Strategy and Change Management

TABLE OF CONTENTS Introduction Severstal strategic analysis External environmental analysis Porter’s five forces Yips globalisation strategy Current strategy Industry life cycle Market segmentation Severstal acquisition activities BCG MATRIX Ansoff matrix Stakeholder analysis Conclusion Appendix References Introduction: This assignment is based on one of the biggest steel company in the world it is known as Severstal. This company was founded in 1955 by Cherepovets steel mill and remain under soviet government ownership until 1991. In 1993 Alexel Mordashov became owner of this company and registers the company name as Severstal in Russia.After the privatisation it becomes one of the international Russian companies with overseas export and ownership of foreign assets. And they also listed in LSE and RTS stock markets. They own production in Canada, US, and Europe. Severstal is one of the leading steel manufacturers in Russia. It consists of six segments such as Kolpino processi ng service Centre, metal ware, pipes, trading and services, steel and scraps procurement In 2008, Severstal became third biggest steel producer in Russian and 14 in the world, and the revenue reaches to US$ 22. billion. In same year they decided to change company structure by making three divisions such as Severstal international, Severstal Russian steel and Severstal resources. These changes improved their profit in the world. In 2007 they also established gold business in the world. In 2010 Severstal improve their leading position in Russian market. However, they are famous for their high value added products such as galvanized sheet, cold rolled and pipes. However, the company got 10 boards of directors and 5 are independent director including chairman.Finally, this research will examine the company strategic performance and tell us detail information of the company including its environmental factors and financial performance in the world. EXTERNAL ENVIRONMENT FACTORS: Macro env ironmental factors will critically analysis the company external factors through it’s broadly frame work such as pest analysis. This framework will help to know about the company environment in the world. Political factors: * Government are establishing new trade barriers for all that can have negative or positive impact on their business. Other political factors which can affect their business are adverse impact on business, such as operational results and financial impact. * Severstal investment policy can have regional political risk. * All majorities of production and operations are taking place in other region and countries with stand able political and social system. Economic factors: * Slow rate of economic growth can affect Russian economy. * Recession can reduce demand of all raw materials such as oil, gas and metals that leads to loss for the company. Increased in inflation can decline production and increased unemployment in the country. * Increased in oil price ca n lead to slow down in world economic growth and reduce demand of steel in the world. Social factors: * Social corporate responsibility. * Changes in employment laws and labour can affect on their business. * Significant attentions and following social rules of government can lead company growth in future. * Creating employment satisfaction and fulfilment of employee working potential can develop good relationship with labour. Technological factor: New technology and innovations is required to develop the market position. * Implementing new techniques methods for development * Creating new types of steel alloys such as construction products of building. * Better services, quality and technology for manufacturing and production. Porter’s five forces http://www. google. co. uk/search? q=porter's+five+forces;hl=en;prmd=imvnsb;tbm=isch;tbo=u; However, steel industries were not profitable from long time. All the manufacturers and producers were not seen profitable in late 1990 to 2003.In USA, more than 50 industries went for bankruptcy. Eventually, twenty first century becomes revolutionary for steel industry. For example: mittal steel paid $35 billion to buying European giant and becoming world largest steel industry in the world. New entrants: There are two powerful entrants in the steel industries they are reorganisation and privatisation. There will be limited threats of new entrants in steel industry. However, Chinese are increasing capacity of rate at 30%. Since 1990 Chinese has become third world exporter and producer in the world after Russia and Japan.Although the steel industry will have a competitor such as china, and India steel industry can become the threat for Severstal. Substitutes: There are not many substitutes for steel, but because of the advance technology they introduced substitutes by other material such as aluminium in cars, plastics and aluminium are used to make this thing. However, in present world steel has become one third thinne r over last few years. Similarly for construction big items such as building, bridges, trains etc steel are only used to make these items.Buyer power: There are many key buyers for steel such as Toyota, Ford, Volkswagen and one of the leading steel buyers who produce food cans is known as crown holding, they make one third of food can in Europe and North America. All these industries buy high volume of steel to produce their items. Car manufacturers are the leading buyers of steel in the world. Supplier power: The key producer of