefore, the fiscal policy discussions primari ly focus on the effects of changes experienced in the financial plan on the overall financial system. This fiscal policy takes into proper use tools such as taxation, borrowing funds from populations that live abroad, consuming fiscal reserves, selling fixed assets such as land, and seigniorage that defines the benefits accrued from printing money. The Federal Reserve System acts in accordance with satisfying its public role as an independent body within the arms of the government. It is not a private and neither is a profit making institution. The Federal Reserve acts as the central bank and takes authority from the Congress in the United States to conduct business. This part of the government holds a lot of responsibilities and this means that it is an indispensable factor in the implementation of the fiscal policy. The Federal Reserve felt that it need by a large percentage to control government spending by paying close attention to locally produced goods and services. It was cos ting the government a fortune to depend solely on imported goods that come out of foreign countries and this lowered the amount of money that circulates within the U.S. This measure also meant that the government would think about trading with the foreign investors with the capacity to bring in international funds to the local companies where the local dollar becomes stronger. Controlling government expend

Sexual studies biology assignment 1 Essay Example | Topics and Well Written Essays - 1250 words

Sexual studies biology assignment 1 - Essay Example Hormonal changes The menstrual cycle is determined by the functioning of four organs namely; the hypothalamus, the anterior pituitary gland, the uterus and the ovaries. It consists of phases identified as the follicular, ovarian and luteal. The beginning of the cycle is marked by a decrease in estrogen and progesterone levels. These are primary female hormones. This decrease stimulates the hypothalamus to produce Follicle Stimulating Hormone Release Factor (FSHRF). The FSHRF triggers the anterior pituitary gland to produce Follicle Stimulating Hormone (FSH). FSH is responsible for the release of estrogen in the ovaries which leads to the formation of the Graafian follicles in the cortex of the ovaries. These follicles are cells which cannot be fertilized. Increasing levels of estrogen cause the growth of uterine wall in preparation for possible implantation of the fetus after fertilization. This marks the follicular phase (Ferin, Jewelewicz, and Warren 5). The ovarian phase begins wi th the production of Luteinizing Hormone Releasing Factor (LHRF). This is initiated by the hypothalamus in response to low progesterone levels. LHRF then activates the production of Luteinizing hormone in the anterior pituitary gland. This hormone causes the production of progesterone from the ovaries. ... The luteal phase is characterized by the change of color to yellow of Graafian follicles to form the corpus luteam. The hormone progesterone also called the hormone of pregnancy is identified as responsible for this. The hormone further leads to the thickening of the uterus lining and increased blood supply in readiness for possible fertilization. If fertilization does not occur, progesterone levels start to drop. This decrease and eventual decline causes the shedding of the uterine wall, tearing of blood vessels and ejection of the contents through the vaginal tract. This is menstruation and marks the end of the cycle. The low levels of progesterone and estrogen effectively stimulate the hypothalamus to begin the next cycle (Ferin, Jewelewicz, and Warren 10). Fertile period of the cycle The period of the menstrual cycle when fertilization is most likely is identified as mid way through the cycle. A female whose cycle takes twenty eight days for example would be fertile on the fourte enth day. This is when ovulation takes place. The fertile egg (ovum) has a lifespan of twenty four hours and the fertile period lasts as much. The male sperm however has a longer lifespan of three to five days once released into the female. This means sperms released three to five days before ovulation can fertilize the egg. The twenty four hours immediately after ovulation however remains the most fertile period (Edin, Golanty, and Brown 170). Physical and emotional changes during cycle The hormonal variations during the cycle are identified as the cause of physical and emotional changes over the period. Studies show that contraction of the uterus (cramps) is inevitable. Lower back pain, fatigue and pelvic

Was the American entry into WWI justifiable Why or why not And, was Essay

Was the American entry into WWI justifiable Why or why not And, was the american intervention in Vietnam justifiable why or w - Essay Example At that time, maintaining neutrality was very difficult to maintain for USA. The main rationale was the threat of German invasion over the US. They were approaching Mexico to invade the entire country. For the sake of national defense, President Wilson declared war against German empire on April 2, 1917. The submarine or U-Boat attacks on American trading activity were also not ignorable. If we want to outline the major heads as the underlying reasons, following points will justify the intervention in war: U-Boats or submarine attacks Breakdown of Sussex Pledge Lusitania was sinking Telegram from Zimmerman The actual threat that came from Zimmerman was down point where no more patience could be exercised. By observing the clear threat in the telegram, American President finally decided to declare the war which was already going on in Europe. Some critiques also state that America just took the sympathies from the stakes by cunningly entering in to the war. On the other hand, they jus t made the reasons justified by their own however the situation was still controllable without putting in to the war. 2. Vietnam War The so called reason given by America is prevention of communism spread. The war ended up with failure at high cost of human and monetary damages. It swallowed the lives of 58,000 American soldiers. A large number of militants were permanently disabled because of high stress and continuous warfare activities for long. Historically, it has been notified as a terrible mistake made by American administration. The war involved a huge quantity of chemical spread was over run in Vietnam. For example, nearly 10 percent of the country was intensively sprayed by seventy two million liters of the dangerous chemicals including Agent Orange. That excessive chemical invasion not only affected local citizens but also impugned the lives of American troops in Vietnam. The dioxin that contained Agent Orange influenced the irrigation and water supply system negatively. Along with this, it caused long term effects over the new child births. The new children were getting birth with numerous disabilities like limbless children. The adverse effects of the war still persist in several areas of Vietnam. For instance, it has been reported in 2003 that 650,000 people in the country are still facing post war problems in numerous ways. The main reason was chemicals which were dropped in an unlimited number. The underlying war also caused ill reputation at the end of USA amongst the contemporaries for such a inhumane and terrible warfare. Comparison Vietnam War is often referred to as a misguided warfare while the WW-I had a clear agenda of defense and security. US had to face an open defeat will huge losses with reference to Vietnam War whereas in World War I, US complied with the decided and declared agenda. People favor for the WW1 but it is opposite in case of Vietnam War. The purpose of Vietnam War was economic but the WW1 had a purpose of defense. The administration used only needed and contemporary weapons in the WW1 that did not leave adverse after effects but Vietnam War caused long term excessively horrible effects over the country, people’s health and the overall environment. American economy and budgetary system had to face a huge loss in term of man power (militants) as well as in monetary term. People in US were quite distressed because of