steel is iron ore. There are three big ORE producers they are TINTO, RIO, CVRD and BHP Billiton they control 70% of steel market in the world. The supplier power of steel maker is very high in this ndustry. Despite of recession, steel ore price was not decreased in the market. Competitive Rivalry: Since 2000, the industry has become very fragmented, the top most producers in the world has been accounted for 14% of production. Most of them were selling the s teel in tonnes. Price were decreased in 19th century and bit slow down in the demand. However in the twenty first century demand boomed by Chinese market. Chinese were the largest consumer of steel in the world. Other big companies like mittal, Tata and thyssen Krupp were buying weaker players in the market.New steel giant mittal becomes the world largest producers in the world. Yip’s globalisation strategy: From the above macro environment situation the company decide to adapt the global strategy in order to achieve higher revenue and profit in the future. This yip globalisation model helps to evaluate the industry. http://www. google. co. uk/imgres? um=1;hl=en;sa=N;biw=1280;bih=709;tbm=isch;tbnid=ED-UITUWq9ob0M:;imgrefurl=http This model is consisting of four drivers which help industry for global expansion in international market.However, apply this framework in Severstal industry to see it benefits: Market drivers: If we see the performance of Severstal, it most revenue i s generating by North America, Russia and other resources of the world. According to its annual report the company is generating revenue from all across the world. The steel market is cyclical with short peak to peak demand in the regional markets. However, in future company can dominate the position Chinese market. Basically, Chinese has very less amount of producers in the market to supply steel in international market.Cost drivers: Mostly the steel industry generates its income through iron ore and other raw materials including, energy, electricity and labour. However, to increase its revenue company need to globalize and reduce the cost in order to improve its profitability. The industry need to utilise it assets were the company acquire from mergers and acquisition. Finally the company need to produce the material in the different countries to reduce it production costs and logistics cost in the end. Government drivers:The industry has benefit in the country where they have lib eral trade laws such as European Union who provides human resource and infrastructure facility compared to other parent company that run in Russia. Competitive drivers: The rapid development in environment shows the new level of competition in steel industry. The vision and mission of Severstal is to achieve it steel production across the globe. The report shows that Severstal is a 14th largest steel industry in world that produced 19. 2 million tonnes of steel in the world. However, mittal is the largest industry to produce 54. 4 million tonnes of steel in a year. case study Severstal). However, Severstal need to expand its business by implementing a strategy in the business that can help the company step by step to improve the market condition in the future. CURRENT STRATEGY: Severstal industry life cycle: https://www. google. co. uk/search? q=industry+life+cycle;hl=en;prmd=imvnsbz;tbm=isch;tbo=u;source=univ;sa=X;ei=bRgaUIbkHtK There are four stages of industry life cycle such as * Development: Severstal need to focus on development and innovation of product which help company to bring new technology and environment benefits.They should maintain the quality of the product. * Growth: Severstal need to maintain its business growth drivers such as vertical integration, cost advantages and strategic market focus. * Maturity: Severstal is one of the dominated steel industries in the market. However, they need to maintain position in US and Europe market to achieve maturity in the business. Although, china is existing market with less revenue that can become your main market in the future. * Decline: In 1990 steel industry was facing huge decline in their sales and production.However in 21th century steel industries are dominating the position in the world by acquire small industries for example mittal acquisition European steel company and Tata purchase other steel industry. Market segmentation: According to the market research the full vertical integration form give competitive advantage to Severstal, they need to keep strengthens the industry cyclicality market risk and provides flexibility and disruption allow us to capture the market opportunity. This vertical integration system helps company to improve financial performance in all three division of market.This vertical form also help to maintain the cost advantage and supply chain with high level of sufficiency, However, Severstal need focus on acquisition of small steel industry to acquire and develop the business in entire world. Target market: * Severstal need to target emerging markets such as Latin America, south east Asia, Africa and middle east * They need to secure their assets in fast growing steel markets. * Developing a new global raw material base will secure access to high potential market ensure its leading position and develop its expansion strategy for the company. Severstal need to target Chinese market and Asian market to develop their position in the world. Positioni ng: * Severstal need to maintain its position in Russia and North American market. However, their goal for 2012 is to improve EBITDA margin and despite many economic and industry challenges. * Our Intention is to keep global cost curve across all the operations and strengthen our market position. * They need to more focus on potential emerging market and high value added product which drive our margins to top position. SEVERSTAL ACQUISITION ACTIVITIESPortfolio matrices (BCG MATRIX): The most common portfolio analysis is Boston consulting group matrix which analysis the market share and market growth of the industry. This matrix show high growth demand heavy investment for example it show the excess capacity or develop brand. http://www. google. co. uk/imgres? hl=en;sa=X;biw=1280;bih=709;tbm=isch;prmd=imvnsb;tbnid=pBDs3BceOtFkAM:;imgrefurl=http://www. quickmba. com/strategy/matrix/bcg/;docid Stars: Europe, US and Russia has high market share for Severstal. Question marks: Chinese and Asian market.Cash cow: North American and Russian market is cash cow where Severstal can develop their market international by export steel in the world. Dogs: other countries like South Korea. Ansoff matrix: Ansoff matrix is a framework to proposed growth strategies for company to develop its business in future. Market penetration: * Severstal should maintain the focus on emerging markets such as Russia and north America * Russian market can increase its revenue in upcoming years. However, WTO has announced the upcoming winter Olympic Games in Sochi Russia which give additional opportunity to develop its market. They need to more focus on south East Asia, Africa, Middle East and Latin America where they got fastest growing steel market. Product development: * Severstal need to maintain the quality of product such as raw materials like iron ore, coking coal, scrap. * Severstal are targeting to expand access of raw material that could develop the strategically * Severstal need to mo re focus on gold business which can increase their revenue. Market development: * Severstal need to develop its market position in china and Asian market. * They need focus on high value added products and fast growing market. To maintain and maximise margins of the company, they should need to focus on steel related mining and steel production. * Target main market such as Russia to become no 1 in that market. Diversification: * Severstal need to concentrate more on their existing products such as wire ropes, metal ware and steel pipes. * Company need to maintain its stability in the market. STAKEHOLDER’S ANALYSIS: http://www. google. co. uk/imgres? start=95;hl=en;biw=1280;bih=709;tbm=isch;tbnid=YIubWJZV1827SM:;imgrefurl=http://intoprojects. om/how-to-identify-stakeholders;docid=gTtb0gkJERbD9M There are two types of stake holders they primary stakeholders and secondary stakeholders. Primary stakeholders: * Customers: customers are the key person for every company. Who want h igh value added product and good quality and better customer services. * Suppliers: supplier is a person who give raw materials and other products to company and want their payments on time * Employees: employees play vital role in every organisation, those are the people who perform good for the company and maintain the standard of the company.In order to achieve good salaries and benefit from the industry. * Shareholders: shareholders always want the industry to perform well in the market and achieve high revenue every year in order to get more dividend from the company. Secondary stakeholders: * Consumer group: consumer group has a responsibility to check the fairly and safety product are given to consumers. * Trade union: A trade union is a govt law that everyone has in their company. However this trade union assist the labour in any requirement and help them work in better environment. Pressure group: this group maintain the rules and regulation of the government on company law influence and regulation. * Government: Government are related with legislation, VAT, and taxation, low employment. * Community group: this community group includes all community such as jobs, contributions, ecological factors and share will comes under this group. * Media: media also play vital role for every industry in order to promote brand and create good relationship with customers and ongoing activity. Areas to conflict: Primary stakeholder: * Customer are not satisfied with the product and quality that are

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He was one of the most established freedom fighters during this time, looking for integration into a predominantly white driven American society. Furthermore he was helped by the work of his own group called the Southern Christian Leadership Conference (SCLC) [2]. However, others accommodate the opinion that Kings short-term influence was minimal, and he in fact did nothing to help the treatment of African Americans twenty years after his speech at the march on Washington. I believe that the most compelling argument that can be made for the short-term influence of MLK is the passing of the civil rights bill of 1964. President L. B. Johnson himself proclaimed the importance of Martin Luther King’s march on Washington in bringing about the civil rights act of ’64. When talking to MLK about his march and the civil rights bill, Johnson says, ‘’I think the greatest achievement in foreign policy – I said to a group yesterday – was the passing of the 1964 civil rights act. ’’ Johnson said this directly to MLK in order to make him recognise how much of an effect his march