Impacts of Motivation in Employee Performance Essay Example for Free

Impacts of Motivation in Employee Performance Essay 1. INTRODUCTION 1.1 Back Ground of the Study The study was attempted to investigate analytically the major causes of employees’ motivation in Commercial Bank of Ethiopia. To accomplish this, the research was considered to take appropriate data that relevant to the problem. Since, Commercial Bank of Ethiopia is the major sector that supports the current development of Ethiopia economy and the five years of transformation plan, so it should be better to take study to identify the major causes that affects of employees’ motivation toward their work and to propose necessary tools of solution to mitigate the problem. This will be at least a solution currently and in the future for the organization. The major initiatives to conduct this study are also one of the researchers is working in Commercial Bank of Ethiopia that observe most of employees are not satisfied or motivated to work. This forced the rest researchers to examine the basic problems of human resource management unable to conduct how frequently motivate employees’ in the existing work place using financial and non financial tools. If this problems not solved, it may affects the image of the organization, belongingness workers etc†¦gradually. Considering this, it should be necessary to conduct study to identify the major causes of employees’ dissatisfaction in their work place that affects motivation, and the drawback of motivation packages relative to the image of the organization and its strategic plan which is to be â€Å"Classic Bank In The World†. To do an extensive study, the researcher performed methodological ways of gathering data pursuant to the problems and objective of the study paper. The employees are one of the vital resources or ingredient that will help organization to achieve its objectives. Employees supply their talents, knowledge, skill and experience towards to the achievement of organizational objectives. To get maximum performance from employees, the organization must have the necessary motivational scheme that encourages employees for better performance. Optimizing performance of employees by motivational factors is challenging and sensitive due to uniqueness of working force which came to organization from different socio-economical background. Performances of motivated employees create high productivity, innovativeness and good attitudes towards the organizations. There is a relationship between motivational factors and some facts of the employees behavior such as performance, turnover, absenteeism, poor attendance, willingness to do more, creativity, flexibility, and commitment to the organization. So motivation has important implications because it affects the individual quality of work, life, and performance. Therefore, managers are expected to have necessary skill on how to motivate employees. Commercial Bank of Ethiopia as a service rendering organization thereby maximizing its profit, its quality of service is highly determined by devotion of its employees. Therefore, the bank has to give importance to the recruitment of educated employees, to staff training and the improvement of workers’ benefit packages. Besides, it has to revise its benefit package with a view to motivating its staff towards greater efficiency and competence. In general, the study was focused on to investigate the real causes of employees’ dissatisfaction at their work place in the Bank and its impacts toward the image, rest of employees’ belongingness. 1.2 Back Ground of the Organization Currently, the Commercial Bank Ethiopia (CBE) has 15 district offices and above 300 branches throughout the country serving as market outlets. As the largest bank and development partner of the Ethiopian Government, the CBE has transferred Birr 1.23 Billion in 2008 1 to the coffers/treasure of the state. In 2005/2006, the market share of the Bank was 24% and 76% for credit extension and deposit mobilization, in that order. The Commercial Bank of Ethiopia (CBE) is the leading Bank in the country. It has over 8,600 employees and close to 2 million accounts holders throughout the country, and total asset of Birr 73.7billion, total deposit and other liabilities of Birr 56.1 billion and outstanding loans of Birr 22.9 billion, and close to 70 years of solid accumulated banking experience. The CBE is in the forefront of the banking industry in meeting the financial needs of the various sectors, sub-sectors and ongoing varied investment projects in the economy. It has diversified credit portfolio with loan facilities extended ranging from farmers’ cooperatives to commercial farmers and large manufacturing and construction project. Commercial Bank of Ethiopia currently has given services for customers such as Deposit, Loan service, foreign currency service etc†¦ The CBE has a vision to be world a worldwide class commercial bank by 2025.It has also set a strategy of exceeding customers and stake holder’s expectation through service excellence and business growth supporting the development efforts in the country. Commercial Bank of Ethiopia currently played a great role for the development of the economy to achieve the million goal of the country. (CBE Public Relations Documentation, 2011). 1.3 Statement of the Problem It is obvious that currently Commercial Bank of Ethiopia is a major blood for the current economic growth of Ethiopia. In order to fulfill this, the company mobilized big amount of foreign and domestic currency to facilitate and support high investment process in the economy. To perform effectively this, the firm should have well developed human resource management tools to enhance the work forces motivation toward their work which help to create loyal and belonging employees in the work area. This has a direct relationship with the service quality level to satisfy the existing and prospect customers. Moreover to introduce new and modern type of working system throughout the organization, there should be also a sound strategy of workers motivation program, which helps to increase workers retention in the bank. Organizations that only focus on its goal, without considering the factors of employees motivation toward their works has become a cause of fragility of the business in the long run. In this essence, employees that are not satisfied in their organization could not be initiated to exert more efforts effectively in the organization, instead they will look for other opportunities externally and vote with their feet by moving their allegiance to competitors, and this will affect the firms in the long run. The outcomes of the research will help the organization to take the necessary corrective measurements in the future and to revise its motivation strategy of employees. Because of the above major problems, the existing employees’ lack confidence on the bank. Moreover, the bank faces problem of employees’ turnover due to lack of effective motivation, this also results in high cost of getting experienced employees and recruiting of new one. Therefore; regarding the above problem, the study attempted to respond the following basic research questions. 1.What is the feeling and attitudes of employees towards to motivational factors used in Commercial Bank of Ethiopia? 2.What are the consequences of job dis-satisfaction in Commercial Bank of Ethiopia? 3.What are the consequences of lack of motivated employees’ performance? 4.What is the effect of motivation on employees’ loyalty to the organization? 5.What kind of action should be taken by the bank to increase employees’ motivation toward work areas? 6.What are the basic factors for employees’ motivation in the work area? Is it financial or non financial benefits? 1.4 Objective of the study Due to lack of effective motivation, most employees are dissatisfied to their work place; this creates desperate work forces that perform their work till to get other opportunities of work in order to get the root of the problem the study set the following objectives. General objective The general objective of the study was to identify the causes and impacts of lack of employees’ motivation and to identify the basic causes of dissatisfaction of employees to ward their work, which aggravated lack of employees’ motivation. Specific Objective †¢To indicate which is the basic factors for lack of employees motivation currently in the bank †¢To show the relation between lack of employees’ motivation impacts and employees’ turnover. †¢To assess the potential consequences of lack of employees’ motivation in the Bank. †¢ To set appropriate recommendation for the problem based on the findings. 1.5 Significance of the study The study identified the major causes of employees’ dissatisfaction, which is a major factor that affects motivation of employees at the work area. The outcomes of the research help to increase employees’ satisfaction at their works that support to increase the service level of customers’ satisfaction. Moreover, increase of work force motivation has also a direct relationship to minimize turnover in the bank. The other advantages of increase of motivation of employees at the work area are enables employees to enhance their loyalty for the organization and at the same time employees’ belongingness increase. This also helps for the reputation of the image of the bank. Employees will increase their efficiency to serve their customers with smiling face. Moreover also; the study provided a hint for other researchers as a reference, and the findings of the study will help to give valuable information for top management to establish new system to increase employe es’ motivation. 1.6 Scope of the study The study considered major causes of employees’ lack of motivation in the Bank especially focusing in the area of Addis Ababa core operation. It scopes limited to study employees’ lack of motivation in Addis Ababa area only, by taking as a population and sample of the existing employees. 1.7 Limitation of the Study The major limitation of the study is constraints of time and collecting appropriate data from respondents since there was few samples unwillingness to return the questionnaires properly. 1.8 Research Methodology 1.8.1 Research Design The study applied the following types of research method to investigate the problems. The research is designed by using both Primary Secondary data. 1.8.2 Source of Data Methods of Data Collection The method of data collection carried out by distribution of questioners, which consist of both closed and open-end questioners. The questioners were being the main instrument of primary data collection. The secondary data gathered from different books, literature review, internet and printed materials. 1.8.3Sampling Design Techniques A sampling technique of random sampling adopted by taking the sample from the selected four city branches and two departments of Manager and non-manager line staff employees of commercial bank of Ethiopia. The total population was taken 200. 1.8.4Methods of Data Analysis Descriptive and explanatory methods of data analysis applied. Test hypothesis for possible interdependence and effect relation ships conducted for easy understanding of trends of some patterns of distribution, table, percentage and interpretation of data conducted based on the response and theoretical concepts. 1.9 Organization of the paper The study paper included four chapters. The first chapter is about the introduction part which contains back ground, statement of problems, objective of the study, significance, methodology of research, limitation of the study and organization of the paper. In Chapter II, Theoretical concepts from internet are included. Chapter III included the important part of the study, which is data analysis and interpretation, this lead to the final Chapter IV, which described the summary of findings, conclusions and recommendation of the paper. CHAPTER TWO 2. LITERATURE REVIEW OF MOTIVATION 2.1 Motivation and Motivation Theory The term motivation is derived from the Latin word movere, meaning to move. Motivation can be broadly defined as the forces acting on or within a person that cause the arousal, direction, and persistence of goal-directed, voluntary effort. Motivation theory is thus concerned with the processes that explain why and how human behavior is activated. (http://www.csb.gov.hk/hkgcb/hrm/pdf.fcle/e-motivation). The broad rubric of motivation and motivation theory is one of the most frequently studied and written-about topics in the organizational sciences, and is considered one of the most important areas of study in the field of organizational behavior. Despite the magnitude of the effort that has been devoted to the study of motivation, there is no single theory of motivation that is universally accepted. The lack of a unified theory of motivation reflects both the complexity of the construct and the diverse backgrounds and aims of those who study it. To delineate these crucial points, it is illuminating to consider the development of motivation and motivation theory as the objects of scientific inquiry. (http://www.csb.gov.hk/hkgcb/hrm/pdf.fcle/e-motivation). 2.2 Historical Development Early explanations of motivation focused on instincts. Psychologists writing in the late 19th and early twentieth century have suggested that human beings were basically programmed to behave in certain ways, depending upon the behavioral cues to which they were exposed. Sigmund Freud, for example, argued that the most powerful determinants of individual behavior were those of which the individual was not consciously aware. (http://www.csb.gov.hk/hkgcb/hrm/pdf.fcle/e-motivation). According to Motivation and Leadership at Work (Steers, Porter, and Bigley, 1996), in the early twentieth century researchers began to examine other possible explanations for differences in individual motivation. Some researchers focused on internal drives as an explanation for motivated behavior. Others studied the effect of learning and how individuals base current behavior on the consequences of past behavior. Still others examined the influence of individuals cognitive processes, such as the beliefs they have about future events. Over time, these major theoretical streams of research in motivation were classified into two major schools: the content theories of motivation and the process theories of motivation. (http://www.csb.gov.hk/hkgcb/hrm/pdf.fcle/e-motivation). 2.3 Major Content Theories Content (or need) theories of motivation focus on factors internal to the individual that energize and direct behavior. In general, such theories regard motivation as the product of internal drives that compel an individual to act or move (hence, motivate) toward the satisfaction of individual needs. The content theories of motivation are based in large part on early theories of motivation that traced the paths of action backward to their perceived origin in internal drives. Major content theories of motivation are Maslows hierarchy of needs, Alderfers ERG theory, Herzbergs motivator-hygiene theory, and McClellands learned needs or three-needs theory. (http://www.csb.gov.hk/hkgcb/hrm/pdf.fcle/e-motivation). 