had upon changing employment law in the US. The civil rights bill of 1964 meant that employers were legally obligated to pick the best candidate for a job regardless of their colour, race or sex [3]. Before the bill was passed, black Americans found it increasingly hard to find employment due to employers discriminating them, causing sit ins and marches such as the one in Washington which made known the problems that they faced, to the world. This was one of the main reasons that the march on Washington took place, which shows on a political level, its major significance. The reliability of this source is very strong because it can be said that Johnson would have wanted to look sympathetic upon Black Americans in order to gain their support, and therefore would want to support their movements. The support of African Americans would have been significant for the 1964 presidential elections taking place on November 3th, which he won with one of the largest landslide victories in American history [4]. An account from a black American called Mr Manley, who participated in the March, further cements the idea that King had a great significance in passing the civil rights bill. It reads, ‘’I believe it electrified the country†¦we felt a warm surge of pride when Dr King addressed the crowds. ’’ Although it does not mention the civil rights bill, it talks of the effect that Kings ‘I have a dream’ speech had on spurring the civil rights movement on, ultimately putting pressure on congress. The source talks of electrifying the country, showing how there was almost an immediate significance of Kings Speech in the march on Washington, as does the quote from L. B. Johnson. This would have helped racial discrimination overall by effecting even those that were not Black Americans, which would have also played a big part in reducing overall racial discrimination due to that fact the majority of the American population where white. So by getting them to sympathise with the cause, more relevant changes such as the civil rights bill would have been made, proving how after the march on Washington, Kings short term significance was overwhelmingly obvious. Another way in which King short-term significance can be seen, is the way that he changed attitudes of people and organizations around America, particularly in Chicago with the Chicago real estate board. After a march in Chicago about the estate board opposing housing laws, they eventually changed their stance. An account from a Chicago tribune in November 1966 reads, ‘’the march led to an accord that year between the protesters and the Chicago real estate board. The board agreed to end its opposition to open-housing laws in exchange to an end in the demonstrations. ’’ The short term significance of the march on Washington can be seen here through the similar ways in which King and his march of 700 people carried out their protest [5]. They achieved the result that they ultimately where aiming for just as they did in Washington which demonstrates the effect that King had on changing rules around the north of America as well as the south. This source is reliable as it is stating facts of the event. It talks of how a once segregated organization had now become desegregated as a result, and therefore holds a great way in helping to make the judgement on whether or not king had short-term significance, in this case it shows how he did to a great extent. In contrast to this view, it can be said that King didn’t have a great significance after the march on Washington because, despite the influences that he had on changing laws, there were still great economic difficulties for Black Americans. Even King himself acknowledged that he had not changed anything about economic problems. Evidence can be found after the march in Watts, a friend of his called Bayard Rustin writes about what King said to him, ‘’you know Bayard, I worked hard to get these people the right to eat hamburgers, now I’ve got to do something†¦ to help them get the money to buy it. ’’ This highlights the main problem that King himself could not overcome. His march on Washington won them equal rights in work and employment however it couldn’t do anything about the unequal pay that Black Americans received. This became a big problem to him, as without money, what he had done for African Americans did not have as big a significance as it could have and meant that discrimination was still very much an issue. King further reiterated the problems that African Americans faced economically when he said, ‘’it is much easier to integrate lunch counters than it is to eradicate slums. It is much easier to guarantee the right to vote than it is to guarantee an annual income, minimal income and create jobs. ’’ This source strongly agrees with the first one, mainly because they are both from King but moreover it shows how he could not do anything to change the ongoing problem of a lack of money being earned by Black Americans. This therefore may show that his short term significance was minimal, although they still say how he has already made a change but just not one that helped them finically. The Georgia state representative from 1980 to the present day, Tyrone Brooks shared these concerns even decades after King identified them. ‘’we’ve won the battle for the right to vote, we’ve won the battle against segregation, we’ve won the battle to go to schools of our choice. But we have no won the battle in terms of money, the economic challenge’’ [6]. This only further implies that King couldn’t influence any economic change even later in the century. However, to say that because of this he didn’t have a great deal of significance is unfair due to the other greatly significant changes that King influenced such as the civil rights bill of 1964. By pressuring congress to pass that bill, he allowed the focus to be changed onto economic problems, which would not have mattered if they did not have equality within the work place. Which on the other hand shows how MLK did have a great significance after the March. Despite the significance that King did have, it must be noted that he also failed to change the views of some more radically thinking Americans, which points to him having less of significance after his March. In an account from the Chicago tribune newspaper, they talk of the civil rights movement being futile. ‘’The ‘civil rights’ marchers are only hurting themselves and their cause. Chicago is retrogressing to the condition of a frontier town in early days, where shots are fired in the air and challenges to combat are hurled. ’’ It is clear to see that from what this source is saying; Kings Influence certainly did not have an effect on Chicago. However, in Chicago King achieved an accord between the Chicago real estate boards. They agreed to end their opposition of new housing laws, which calls in to question the reliability of this source largely in using it as evidence against the significance of King after the march on Washington. The population of Chicago had intended to give King a hostile reception before even arrived. This point is backed up and relived in an article on the daily Kos. It reads, ‘’ When rumours circulated that Dr. King was to lead a march up the middle of the expressway these raging groups literally packed bags with rocks to hurl from overpasses or side streets on to the marchers’’[7]. Although this reiterates the point that King failed to make an immediate impact of those from Chicago, it also makes it clear that the previous source from the Chicago tribune is not reliable. It is obvious from this that the mood in Chicago before King even entered was one of hostility, so it is no surprise the local newspaper did not support him either. This source is from an article written by someone that sympathises with king greatly as he goes onto say, ‘’If this was manhood, I was in no hurry to join them. ’’ This shows that he still had significance ad influence on views of people from the racist areas, as this person disagreed with those that opposed MLKs visit. In conclusion, I believe that King had a great deal of short-term significance after his march on Washington. The most compelling bit of evidence that points to this view is the impact he had on passing the civil rights bill of 1964. The nationwide impact was made clear after his death, when in a speech Robert Kennedy said, ‘’ Or we can make an effort, as Martin Luther King did, to understand and to comprehend, and to replace that violence, that stain of bloodshed that has spread across our land, with an effort to understand with compassion and love’’[8]. This underlines the significance of King as such a well renowned figure was encouraging the country to follow in his footsteps, which could be said, is the reason why even more was achieved after his death. As well as the civil rights bill, he also changed the attitudes of some people, which in turn gave him, and the movement more support in order to go on and fight for equality. Therefore, it is impossible to say he had nothing but an incredible influential and significant legacy after the march, which paved the way for future movements and laws to be established. [1]. http://www.infoplease. com/spot/marchonwashington. html [2]. http://www. britannica. com/biography/Martin-Luther-King-Jr [3]. http://www. archives. gov/education/lessons/civil-rights-act/ [4]. http://www. britannica. com/event/United-States-presidential-election-of-1964 [5]. http://www. chicagotribune. com/news/nationworld/politics/chi-chicagodays-martinlutherking-story-story. html [6]. https://www. doi. gov/pmb/eeo/AA-HM [7]. http://www. dailykos. com/story/2014/1/17/1270338/-Chicago-Summers-1966-67-Grown-Wary-and-Weary-of-Racism [8]. http://www. powerfulwords. info/speeches/John_F_Kennedy/8. htm

Impact of Positive Thinking

Impact of Positive Thinking All our thoughts, emotions, the feelings experienced by us daily, one way or another affect our body. It is known that different intense thoughts and mood changes can change the chemical composition of blood. Negative thoughts lower the efficiency of the organism. When a person is depressed for a long time, bad mood central nervous system begins to send signals to organs in order to decrease an activity. The work of the body begins to inhibit. The irritation, aggression and resentment are disastrous for the organism; it gradually poisons a person from inside. Such emotions shouldnt be developed in a person, otherwise, they can kill him or make sick (Anthony, 135). What can contribute to recovery and preservation of good health? Of course, it is positive thinking. Positive thinking is a special storehouse consciousness, the ability to control the own mind. It is believed that if a man can control his mind, he can control his life. Not accidentally, many sages say that your world is a reflection of mans thoughts. If you are afraid of life, you will for sure have some problems. Once you are oriented on the path of joy, prosperity, happiness, your life is