2.3.1 Maslows Hierarchy of Needs. Abraham Maslow developed the hierarchy of needs, which suggests that individual needs exist in a hierarchy consisting of physiological needs, security needs, belongingness needs, esteem needs, and self-actualization needs. Physiological needs are the most basic needs for food, water, and other factors necessary for survival. Security needs include needs for safety in ones physical environment, stability, and freedom from emotional distress. Belongingness needs relate to desires for friendship, love, and acceptance within a given community of individuals. Esteem needs are those associated with obtaining the respect of ones self and others. Finally, self-actualization needs are those corresponding to the achievement ones own potential, the exercising and testing of ones creative capacities, and, in general, to becoming the best person one can possibly be. Unsatisfied needs motivate behavior; thus, lower-level needs such as the physiological and security needs must be met before upper-level needs such as belongingness, esteem, and self-actualization can be motivational. (http://www.csb.gov.hk/hkgcb/hrm/pdf.fcle/e-motivation). Applications of the hierarchy of needs to management and the workplace are obvious. According to the implications of the hierarchy, individuals must have their lower level needs met by, for example, safe working conditions, adequate pay to take care of ones self and ones family, and job security before they will be motivated by increased job responsibilities, status, and challenging work assignments. Despite the ease of application of this theory to a work setting, this theory has received little research support and therefore is not very useful in practice. (http://www.csb.gov.hk/hkgcb/hrm/pdf.fcle/e-motivation). 2.3.2 Alderfer’s Erg Theory. The ERG theory is an extension of Maslows hierarchy of needs. Alderfer suggested that needs could be classified into three categories, rather than five. These three types of needs are existence, relatedness, and growth. Existence needs are similar to Maslows physiological and safety need categories. Relatedness needs involve interpersonal relationships and are comparable to aspects of Maslows belongingness and esteem needs. Growth needs are those related to the attainment of ones potential and are associated with Maslows esteem and self-actualization needs. 1.The ERG theory differs from the hierarchy of needs in that it does not suggest that lower-level needs must be completely satisfied before upper-level needs become motivational. ERG theory also suggests that if an individual is continually unable to meet upper-level needs that the person will regress and lower-level needs become the major determinants of their motivation. ERG theorys implications for managers are similar to those for the needs hierarchy: managers should focus on meeting employees existence, relatedness, and growth needs, though without necessarily applying the proviso that, say, job-safety concerns necessarily take precedence over challenging and fulfilling job requirements. (http://wwww.csb.gov.hk/hkgcb/hrm/pdf). 2.3.3 Motivator-Hygiene Theory. Frederick Herzberg developed the motivator-hygiene theory. This theory is closely related to Maslows hierarchy of needs but relates more specifically to how individuals are motivated in the workplace. Based on his research, Herzberg argued that meeting the lower-level needs (hygiene factors) of individuals would not motivate them to exert effort, but would only prevent them from being dissatisfied. Only if higher-level needs (motivators) were met would individuals be motivated. (http://www.csb.gov.hk/hkgcb/hrm/pdf.fcle/e-motivation). The implication for managers of the motivator-hygiene theory is that meeting employees lower-level needs by improving pay, benefits, safety, and other job-contextual factors will prevent employees from becoming actively dissatisfied but will not motivate them to exert additional effort toward better performance. To motivate workers, according to the theory, managers must focus on changing the intrinsic nature and content of jobs themselves by enriching them to increase employees autonomy and their opportunities to take on additional responsibility, gain recognition, and develop their skills and careers. 2.3.4 Mcclellands Learned Needs Theory. McClellands theory suggests that individuals learn needs from their culture. Three of the primary needs in this theory are the need for affiliation (n Aff), the need for power (n Pow), and the need for achievement (n Ach). The need for affiliation is a desire to establish social relationships with others. The need for power reflects a desire to control ones environment and influence others. The need for achievement is a desire to take responsibility, set challenging goals, and obtain performance feedback. The main point of the learned needs theory is that when one of these needs is strong in a person, it has the potential to motivate behavior that leads to its satisfaction. Thus, managers should attempt to develop an understanding of whether and to what degree their employees have one or more of these needs, and the extent to which their jobs can be structured to satisfy them. (http://www.csb.gov.hk/hkgcb/hrm/pdf.fcle/e-motivation). 2.4 Major Process Theories Process (or cognitive) theories of motivation focus on conscious human decision processes as an explanation of motivation. The process theories are concerned with determining how individual behavior is energized, directed, and maintained in the specifically willed and self-directed human cognitive processes. Process theories of motivation are based on early cognitive theories, which posit that behavior is the result of conscious decision-making processes. The major process theories of motivation are expectancy theory, equity theory, goal-setting theory, and reinforcement theory. (http://www.csb.gov.hk/hkgcb/hrm/pdf.fcle/e-motivation). 2.4.1 Expectancy Theory. In the early 1960s, Victor Vroom applied concepts of behavioral research conducted in the 1930s by Kurt Lewin and Edward Tolman directly to work motivation. Basically, Vroom suggested that individuals choose work behaviors that they believe lead to outcomes they value. In deciding how much effort to put into a work behavior, individuals are likely to consider: †¢Their expectancy, meaning the degree to which they believe that putting forth effort will lead to a given level of performance. †¢Their instrumentality or the degree to which they believe that a given level of performance will result in certain outcomes or rewards. †¢Their valence, which is the extent to which the expected outcomes are attractive or unattractive. All three of these factors are expected to influence motivation in a multiplicative fashion, so that for an individual to be highly motivated, all three of the components of the expectancy model must be high. And, if even one of these is zero (e.g., instrumentality and valence are high, but expectancy is completely absent), the person will have not motivation for the task. Thus, managers should attempt, to the extent possible, to ensure that their employees believe that increased effort will improve performance and that performance will lead to valued rewards. (http://www.csb.gov.hk/hkgcb/hrm/pdf.fcle/e-motivation). In the late 1960s, Porter and Lawler published an extension of the Vroom expectancy model, which is known as the Porter-Lawler expectancy model or simply the Porter-Lawler model. Although the basic premise of the Porter-Lawler model is the same as for Vrooms model, the Porter-Lawler model is more complex in a number of ways. It suggests that increased effort does not automatically lead to improved performance because individuals may not possess the necessary abilities needed to achieve high levels of performance, or because they may have an inadequate or vague perception of how to perform necessary tasks. Without an understanding of how to direct effort effectively, individuals may exert considerable effort without a corresponding increase in performance. (http://www.csb.gov.hk/hkgcb/hrm/pdf.fcle/e-motivation). 2.4.2 Equity Theory. Equity theory suggests that individuals engage in social comparison by comparing their efforts and rewards with those of relevant others. The perception of individuals about the fairness of their rewards relative to others influences their level of motivation. Equity exists when individuals perceive that the ratio of efforts to rewards is the same for them as it is for others to whom they compare themselves. Inequity exists when individuals perceive that the ratio of efforts to rewards is different (usually negatively so) for them than it is for others to whom they compare themselves. There are two types of inequity—under-reward and over-reward. Under-reward occurs when a person believes that she is either puts in more efforts than another, yet receives the same reward, or puts in the same effort as another for a lesser reward. For instance, if an employee works longer hours than her coworker, yet they receive the same salary, the employee would perceive inequity in the form o f under-reward. Conversely, with over-reward, a person will feel that his efforts to rewards ratio is higher than another persons, such that he is getting more for putting in the same effort, or getting the same reward even with less effort. While research suggests that under-reward motivates individuals to resolve the inequity, research also indicates that the same is not true for over-reward. Individuals who are over-rewarded often engage in cognitive dissonance, convincing themselves that their efforts and rewards are equal to anothers. (http://www.csb.gov.hk/hkgcb/hrm/pdf.fcle/e-motivation). According to the equity theory, individuals are motivated to reduce perceived inequity. Individuals may attempt to reduce inequity in various ways. A person may change his or her level of effort; an employee who feels under-rewarded is likely to work less hard. A person may also try to change his or her rewards, such as by asking for a raise. Another option is to change the behavior of the reference person, perhaps by encouraging that person to put forth more effort. Finally, a person experiencing inequity may change the reference person and compare him or herself to a different person to assess equity. For managers, equity theory emphasizes the importance of a reward system that is perceived as fair by employees. (http://www.csb.gov.hk/hkgcb/hrm/pdf.fcle/e-motivation). 2.4.3 Goal-Setting Theory. The goal-setting theory posits that goals are the most important factors affecting the motivation and behavior of employees. This motivation theory was developed primarily by Edwin Locke and Gary Latham. Goal-setting theory emphasizes the importance of specific and challenging goals in achieving motivated behavior. Specific goals often involve quantitative targets for improvement in a behavior of interest. Research indicates that specific performance goals are much more effective than those in which a person is told to do your best. Challenging goals are difficult but not impossible to attain. Empirical research supports the proposition that goals that are both specific and challenging are more motivational than vague goals or goals that are relatively easy to achieve. (http://www.csb.gov.hk/hkgcb/hrm/pdf.fcle/e-motivation). Several factors may moderate the relationship between specific and challenging goals and high levels of motivation. The first of these factors is goal commitment, which simply means that the more dedicated the individual is to achieving the goal, the more they will be motivated to exert effort toward goal accomplishment. Some research suggests that having employees participate in goal setting will increase their level of goal commitment. A second factor relevant to goal-setting theory is self-efficacy, which is the individuals belief that he or she can successfully complete a particular task. If individuals have a high degree of self-efficacy, they are likely to respond more positively to specific and challenging goals than if they have a low degree of self-efficacy. (http://www.csb.gov.hk/hkgcb/hrm/pdf.fcle/e-motivation). 2.4.4 Reinforcement Theory. This theory can be traced to the work of the pioneering behaviorist B.F. Skinner. It is considered a motivation theory as well as a learning theory. Reinforcement theory posits that motivated behavior occurs as a result of reinforces, which are outcomes resulting from the behavior that makes it more likely the behavior will occur again. This theory suggests that it is not necessary to study needs or cognitive processes to understand motivation, but that it is only necessary to examine the consequences of behavior. Behavior that is reinforced is likely to continue, but behavior that is not rewarded or behavior that is punished is not likely to be repeated. Reinforcement theory suggests to managers that they can improve employees performance by a process of behavior modification in which they reinforce desired behaviors and punish undesired behaviors. (http://www.csb.gov.hk/hkgcb/hrm/pdf.fcle/e-motivation). 2.5 People Motivation- Non – financial Notes Most business recognizes the need for non- financial methods of motivation. The main ones are described briefly below. 2.5.1 Job Enlargement Job enlargement involves adding extra, similar tasks to a job. In job enlargement, the job itself remains essentially unchanged. However, by widening the range of tasks that need to be performed, hopefully the employees will experience less repetition and monotony. With job enlargement, the employees rarely need to acquire new skills to carry out the additional task. A possible negative effect is that job enlargement can be viewed by employees as a requirement to carry out more work for the same pay. (http://tutor ). 2.5.2 Job Rotation Job rotation involves the movement of employees through a range of jobs in order to increase interest and motivation. For example, an administrative employee might spent part of the week looking after the reception area of business, dealing with customers and enquires. Some time might then be spent manning the company telephone switch board and then inputting data onto a database. Job rotation may offer the advantage of making it easier to cover for absent colleagues, but it may also reduce productivity as workers are initially unfamiliar with a new task. Job rotation also often involves the need for extra training. (http://tutor ). 2.5.3 Job enrichment Job enrichment attempts to give employees greater responsibility by increasing the range and complexity of tasks they are asked to do and giving them the necessary authority. It motivates by giving employees the opportunity to use their abilities to the fullest. Successful job enrichment almost always requires further investment in employee training. (http://tutor ). 2.5.4 Team Working and Empowerment Empowerment involves giving people greater control over their working lives. Organizing the labour force into team with degree of autonomy can achieve this. This means that employees plan their own work, take their own decision and solve their own problems. Teams are set targets to achieve and may receive and may receive rewards for doing so. Empowerment teams are an increasingly popular method of organizing employees at work. (http://tutor ).