changing for the better. The topic of positive thinking was studied by many people. Here are some of their thoughts. Positive thinking is very important for everyone; it can change the life for better. Richard Bach in Illusions said: In your life all the people appear and things happen just because you invited them there. And what would you do with them depends on your own your decision (Hansard, 84). The law of faith says: Everything that you really believe in is becoming a reality for you (Quilliam, 14). The law of expectations says: Everything you expect with full will come true. In other words, you do not necessarily get what you want, but get what you expect. People should develop the habit of positive expectations and they will be amazed at the influence it will have on them and the people around (Quilliam, 16). The law of gravity says: You are a living magnet; you always attract people, ideas and circumstances that harmonize with your main ideas. One of the most important habits in this regard, is a habit to fill the consciousness of a positive picture of your life and the world. The final law is the law of correspondence: Your outer world is an accurate reflection of your inner world. It means that people get what they think most of the time. Brian Tracy who wrote The habits for millions of dollars is sure that every person creates his own world, his life and his thoughts, feelings and emotions. Our action begins not with the word or the movement, but with our thoughts. The energy of human thought is quite material. The energy of thoughts is not closed in the human brain; it is spread in space and interacts with the surrounding energy field. (Peale, 300). John Gray (author of Men Are from Mars, Women Are from Venus) in his book A Practical Manual for fulfillment of desires, writes: The secret of how to get what you want and love what you have is an ability to be happy , loving, confident and calm, regardless of the external circumstances. In order to find the happiness, you need to make small but important changes in your thinking. The first place should be given not to achievement of financial prosperity, but personal success (Anthony, 136). The power of thinking is the greatest power on the earth as well as on the heaven. We get what we think about. By submitting a thinking process on positive, the person can evolve to incredible heights. Conversely, if the human mind is directed toward the negative, then that person can degrade up to the pitiful condition. The positive thinking means the possession of such intelligence, which is not immune to the influence of anger, hatred, greed and other negative thoughts. The brain, which is busy with joyful and kind thoughts, which is ready to forgive and forget, to create harmony and promote peace is called a positive mind. The mind has a profound direct effect on the nervous system and the entire human body. Indirectly, it affects all that surrounds us (Peale, 302). The power of positive thinking is really great; it often plays a decisive role in the treatment of depression and many chronic diseases and is unnecessarily underestimated by most patients. Thus, the famous American writer Norman Cousins suffered from extremely severe disease deformans spondylosis. Doctors gave him 1 chance of 500 for recovery. And he was prepared to die. But one day someone gave him a book about the power of positive thinking, and he thought: My thoughts were always negative. For all my life I thought that I am supposed to die or that I am disabled. But if I think that I can recover, then I can manage it! From the moment he started to look for a way to get rid of the severe depression that had gripped his mind. And he discovered the laugh. He bought dozens of comic books and asked the nurse to read them to him for several hours a day. A few days later he discovered that a good few minutes of laugh allowed him to feel so good that he could sleep without pain within two hours. Less than one year of laughter therapy he rose from his bed free from pain and full of energy. He started to play tennis, golf and even began to play the piano. Later he wrote a book, which became a bestseller Anatomy of Diseases. This example proves that positive thinking can cure diseases (Ellin, 2009). Positive thinking is a powerful force, which plays an important role in the formation of life. The essence of such thinking is based on the psychological techniques, thanks to which thoughts, words and images that promote internal development and success are formed in the mind. All that happens on a subconscious level is possible to control. This thinking is aimed at achievement of a positive outcome. Here is an advice for people who feel lack of positive thinking. In order the power of thought worked for you, you need to develop a positive attitude to life. You should expect only the successful outcome in all situations. You should have the internal psychological disposition to succeed (Peale, 78). Positive thinking plays a great role in our life. As it was mentioned above, the idea of positive thinking is to restructure the perceptions so that any problem or negative situation was accepted as a kind of benefit or incentive for life, for fight for new actions. The methods of positive thinking are now used in many spheres, at work, while communicating with colleagues, or resolving conflict situations (Ventrella, 45). This method works and is sufficiently effective. If you think positively, it could change your life for the better!!!

Nikes CSR Policy Ethical Issues and Dilemmas

Nikes CSR Policy Ethical Issues and Dilemmas NIKE – ETHICAL ISSUES AND DILEMMAS INTRODUCTION Nike has been dodging accusations of employing people in the developing and under-developed economies, at low wages and poor working conditions for a considerable period of time. Having tried course correction and public relations as a measure to salvage the bad image generated by the sweatshops that Nike is accused of running, Nike has undertaken massive efforts to overcome these hurdles. Herein we will analyze Nike’s international business operations with a critical eye over the ethical issues and dilemmas that this organization has faced while manufacturing its goods in foreign lands. PROBLEM AREAS There are a number of areas that are seen as weak points or links in this Nike case. We shall first highlight the problem areas and then dive into the ethical theories that are supposed to govern them. According to the Wikipedia dictionary, ethics is defined as a general term for the science of morality.[1] While this branch of study can be further sub-divided into various categories, we have to remember that what is appropriate in a given situation may not be so among different circumstances and the decision of right or wrong is relative to its surroundings. Elaborated here are the issues and problems that stand out due to their ethical nature as issues or dilemmas faced by Nike and its operations towards its employees and customers as mentioned in the case study: Poor Working Conditions – In Nike factories, the laborers were provided with poor working conditions that were certainly below the norms accepted in the developed world. While lower standards of living may apply in the countries that have Nike factory contracts, the inhumanity of these conditions drives attention to Nike’s responsibility towards its employees. Considerable overtime and long working hours had to be endured by Nike employees desperate to remain employed in their country. An example states that Nike factory workers in Korea had to work for seventeen straight hours in silence. This indicates almost barbaric behavior on Nike’s part towards workers in these conditions. Low Wages – Nike contracts with companies to do all of their manufacturing in developing or under-developed countries. While the wage levels there are lower than the ones in developed nations, Nike still fails to employ people at a rate that can sustain their basic needs. The wages provided are much lower than the wages needed and as such cheap labor is thoroughly exploited. Nike has attempted at correcting the problem and employing people at a rate at least equal to the minimum wages prescribed in the country. Child Labor – Child labor laws in many countries are overlooked by Nike and children as young as 12 and 13 years of age are made to work long hours and treacherous conditions. Nike has taken steps to meet the starting age limit subsequently. Operations in Countries with Union Restrictions – Nike has been known to set manufacturing efforts in countries like Indonesia and China that prohibit union operations. This leads to lack of revolt and protests that leave the employees with little choice regarding work conditions and wages. Ethically, it is hard to argue against these countries as their laws do not have provisions for employment governance. In fact these countries often do not have minimum wage requirements and abundant labor is put to use by companies like Nike for the absolute minimum. Expensive Endorsements – While Nike has been continuously targeted by human rights committees, they have unceasingly maintained a high profile image by getting celebrities like Michael Jordan and Tiger Woods to endorse their products. Over five years, Tiger Woods is expected to earn 80-90 million US dollars of Nike money.[2] Ethically it would have been more beneficial to engage a part of that money in Nike factory and employee enrichment. Expensive Products – Nike sells its products at steep prices, while we all know that the products are manufactured in contracted factories on foreign lands for low costs. The cost of production being low leads Nike to generate massive profits from the sales revenues. Cover-up Public Relations Efforts – Being involved in child labor initiatives was undertaken by Nike to handle the issue at large and also to rectify the public relations pitch for Nike. The actual problem is being pointed out as adequate wages problem as opposed to the child labor initiatives that seem like a cover up for the bigger issues plaguing Nike. Lack of Development Work at Factory Locations – While one constantly hears stories of sweatshops and defense by Nike regarding its work force problems, one rarely hears of philanthropic activities adopted by Nike in the area of the factory location. For example, at Hershey, PA one hears of the development the company Hershey’s has done for the community. Likewise it reflects as selfish behavior from Nike in not supporting the causes faced by the community occupying Nike’s workforce. Health Hazards in Factories – Skin and breathing problems are observed in factories that makes Nike products. Nike has to make sure that it performs by the standards set by OSHO in protecting employees from hazardous chemicals and processes in the manufacturing cycle. ETHICAL THEORIES Ethical theories can help rationalize certain decisions that Nike has made as a company and highlight the issues pertaining to its followed consequences. Let us now examine some ethics theories and observe the case of Nike in this light.