Critiquing a Clique Site :: Essays Papers

Critiquing a Clique Site Looking back, I realize that as a high school student, I was a member of a clique. I was in the â€Å"band geek† clique, but still, it was a clique. We had our own members, we snubbed some of those that didn’t belong in our group (well, the ones who had their own cliques and that snubbed us first), and we all got along well enough. This is what high school is about: groups. A high school student has to be in a group of some kind, or else something is wrong with that person in the eyes of other students. This is the way of the clique. That is why I have chosen to do my research paper on cliques, and I have chosen to do this paper for those people who know everything about the internet, and nothing about cliques. I found the site, http://www.mgh.org/wcc/teensite/adults/articles/cliques.html. This site deals with healthy choices for kids in grades six to eight, and was published by the Marquette General Hospital in 1998. This site is a good resource for parents a nd teens alike so they know how to deal with the pressure of cliques. The hardships of being in a clique can take their toll on a young teenager, first being part of the in group, then having a falling out and being enemies with those who were friends just days before. This is just one part of the dark side of cliques; the other, more worse part is being a scapegoat for a clique. This is usually a former member of the clique that was outcast, or it is an outsider that has been picked to be the target of humiliation by the clique. There is also the torment of being a former member no longer liked by the group. This ridicule is different for boys and girls: girls will most likely be ridiculed verbally, or will be given the silent treatment; boys will become the target of physical abuse. This site is to help parents learn how to deal with such treatment. The site says first for parents to be proactive. This will help them learn about their child’s social status, and will help them learn about their child’s friends. One of the best ways to find this information is to be active in the child’s class, volunteering for field trips, and helping out will give the parent some idea about what is going on in the class.

Racial Wealth Inequality

Caitlin Maltbie 009606309 Take Home Essay Question 2: Racial Wealth Gap Between Blacks and Whites After racial discrimination was made illegal in the 1960s, blatant and bigot racism has seemed to disappear, yet remaining racist attitudes have continued to put blacks at an overall disadvantage due to the progression of these attitudes into institutionalized settings and policies.The result of historical and contemporary discrimination and segregation is a widening gap of racial wealth between blacks and whites. Now, America could be argued to be a dichotomized society of black and white, proving that the Kerner Commission was correct to predict that â€Å"our nation is moving toward two societies, one black, one white, separate and unequal (Bobo & Smith 1998: 178). † Although whites didn’t necessarily intend on such a separate and unequal society, they don’t plan to change it either.The reasons behind this perpetuating, widening gap that I will discuss follow a hi story of disadvantage versus advantage dating back to the time of slavery, as well as segregation and discrimination in practices such as hiring processes, loans, residential structuring, wages, and government aid which have resulted in increases of unemployment among inner-city blacks as well as concentrated poverty. Blacks are at a disadvantage to whites because they lack human capital tracing back to equal education and job opportunity that would regularly aid to accumulate wealth as it does for whites.Starting back as far as the 16th century, slavery crippled chances for blacks to gain social and economic mobility. Now, we continue to see these crippling effects among generations of blacks. Not only do whites typically earn more annually, they have an easier time finding employment. The racialization of the state could be considered the starting point of the racial wealth gap between whites and gaps, and can be seen in policies and programs in the U. S.. Beginning during the tim es of slavery, if blacks were able to accumulate any amount of money they would spend it on the freedom of themselves and their family, whereas whites were ble to purchase assets with their money and eventually able to generate monetary inheritances for their upcoming generations. To add to the disadvantages, in the 19th century homestead laws didn’t allow African Americans to take advantage of federal land-grant programs. The core of the New Deal legislation, the Social Security Act of 1935 ultimately cut blacks out of receiving any benefits due to the fact that it exempted agricultural and domestic workers. The New Deal also exempted blacks because they fell beneath the threshold for coverage due to lower wages.After World War II, the Fair Housing Act funneled loans away from cities into the suburbs, furthering the chances of blacks to own homes. Contemporary policies such as the AFDC practically forces wanting recipients to rid themselves of any assets to pass a test in or der to receive benefits. The Internal Revenue Code and the Internal Revenue System gives tax breaks on assets such as homes, so due to the fact that blacks have less assets than whites, they again are at a disadvantage.The result has been that blacks have continuously put more into the system and have received less in return. Homeownership in America is the primary means for generating wealth, and it also serves as a pathway to community and schooling, and parental assistance in buying a first home is key to setting opportunities for their adult children and their families (Shapiro 2003: 87). However, although monetary support among whites is most likely to go from parents to adult children, elderly blacks are more likely to need help themselves from their adult children (Shapiro 2003: 87).This leaves new generations of blacks living up to a duty to provide for their elders rather than accumulating wealth for themselves and their children. Due to racialization of the state in homeow nership practices, it has been very difficult for blacks to come upon owning a home. Because government policy follows racialized attitudes, the FHA was able to follow â€Å"restrictive covenants† in which they prohibited blacks to move into white neighborhoods, claiming to â€Å"protect† these white communities.Also, the government began to help families buy homes by supporting loans, however these loans would only apply for nicer neighborhoods, where redlining, a process in which bank employees literally â€Å"redlined† bad parts of town, was absent. The result of this was that blacks couldn’t buy homes because the homes they could actually afford were in the redlined areas. The redlined areas often became their homes, where public housing was built after many blacks were condemned to live in their houses after the Urban Renewal Program intended to decrease inner-city slums by pushing them out.Also, construction of new freeways and highways through citi es during the 1950s forced blacks out of their homes (Wilson 1996: 194). Whites now were concentrated in the suburbs, and blacks were left trapped in public housing areas where these structures acted to form concentrations of urban ghettos, where unemployment rates were two-and-one half times as high as whites and annual wages 11 percent lower due to deindustrialization and the migration of jobs to the suburbs (Bobo & Smith 1998: 180).On top of this, the Reagan and Bush administration decreased spending to subsidize cities, proving the shift in the federal government’s support for basic urban programs which had exaggerated the rates of unemployment and social organization in the inner-city neighborhoods (Wilson 1996: 194). Even after racial discrimination became illegal in the 1960s, suburbs diversified among race rather than class, as zoning laws and discriminatory land-use kept blacks out of suburbs because they didn’t allow the construction of apartment buildings or low-income housing (Wilson 1996: 193).Economic detour can be traced back to the fact that blacks have never been in control of the means of production. For blacks wanting to start their own businesses, which would in turn make them able to generate more assets, it has been hard. Even while other people of color have been able to successfully own and run their own businesses, people fail to patronize black businesses. On top of not being able to own their own businesses, blacks have also had to face to the employers who still maintain negative racial attitudes towards blacks during hiring processes, especially involving inner-city residents (Oliver & Shapiro 1995: 198).More than nine-tenths of white parents (91 percent) surveyed hold assets compared to fewer than two-thirds of black parents (94 percent (Shapiro 2003: 81). Among families with positive assets, the financial capacities of the parents of white families are four times greater than those of the parents of black families ( Shapiro 2003: 83). Half of all whites come from families with the ability to deliver head-start assistance versus only a fifth of blacks (Shapiro 2003: 84).Cultural capital is yet another form of inheritance that allows families with ample assets to pass along nonmonetary benefits to their children that give them a competitive edge in school, the job market, and other areas. Cultural capital is typically found where wealth is high (Shapiro 2003: 85). Over the lifetime, whites’ inheritances are on average seven times larger than blacks’ inheritances. Black boomers will inherit 13 cents for every dollar inherited by white boomers.The legacy of grandparents of black baby boomers, who lived and toiled under harsh discrimination and glaringly different conditions, did not include financial resources. We see a glimpse of the racial reality of two generations ago continuing to impose and structure differences onto the present generation of young adults and a generation of chi ldren still coming up. Post World War II economic prosperity benefited whites substantially, whereas blacks still faced discrimination in the work place, therefore they were unable to really save any money.Deindustrialization in the post-World War II period had a profound effect on people living these cities. Many who had worked in manufacturing plants lost their jobs as plants closed and moved their operations in the South, overseas, or elsewhere. These people were forced to find other types of employments, and some became poor (Iceland 2003: 109). Building of low-income projects in already poor inner-city neighborhoods in the post-World War II period, contributed to poverty concentration. Residential segregation interacting with economic change and social alienation, played a key role in the perpetuation of concentrated poverty.National black unemployment is officially above 15 percent and rising while white unemployment is 7. 6 percent (Wright 2012: 142). Because the tactics for maintaining systemic white privilege changed in the 1960s, the rationalizations for explaining racial inequality changed, too. Whereas Jim Crow racism explained blacks’ social standing as the product of their imputed biological and moral inferiority, color-blind racism explains it as the product of market dynamics, naturally occurring phenomena, and presumed cultural deficiencies (Bonilla-Silva 170).

Ethics and Governance Essay

With reference to the Oxford English Dictionary (2012), ethics is described as the science of morals. It is also the agency of study with regards to the values of moral obligations of what is right or wrong. It also covers human behaviour. A company makes many decisions in a course of one day. It may include, launching new products, doing Public Relations, making sales, rewriting company policies and the recruitment or retrenchment of people, just to name a few. All business aims to do so ethically. To conduct business ethically, a business must first commit to adhering to laws and regulation (Timms, 2009). These are clearly defined, as they are in black and white. However, once the definition of what is ethical becomes contested, ethical dilemmas will arise. An ethical dilemma occurs when there is a situation which all alternate choices and behaviours have been deemed undesirable, and that there may be potential ethical consequences when one is unable to identify the right from the wrong. An example of an ethical dilemma is of follows, where one faces a conflict between his ethical code and his business aims. Cadbury, the chocolate producer, was offered a contract by Queen Victoria to send decorative tins of chocolates to every single one of her soldiers in the Anglo-Boer war in South Africa (Andrews, 1989). However, since he was against the war, which resulted in him deciding to resolve this conflict by completing the order without profit. According to Sir Adrian Cadbury (1987), his grandfather â€Å"made no profit out of what he saw as an unjust war. The additional work benefitted his employees, the royal presents consisting of tins of chocolates were sent to the soldiers, and it was a win-win situation. In a business, there are 3 levels of ethics: the ethics of the governing body, workplace ethics and individual ethics (Trevina & Nelson, 2011). A governing body usually is made up of a board of directors, whose aim in the company is to make good corporate practices easier and more available for employees. They too must drive and motivate employees to strive for good performance, conformance and results. Workplace ethics are important, as it ensures a conducive and supportive environment to work in. There must be equal treatment among and within subgroups, open communication between levels, and information must be transparent and readily available. Individual ethics is affected by four complementary elements. Individuals must be able to identify ethical issues; recognise the values and priorities through their grasping of principles, rules, norms and theories; developing their individual sets of reasoning and perception; and improving the strength of one to act upon such decisions (Trevina & Nelson, 2011). Before a difficult decision is made, the shareholder or the manager has to think a problem though. One way to do so is using Kidder’s Ethical Checkpoints (2006). He has 9 checkpoints which he feels will lead to an ethical decision being made. First, the manager needs to recognise that there is a moral issue. After determining the actor, he has to gather the relevant facts. Next, he tests for right-versus-wrong issues as well as paradigms. After applying resolution principles, he has to look for a third way before making the decision. After the decision is made, he has to revisit and reflect on the decision. After much research, I feel that Utilitarian approach is the most useful in guiding company decisions. I will explain why below. A decision is only ethical, according to the utilitarian principle, if it has the greatest net utility as compared to any other alternatives. As a decision maker, he must evaluate and weigh every option present to him. He must determine if there any positive or negative utilities arising from the option, before selecting the option that has the greatest net utility (Fuitzsche, 2005). It is very similar to the cost-benefit analysis used by stakeholders to consider the costs and benefits of a potential business decision. According to someone applying the utilitarian principle, a decision is only ethical if it has the greatest net utility and benefits the most people. An example of the utilitarian approach is when, during office hours, a company monitors their employee’s habits like tobacco consumption, as one man’s actions can affect the entire workplace. A prominent example is in Singapore, where there is the Smoking (Prohibition in Certain Places) Act. This act aims to protect the public from the hazardous effects of second-hand smoke. (Smoking Prohibitions, 2012) By making sure that employees do not smoke around the office, there would potentially be less health problems, so lesser sick employees which mean improved productivity and greater yields. There are two types of utilitarianism, act and rule. Act utilitarianism targets problems in the short run while rule utilitarianism targets problems in the long run. While act utilitarianism looks at the total aftermath of a single act, rule utilitarianism looks at the repercussion over a series of acts (Fuitzsche, 2005). For example, bribing is frowned upon. An example of bribing occurred in NES China in 1998. NES’s government affairs co-ordinator proposed giving gifts to government officials to establish a working relationship to help get its application approved. The other members were horrified, as this was considered bribery and a criminal offence in their country (Joerg & Xin, 2009). Under act utilitarianism, if bribing means that the company will get the business contract, thus allowing the employees to keep their jobs, it is ethical. However, under rule utilitarianism, this is not the case. Bribing, thou it will work in the short run by generating business, however, in the long run, potential customers will question if you got the job through bribing or because of your superior products you are selling. Therefore bribing does not provide the greatest utility (Fuitzsche, 2005). However, the utilitarian approach does have several limitations. Therefore other ethical theories have to be used together with the utilitarian approach in making company decisions. Firstly, there will be some people who will be at a disadvantage. A decision, according to the utilitarian principle, is only ethical if it has the greatest net utility. However, increasing net utility sometimes causes serious issues and affects people negatively. One notable historic example was the construction of the Great Wall of China (Construction of the Great Wall of China, 2006). Three hundred thousand prisoners and peasants were reportedly conscripted to help construct the great wall. It is said that ‘for every block laid down, one labourer lost his life.’ In terms of utilitarianism, a significant positive net utility was creates, as the great wall restricted the nomads and protected China. The Chinese citizens were safe for many years to come, at the expense of these three hundred thousand prisoners. Secondly, it is challenging estimating the results or effects of a business decision made. Also, a unit of currency gives more benefits to a poor person than to a rich person (Fuitzsche, 2005). In April 2012, all national servicemen in Singapore Armed Forces, Singapore Civil Defence Force and Singapore Police Force received a $60 p ay raise (Chua, 2012). A Recruit, who once earned $420, now earns $480, while a Lieutenant, who once earned $1120, now earns $1180. This increment would mean more to a recruit, who had a 12% pay increment, as compared to the Lieutenant, who had a 5% pay increment. It shows that it provides more utility to the poorer recruit. Therefore calculating if a decision maximises utility is difficult. Thirdly, not only are the consequences of a decision made hard to foresee, some decisions have consequences which are not easily or unable to be measured. In August, Apple manufacturer Foxconn improved on the working condition of its factory in China, such as introducing more breaks, lowering overtime, doubling wages and having better maintenance of safety equipment. (Rushe, 2012) Louis Woo, special assistant to the chief executive of Foxconn also released a statement, lamenting that reduction of overtime meant that they ‘needed to hire more people and implement more automation, more investment on robotic enginee ring’ (Yip, 2012). These costs to the company are easy to determine. However, the gains in utility from these implementations are difficult to tell. Would productivity increase? Will employees be more loyal? Will turnover rate be significantly lesser? Consequences like these are hard to measure. Lastly, utility gained from these business transactions mean different things to different people (Fuitzsche, 2005). Some managers gain utility from maximising their employee’s happiness. Some managers calculate utility as one which will increase their material wealth. Below I will compare utilitarian ethical theory with egoism and moral rights approach, to show that while utilitarianism has it flaws, it is still the more useful ethical theory. The utilitarian and egoism ethical theories are rather similar. Decisions made using egoism ethical theory will often provide the most favourable outcome to oneself, no matter how others around are affected (Fuitzsche, 2005). The other parties may not be harmed or disadvantages, but to the decision maker, it is of no concern. The decision maker using egoism thinks about how the proposition would involve him (Collins, 2009). If the proposition adds onto his interest, it is right. If it does not, it is wrong. However, the decision maker using utilitarianism thinks about how the preposition involves everyone affected by it. If the preposition done is advantageous to the most number of people, it is right. If it is harmful to the most number, it is wrong. Egoism is very similar to the philosophy of Adam Smith (1790). Egoism according to Smith is an excellent market allocating tool, which benefits society if one cares for their interests in the long run. Egoism usually views things in the short run, which is similar to act utilitarianism, which evaluates what happens in that one incident. However, while utilitarian considerers the total positive net utility, egoism only considers the decision maker’s se lf-interest. Thus decisions made using egoism would be deemed as unethical. The rights a principle gives you assured moral or human rights because you are a human being. The moral rights approach stresses that human beings have essential rights and power of choice that cannot be taken away by an individual’s action. Gerald Cavanagh (1990) explains six rights that he affirms are basic to business work. They include life & safety, honesty, privacy, freedom of conscience, freedom of speech and lastly private property. One example is regarding Firestone and their tires. In America, 1978, the National Highway and Transportation Safety Administration (NHTSA) began investigating the relation between Firestone’s Wilderness AT tires on Ford’s explore sport utility vehicle. The problem of Firestone’s tire separation was known internally at Firestone and by the automobile manufacturers; however, instead of recalling the tires, they kept it in the market, resulting in 150 preventable deaths and 500 injuries (Henn, 2009). As facts leaked out that were damaging to both companies, they became more aggressive in its defence. Firestone appeared to have violated several human rights. The firm knew that the tyres would create a hazard to humans. And by refusing to recall its products, it violated the right to truthfulness when the truth was extremely important. Even after the whole incident was resolved, public trust in Ford wavered. According to Henn (2009), a position of trust with the public that took many years and millions of dollars to build was severely damaged. According to the utilitarianism theory, an ethical decision is one that produces the most amounts of advantages to the majority of people (Trevina & Nelson, 2011). However, according to the moral rights approach, an ethical decision is one that does not breach on the rights of another. The utilitarian approach is best for countries with high collectivism while moral rights approach is best for countries with high individualism. According to Hofstede (2007), most Asian countries scored below average on Individualism. Singapore is no different, so the utilitarian approach is more applicable in companies here. According to Johnson (2007), there is the five ‘I’ format with regards to making decisions. A problem must first be ‘identified’, before it can be ‘investigated’. Next, one has to be ‘innovative’ in coming out with many solutions. After this, a solution has to be ‘isolated’ and then ‘implemented’. Making an ethical decision is easier when one applies an ethical theory. A decision made using the utilitarian theory is ethical if it provides the greatest net utility, and produces the greatest benefit for the largest amount of people. Rules developed under utilitarianism can become a moral code to be used throughout the company. Thou it has its limitations, as it is difficult to measure utility, or figure out the consequences of a decision, and that it might not benefit everyone, but it is still better as compared to egoism or moral rights approach. Utilitarian is the most useful theory in guiding company decisions, and when used together with moral rights and egoism, it shows what it means to be ethical.

Marginal cost curve Essays

Marginal cost curve Essays Marginal cost curve Essay Marginal cost curve Essay Marginal cost curve A curve that graphically represents the relation between the marginal cost incurred by a firm in the short-run product of a good or service and the quantity of output produced. Diagram: Marginal cost curve. * The MC curve is generally increasing. This is due to the decreasing  marginal productivity  of   labour. (Referred from econ econmodel. com downloaded on 14th May 2013). b. ) The Average Cost (AC) The average cost is the total cost divided by the number of units produced. Average cost curve – The graphical representation of average cost.Diagram: Average cost curve. The AC curve is U-shaped. This is because the ATC is made up of AVC, which is increasing, and AFC, which are decreasing. At low production quantities the decline in AFC dominates, but eventually the increasing AVC overwhelms the average costs. c. )The Average Fixed Cost (AFC) A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses that have to be paid by a company, independent of any business activity. It is one of the two components of the total cost of a good or service, along with variable cost.Average fixed cost curve A curve that graphically represents the relation between average fixed cost incurred by a firm in the short-run product of a good or service and the quantity produced. Diagram: Average Fixed Cost Curve: * AFC curve is always declining with quantity. This is because the same amount of fixed costs  is being averaged over a growing quantity of output, leading to a decline in the curve. * (Referred by web. pedia http:// www. amosweb. com downloaded on 14th May 2013). d). The Average Variable Cost (AVC) A cost that change with the change in volume of activity of an organization.Average variable cost  (AVC) is an  economics  term that refers to a firms  variable costs  (labour, electricity, etc. ) divided by the quantity (Q) of  output  produced. Variable cost s are those costs which vary with output. Diagram: Average variable cost curve: * The AVC is decreasing when it is above the MC curve and increasing when it is below the MC curve. This is because AVC is essentially the average of the marginal  costs of each unit of output. This will lead to an increasing or a U-shaped AVC curve. (Referred by http://en. wikipedia. org downloaded on 14th May).Answer 2. ) Relationship between the law of diminishing returns and the concept of economies of scale: * Law of diminishing returns. The tendency for a continuing application of effort or skill toward a particular project or goal to decline in effectiveness after a certain level of result has been achieved. The law of diminishing returns say that each time we do something to receive a benefit, the benefit will be less and less. (Reference – Michale W. Newell, Marina N, Grashina : The Project Management). * Features. The main features of this law are as follows:- . ) Only one variable inp ut is varied and all others are held constant. 2. ) No change in technique of production. 3. ) Variable proportions production functions. It means more of a variable factor can be used with the constant input of the fixed factors. 4. ) All units of variable factor are homogeneous. 5. ) Adequate or standard doses of variable factor are applied. * Explanation. The law of diminishing returns means that the productivity of available  declines as more is used in  short-run production, holding one or more inputs fixed.This law has a direct bearing on  market supply, thesupply price, and the  law of supply. If the productivity of a variable input declines, then more is needed to produce a given quantity of output, which means the cost of production increases, and a higher supply price is needed. The direct relation between price and quantity produced is the essence of the law of supply. Total Product Curve: The curve labelled TP in the top panel is the  total product curve, the t otal number of goods produced per hour for a given amount of labour.The increasing slope of the TP is attributable to the law of diminishing marginal returns. Marginal Product Curve: The Marginal curve indicates how the total production of goods changes when an extra worker is hired. The negatively-sloped portion of the MP curve is a direct attributable to the law of diminishing marginal returns. Average Product Curve: The  average product curve indicates the average number of goods produced by workers. The negatively-sloped portion of the AP curve is indirectly caused by the law of diminishing marginal returns.As marginal product declines, due to the law of diminishing marginal returns, it also causes a decrease in average product. * Arleen J. Hoag,  John H. Hoag(2006), Business and Economics, pg. 122 (London: World Scientific Publishing Co. Ltd. ) Returns to scale,  in economics is the quantitative change in output of a firm or industry resulting from a proportionate increas e in all inputs. If the quantity of output rises by a greater proportion- e. g. , if output increases by 2. 5 times in response to a doubling of all inputs- the  production process  is said to exhibit increasing returns to scale.Such economies of scale may occur because greater efficiency is obtained as the firm moves from small- to large-scale operations. Decreasing returns to scale occur if the  production  process becomes less efficient as production is expanded, as when a firm becomes too large to be managed effectively as a single unit. Brit britannica. com downloaded on 19th May 2013. According to Leibhfasky, †Returns to scale relates to the behaviour of total outputs as all inputs are varied and is a long run concept. * Explanation:In the long-run, output can be increased by increasing all factors in the same proportion or different proportions. Ordinarily, law of returns to scale refers to increase in output as a result of increase in all factors in the same p roportion. Such an increase in output is called Returns to Scale. * Aspects of Returns to Scale. As in the case of returns to a factor, there are three aspects of returns to scale, viz. (1) Increasing Returns to Scale, (2) Constant Returns to Scale, (3) Diminishing Returns to Scale. 1. Increasing return of scale:-Every firm tries to earn more and more profit by multiplying its output.Initially production increases at faster rate than increase in the input. It is evident from the following schedule that by doubling additional labour and capital, output increases from 16 units to 25 units. It shows that inputs increased by 100%, whereas capital increased by 150%. By doubling, production increased from 25 to 60 showing that input increased by 100% but the output increased by 140%. this shows the law of increasing return. Thus, any percentage increase in inputs is causing a greater percentage increase in output. Increasing returns to scale are thus operative.The main cause of its operat ion is that when scale of production is increased then due to indivisibility of factors such as labour, tools, implements and machines, division of labour and specialization and many types of economies are available. On account of these economies, proportional increase in returns is more than the proportionate increase in factors of production. All these economies are only internal economies as these are related to the scale of production of the concerned firm. 2. Constant Return to Scale:-If the scale of production is further increased, it is found that the both input and output increase at equal rates i. . , at the same percentage. Thus increasing the production, the increase in output remains constant i. e. , 100%. * This situation arises, when after reaching a certain level of production, economies of scale are counter-balanced by diseconomies of scale. In mathematical terminology, that production function which reflects constant returns to scale is called Linear and ‘Homo geneous Production Function’ or homogeneous function of First degree and is important in elucidating Euler’s Theorem in distribution.This function states that if labour and capital are increased in equal proportion then output will also increase in the same proportion. 3. Decreasing Return of Scale:-The increase in percentage of input is more than the output. In the following diagram, with every increase in input i. e. , 100%, output increases at lesser than 100%, showing the law of decreasing return of scale. S. A. Siddiqui (2006), Managerial Economics and Financial Analysis, pg. 107 (New Delhi: New Age International Publishers) Returns to scale are thus diminishing.The main cause of its operation is that diseconomies outweigh economies of scale, e. g. unwieldy business, indivisible factors becoming inefficient and less productive, difficulties of control and rigidities due to large managements, higher cost of skilled labour, price of raw material going up, high tran sport charges, etc. (Reference – TR Jain and OP Khanna, Business Economics p. 142). Answer3. ) (a) ‘In the real world there is no industry which conforms precisely to the economist’s model of perfect competition. This means that the model is of little practical value’.Perfect competition: (1) buyers  and  sellers  are too numerous and too small to have any  degree  of  individual  control over  prices, (2) All  buyers and sellers seek to maximize their  profit  (income), (3) buyers and  seller  can freely  enter  or leave the  market, (4) all buyers and sellers have  access  to  information  regarding  availability, prices, and  quality  of  goods  being traded, and (5) All goods of a particular nature are  homogeneous, hence substitutable for one another. Also called  perfect market  or  pure competition. (Reference:   businessdictionary. om downloaded on 19th May 2013. ) Diagram for perfect com petition: (Referred by economicshelp. org downloaded on 19th May 2013). A perfect competition is unrealistic as many of its conditions are quite difficult to fulfil. Especially no barriers to entry, is very rare as even start up cost can act as a significant barrier. While other conditions like perfect information and identical products are though possible not common. Apart from these there are many other conditions like no transportation cost which is again highly rare.The example of perfect competition would be in agriculture. Identical products (fruits, vegetables, etc. ), and not really need any advertising. There are no barriers to enter. It is the most realistic example, in reality perfect competition does not exist. (Reference: khan academy). (b). Short Run Price and Output for the Competitive Industry and Firm: 1. Short Run Equilibrium of the Firm A firm is in equilibrium in the short run when it has no tendency to enlarge or contract its productivity and needs to earn maxi mum profit or to incur minimum losses.The short run is a period of time in which the firm can vary its productivity by changing the erratic factors of production. The number of firms in the industry is fixed since neither the existing firms can leave nor new firms can enter it. 2. Short Run Equilibrium of the Industry An industry is in equilibrium in the short run when its total output remains steady there being no propensity to enlarge or contract its productivity. If all firms are in equilibrium the industry is also in equilibrium. For full equilibrium of the industry in the short run all firms must be earning normal profits.But full equilibrium of the industry is by sheer accident for the reason that in the short rum some firms may be earning super normal profits and some losses. Even then the industry is in short run equilibrium when its quantity demanded and quantity supplied is equal at the price which clears the market. Roger A. Arnold,(2005,08) Economics, 8th ed. (USA: Thoms on Learning, Inc. 2008) In the short run the equilibrium market price is determined by the interaction between market demand and market supply. In the diagram shown above, price P1 is the market-clearing price and this price is then taken by each of the firms.Because the market price is constant for each unit sold, the AR curve also becomes the Marginal Revenue curve (MR). A firm maximises profits when marginal revenue = marginal cost. In the diagram above, the profit-maximising output is Q1. The firm sells Q1 at price P1. The area shaded is the economic (supernormal profit) made in the short run because the ruling market price P1 is greater than average total cost. Not all firms make supernormal profits in the short run. Their profits depend on the position of their short run cost curves. Some firms may be xperiencing sub-normal profits because their average total costs exceed the current market price. Other firms may be making normal profits where total revenue equals total cost ( i. e. they are at the break-even output). In the diagram below, the firm shown has high short run costs such that the ruling market price is below the average total cost curve. At the profit maximising level of output, the firm is making an economic loss (or sub-normal profits) The Effects of a change in Market Demand In the diagram below there has been an increase in market demand (ceteris paribus).This causes an increase in market price and quantity traded. The firms average revenue curve shifts up to AR2 (=MR2) and the profit maximising output expands to Q2. Notice that the MC curve is the firms supply curve. Higher prices cause an expansion along the supply curve. Following the increase in demand, total profits have increased. An inward shift in market demand would have the opposite effect. Think also about the effect of a change in market supply perhaps arising from a cost-reducing technological innovation available to all firms in a competitive market. Reference: tutor tutor 2u. net downloaded 19th May 2013. (c) The long-run perfectly competitive equilibrium for the firm:-  ¦ Economic profits bring entry by new firms. The industry supply curve shifts rightward and reduces the market price. The fall in price reduces economic profit and decreases the incentive to enter the industry. New firms enter until it is no longer possible to earn an economic profit.  ¦ Economic losses lead to exit by existing firms, which shifts the industry supply curve leftward. The price rises, and the higher price reduces economic losses.Firms exit until no firms incur an economic loss. Firms change their plant size if it increases their profits. D=P= MR = AR - the firm maximizes its profits. P = minimum short-run average cost (SRAC) The firm’s economic profit is zero. P = minimum (LRAC) - the firm’s plant size cannot be changed in order to increase its profits. Frank Machovec, (2003), Perfect Competition and Transformation of Economics, (New York: Taylor;am p; Francis e-Library, 2003). Answer 4. ) MonopolyA pure monopoly is a single supplier in a market.For the purposes of regulation,  monopoly power  exists when a single firm controls 25% or more of a particular market * Less Efficient:- * ABCPM :-Supernormal Profit (AR-AC) Q * Shaded portion:- Deadweight welfare loss (combined loss of producer and consumer surplus) compared to competitive market * Higher Prices:-Higher Price and Lower Output than under Perfect Competition. This leads to a decline in consumer surplus and a deadweight welfare loss * Allocative Inefficiency. A monopoly is allocative inefficient because in monopoly the price is greater than MC.P ;gt; MC. * Productive Inefficiency A monopoly is productively inefficient because it is not the lowest point on the AC curve. * X Inefficiency. It is argued that a monopoly has less incentive to cut costs because it doesnt face competition from other firms. Therefore the AC curve is higher than it should be. * Supernormal P rofit. Leads to an unequal distribution of income. * Higher Prices to Suppliers   A monopoly may use its market power and pay lower prices to its suppliers. E. g. Supermarkets have been criticised for paying low prices to farmers. Diseconomies of Scale   It is possible that if a monopoly gets too big it may experience diseconomies of scale. higher average costs because it gets too big   * Charge higher prices to suppliers. Monopolies may use their supernormal profits to charge higher prices to suppliers. Economic organisation(2013) Website:- economicshelp. org/microessays/markets/monopoly. html 2More Efficient:- * Research and Development. Monopolies can make supernormal profit; this can be used to fund high cost capital investment spending. Successful esearch can be used for improved products and lower costs in the long term.. * Economies of scale. Increased output will lead to a decrease in average costs of production. These can be passed on to consumers in the form of lowe r prices. If a monopoly produces at output Q1, average costs (AC 1) are much lower than if a competitive market had firms producing at Q2 (AC 2). * Monopolies Successful Firms. A firm may become a monopoly through being efficient and dynamic. A monopoly is thus an efficient. For example Google has gained monopoly power through being regarded as best firm for search engines.Tejvan R. Pettinger, Economic Dictionary,(UK: Economics Blog, 2013)Retrieved from:- economicshelp. org/microessays/markets/advantages-monopoly. html Answer 5. ) Economic governance in Australia has undergone radical changes since the 1970s. Many of these changes are associated with the market-oriented policies collectively referred to as ‘microeconomic reform’. Broadly speaking, microeconomic reform can be defined as government policies or initiatives aimed at improving the performance and/or the efficiency of industries or sectors in the economy (Forsyth 1992).Remarkably, such a quest for efficiency was not a major policy focus for much of the twentieth century in Australia. However, since the 1970s, growing pressure on the economy, together with evidence of widespread inefficiency, saw microeconomic reform become a key aspect of economic policy in Australia. The era of microeconomic reform in Australia may be divided into three main phases, with a degree of overlap. In the first, deregulatory, phase, the main focus was on rationalising public intervention in private sector markets, with the object of ‘getting prices right’.In the second phase, referred to here as the ‘privatisation’ phase, attention shifted to market-oriented reforms of the public sector, including corporatisation and competitive contracting as well as privatisation. In the third ‘competitive regulation’ phase, the idea of deregulation was replaced by regulation designed to produce, or simulate, competitive market outcomes (see also Parker this volume). The central argum ent of the chapter is that each of these phases was associated with the prominence of particular institutions and with specific tendencies in economic governance. In particular, whereas he governance models associated with the privatisation phase, the private corporation was taken as the ideal model of public sector governance. By contrast, in the competitive regulation phase, governments have relied on increasingly intrusive systems of regulation to control both public and privately-owned monopolies Privatisation often appears to be driven by political expediency and ideology rather than by economic theory. This dislocation between theory and practice led Kay and Thompson (1986) to declare privatisation in the United Kingdom a ‘policy in search of a rationale’.In fact, there has been significant economic research on optimal ownership in the past 20 years, including the comparison between government and private ownership. This work provides the basis for understanding b oth the success and failure of privatisation. Three Causes of Privatisation: Performance in privatisation must be judged on a case-by-case basis. Three key privatisations in Australia have been the Commonwealth Bank, the partial privatisation of Telstra and the privatisation of the Victorian electricity system. How do these privatisations ‘stack up’ against the theory? 1. The Commonwealth BankIn the 1940s and 1950s the Commonwealth Bank was the central banker for Australia. The Reserve Bank of Australia took over this role in 1959, placing the Commonwealth Bank in a similar position to a number of highly regulated private banks. Deregulation of the Australian banking sector in the 1980s meant that there was little if any special role for State-owned commercial banks, and the Commonwealth bank was privatised in three tranches during the 1990s. The first sale of 30 per cent of the Bank in 1991 was the first large privatisation by share float in Australia and it set the be nchmark for future sales, such as the sale of GIO and Qantas.Overall, it is likely that the Government sold the Commonwealth at a discount to its true market value (Harris and Lye 2001). But in terms of 17economic welfare it seems clear that the sale of the Commonwealth Bank made perfect sense. The bank operated in active competition with private banks and its functions were essentially identical to those private competitors. In fact, given the tendency for politicians to seek short-term electoral kudos by railing against the banking system, it is likely that continued government ownership of the Commonwealth Bank would have opened it up to political exploitation in the 1990s.In economic terms, the privatisation of the Commonwealth Bank was clearly sensible policy. 2 Telstra Telstra was formed in 1992 by the merger of Telecom Australia and the Overseas Telecommunications Corporation (OTC). Both of these were fully owned by the Commonwealth Government. Telecom Australia controlled Au stralia’s domestic telephone network while OTC controlled overseas telecommunications. In the late 1990s, 49. 9 per cent of Telstra was sold by the Government in two tranches. This partial privatisation is the largest by value in Australia, reaping over $30 billion for the Commonwealth. 1At first blush, the sale of Telstra might appear similar to the sale of the Commonwealth Bank. After deregulation in July 1997, Telstra competed vigorously with privately-owned carriers. Since then, Telstra has lost market share in both domestic long-distance calls and overseas calls. Telstra also currently faces vigorous competition in mobile telephony. 18Unlike banking, however, telecommunications involves a key natural monopoly element, the customer access network (CAN) that provides the ‘last link’ in the telephone network between a switch and a customer’s phone.Telstra owns the CAN and its private competitors rely on Telstra providing them access to the CAN in order t o compete. Telstra could eliminate its private competitors outside the CBD areas of Australia if it refused them the right to either originate or terminate calls using the CAN. Telstra faces a wide range of regulations, including retail price controls, procedures for setting wholesale access prices and rules to prevent any anticompetitive behaviour. This regulation has been modified over the past five years and in 2001 the Productivity Commission recommended further reform of Telstra’s regulatory regime (Commonwealth of Australia 2001).In 2002 the Federal Government investigated and rejected reforming Telstra by accounting separation to ‘isolate’ the CAN. The partial privatisation of Telstra failed to adequately recognise the source of market failure- the natural monopoly CAN. Neither did it establish appropriate procedures to deal with this problem. One solution might have been vertical separation of the CAN from the rest of Telstra. The CAN could have remained in public ownership with open access while the remainder of Telstra could have competed with other telecommunications companies. Alternatively, the management of the CAN could have changed.For example, the CAN could be 19jointly owned by a number of licensed carriers. These carriers would have a mutual obligation to maintain the CAN but otherwise would compete. The sharing of infrastructure facilities between competing firms sometimes occurs with gas pipelines. Discontent with the partial privatisation has made it politically difficult to sell the remainder of Telstra. In the absence of a restructured approach to the CAN, further privatisation will simply mean ongoing costly regulation. Such regulation will continue into the future as the CAN grows in importance for data rather than voice telecommunications traffic. The Victorian electricity system The creation of a National Electricity Market (NEM) was a key part of the Hilmer reforms. This market involves generators competing to s ell power into a grid connecting South Australia, Victoria, New South Wales and Queensland. The proposed construction of BassLink will connect Tasmania to the NEM. Privatisation is not required under the NEM but private generators are able to compete with government-owned facilities. The Kennett Government in Victoria decided to sell the State’s electricity assets to the private sector.Privatisation was preceded by vertical and horizontal restructuring, including the creation of five distribution/retail companies, five competing generation businesses and a single transmission business. The total proceeds of the privatisations in the mid-201990s were approximately $22. 5 billion; second only to Telstra in terms of total revenue raised. 22By separating competitive generation from natural monopoly elements, like transmission and distribution, the Victorian electricity privatisations avoided the issues of access and competitive abuse that have dogged telecommunications.Further, s ome measures of performance, such as the reliability of the distribution, have significantly improved. 23 However, both transmission and distribution have limited scope for competition and these prices need ongoing regulation. As noted earlier, this regulation has been contentious. Political interference still occurs, as both generation prices are capped under the NEM and maximum prices for power to households are set. For example, in 2001 the Victorian Government rejected recommended increases in household power prices, leading to comparisons with the Californian electricity crisis and oncerns over the long-term viability of distributors/retailers if they are unable to pass on increased wholesale electricity prices to customers. 24 The shift to a national market has also required modifications, for example, in the face of claims of price rigging by generators. 25 Further, it is not clear that long-term competition between State-owned electricity systems and private systems is viabl e. While generation and retailing can be open to competition, a preferred approach might have been to retain public ownership of transmission and distribution lines. 1Rather than heavy-handed profit-based regulation, the ongoing operation and maintenance of these facilities might have been handled through private contractors, with the relevant governments setting transmission and distribution charges to cover cost. At the same time, electricity experience shows that privatisation is not a cure for short-term political interference in key infrastructure assets. (b). The privatisation process has slowed in Australia. But this is to be expected. Most of the obvious privatisations have been completed and both politicians and bureaucrats are realising the limitations of a naive approach to privatisation.Public pressure against privatisation has grown. Despite the Federal Government’s preference for privatising the remainder of Telstra, such a policy is currently unpalatable to the electorate. Similarly, in New South Wales attempts by senior politicians to push for electricity privatisation have been thwarted by public opposition. While privatisation in Australia is not dead, it is ‘on the nose’. The current public backlash against privatisation is a direct consequence of its naive application. Some privatisations have not worked.While these sales have raised short-term revenue for the government, they have not resulted in improved social welfare because they have not carefully considered any sources of market failure and dealt appropriately with these failures. 22At the same time, the underlying motivations for privatisation remain relevant. Government still feels the need to reduce fiscal pressures and public–private partnerships (PPP), where the government ties the private development of infrastructure assets to long-term government funding, represents a new face of privatisation.Thus privatisation continues, but under another name. Aus tralia requires an integrated approach to privatisation and regulation. Private ownership with regulation is simply one of a number of options for dealing with market problems and public policy needs to recognise the costs and benefits of alternative options. This means that some previous privatisations might need to be radically re-evaluated. For example, it might be desirable to restructure Telstra with current private shareholders owning the potentially competitive assets, while the government retains the CAN.It also means that some privatisations should proceed, such as the sale of the NSW electricity generation facilities, while some other assets, such as the Victorian electricity transmission system, might better be returned to government ownership. Finally, it means that governments should not be allowed to use privatisation as an expedient source of funds. An alternation to government accounting is required so that privatisation revenues cannot be used to prop up a governmen t budget. While this reform has already started, with analysts focusing on ‘underlying’ deficit figures that remove privatisation revenues, it needs to be formalised.Privatisation and regulation are all about incentives- and the first incentives that need to be fixed are those facing our politicians.

Choose A Product That Has Been Targeted For One Market Term Paper

Choose A Product That Has Been Targeted For One Market Term Paper Choose A Product That Has Been Targeted For One Market – Term Paper Example Defining the target market Home Depot’s products have traditionally being targeted towards men. However, guided by significance a house carries in the personal life of a person, its attachment with women, attributes of retreat, security and personalities compelled it to offer its DIY and home improvement products to women category. Detailed dissection of this target market goes as:Demographic- demographics will include women customers who demand coziness, personal touch and warmth to their residing place. It will be placed in high-class income cadre able to avail the services of professional builders and contractors.Socio-economic- it will include factors like working class of people and those who wish to add a unique element to their babies room or similar other section of the house.Psychographic- psycho graphically, Home Depot’s products in women category will cater to the needs of urban class customers. This will also incorporate features of enhanced appearance, stat us and show demanded by corporate clients.Lifestyle- Home Depot’s products will leave an experience in the minds of customers who consider their home dà ©cor and furnishing equivalent to their own personality.Defining the product mixThe product mix for this new group will encompass:Product: home improvement tools, do-it-yourself projects, home dà ©cor accessories, etc.Price: targeted at middle and high income strata.Place: women specially will be allowed to carry out their own renovations proudly through stores; corporate clients will be specially served through professionals and agents for added services (CCK 2011).Promotion: primary promotion will be done through women and family magazines and display of designed interiors at company’s stores. Discount coupons and offer pamphlets will be distributed at real estate agents and offices also.Value-added products and servicesTo grab immediate attention and response, differential sections will be opened up at its stores. Busy customers will be served separately due to their hectic schedules and time constraints. Uniquely, short sessions for home improvement will also be conducted, providing customers with fundamental knowledge of colors, styles and aesthetics (Tolunay 2011). CCK. Home Depot. 19 November 2011 Tolunay, Cenk. Home Depot vs. Lowe’s: Financial Analysis and Comparison. 19 November 2011

Soil Erosion in Africa

Soil Erosion in Africa Soil erosion in Africa threatens food and fuel supplies and can contribute to climate change. For over a century, governments and aid organizations have tried to combat soil erosion in Africa, often with limited effect. The Problem Today Currently, 40% of soil in Africa is degraded. Degraded soil diminishes food production and leads to soil erosion, which in turn contributes to desertification. This is particularly worrisome since, according to the UNs  Food and Agriculture Organization, some 83% of sub-Saharan African people depend on the land for their livelihood, and food production in Africa will have to increase almost 100% by 2050 to keep up with population demands. All of this makes soil erosion a pressing social, economic, and environmental issue for many African countries. Causes for Erosion Erosion happens when wind or rain carry topsoil away. How much soil is carried away depends on how strong the rain or wind is as well as the soil quality, topography (for example, sloped versus terraced land), and the amount of ground vegetation. Healthy topsoil (like soil covered with plants) is less erodible. Put simply, it sticks together better and can absorb more water. Increased population and development put greater stress on soils. More land is cleared and less left fallow, which can deplete the soil and increase water run-off. Overgrazing and poor farming techniques can also lead to soil erosion, but it is important to remember that not all causes are human; climate and natural soil quality are also important factors to consider in tropical and mountainous regions. Failed Conservation Efforts During the colonial era, state governments tried to force peasants and farmers to adopt scientifically approved farming techniques. Many of these efforts were aimed at controlling African populations and did not take into account significant cultural norms. For instance, colonial officers invariably worked with men, even in areas where women were responsible for farming. They also provided few incentives - only punishments. Soil erosion and depletion continued, and rural frustration over colonial land schemes helped fuel nationalist movements in many countries. Not surprisingly, most nationalist governments in the post-independence era tried to work with rural populations rather than force change. They favored education and outreach programs, but soil erosion and poor output continued, in part because no one looked carefully at what farmers and herders were actually doing. In many countries, elite policymakers had urban backgrounds, and they still tended to presume that rural peoples existing methods were ignorant and destructive. International NGOs and scientists also worked off of assumptions about peasant land use that are now being called into question. Recent Research Recently, more research has gone into both the causes of soil erosion and into what are termed indigenous farming methods and knowledge about sustainable use. This research has exploded the myth that peasant techniques were inherently unchanging, traditional, wasteful methods. Some farming patterns are destructive, and research can identify to better ways, but increasingly scholars and policymakers are emphasizing the need to draw the best from scientific research and peasant knowledge of the land. Current Efforts to Control Current efforts, still include outreach and education projects, but are also focusing on greater research and employing peasants or providing other incentives for participating in sustainability projects. Such projects are tailored to local environmental conditions and can include forming water catchments, terracing, planting trees, and subsidizing fertilizers. There have also been a number of transnational and international efforts to protect soil and water supplies. Wangari Maathai won the Nobel Peace Prize for establishing the Green Belt Movement, and in 2007, the leaders of several African states across the Sahel created the Great Green Wall Initiative, which has already increased forestation in targeted areas. Africa is also part of the Action against Desertification, a $45 million program that includes the Caribbean and Pacific. In Africa, the program is funding projects that will protect forests and topsoil while generating incomes for rural communities. Numerous other national and international projects are underway as soil erosion in Africa gains greater attention from policymakers and social as well as environmental organizations. Sources Chris Reij, Ian Scoones, Calmilla Toulmin (eds). : Indigenous Soil and Water Conservation in AfricaSustaining the Soil (Earthscan, 1996) Food and Agriculture Organization of the United Nations, Soil is a non-renewable resource. infographic, (2015). Food and Agriculture Organization of the United Nations, Soil is a non-renewable resource. pamphlet, (2015). Global Environmental Facility, Great Green Wall Initiative (accessed 23 July 2015) Kiage, Lawrence,  Perspectives on the assumed causes of land degradation in the rangelands of Sub-Saharan Africa.  Progress in Physical Geography Mulwafu, Wapulumuka. : A History of Peasant-State Relations and the Environment in Malawi, 1860-2000.Conservation Song (White Horse Press, 2011).