[3] Egoism – This theory states that individuals or corporations have a right to guide their conduct placing ones own interest foremost in rational decisions. Through this theory one can justify the placement of profits or revenue generation as the high attained goal of an entity. In this regards Nike has played to the theory as far as possible. They have not only conducted manufacturing with cheap labor but also ensured that the factories do not earn even a little extra than they were supposed to. This theory states that every person that promotes self interest bring about social good. In this context we could see that while the founder of Nike, Phil Knight performed with self interest in mind, he was propelling Nike ahead by huge proportions. Doing so, he did manage to bring about the rise of one of the most well known brands in the world today. Social Group Perspective – It is not only self that determines all decisions but the surrounding that forms the social group under which the individual or company resides. It is the norm or standard in social groups wherein an entity can determine the wrong or right in that particular case. For Nike this social group has become a collection of customers, shareholders, employees, foreign contractors and others. The perception of right and wrong is determined by these social groups that operate differently in different places. For example, while the minimum wage in Indonesia, Korea and China may be less that that in the United States of America, the standard of living there will meet the minimum wage requirements and Nike has to ensure that they abide by that. Cultural Relativism – Every country has its unique culture that accompanies it. For Nike, a company that has a presence in many countries in the world, minding the cultural relevance can prove to be an effective means to growth. For example, while bribes are seen as a cultural norm in some countries, they are seen as unlawful in certain other countries. Society as a whole in certain countries is known to consider bribes as a normal occurrence, which for some countries is a crime. This culture makes or breaks certain laws in place and as long as Nike abides by these laws, in the respective country, and at the same time minds its home country standards, controversy for Nike will be minimized. Utilitarianism – This theory works under the premise that the greatest good is for the greatest number. Herein it is the majority that counts above anything else. If only a few elements of the entity think that the decision is wrong, the decisions must be right which is what is said by the majority. In the case of Nike, the decisions that were enforced by the majority are responsible for the sustained controversy surrounding it. The board obviously took certain steps in clearing the controversies that have affected the company. Since these decisions are taken with the view of the company good in mind, with the majority of the people agreeing to it, the decision must be seemed as right. Deontological Perspective – This view goes by the saying ‘do unto others as you would have them do unto you.’ The duty to make this world a better place is a duty that one has to take upon themselves, besides following certain obligations. For example, telling the truth is an obligation and that is seen as ‘right.’ In the same way for corporations, it is the giving back in return concept that needs to be perfected. The corporation is obliged to provide a good product and it is entitled to bring positive changes to its constituents. Values Clarification[4] This ethical theory expects that one is familiar with ones own views, reasoning and rationale. It is for this reason that companies try to build cultures within the organization in the same way that Nike has evolved its corporate culture. Nike’s branding, products and apparel indicate its image and success. ETHICAL DILEMMAS Nike has faced ethical dilemmas in operations and manufacturing for a while now. The definition of ethical dilemma states that it is a situation wherein exists conflicts between moral imperatives and choosing one situation consequence over another can lead to compromising of what also seemed like a viable solution in the situation[5]. Let us go over the ethical dilemmas that Nike has faced over its functioning. Manufacturing Ownership – Nike chooses to contract its manufacturing to factories in foreign lands where the wages and conditions do not meet developed nation’s standards. Yet they have their products made there at low costs after enforcing their product controls. While they could manufacture these products in the United States of America, profitability of these products wins over providing the home country with employment and opportunities in the manufacturing segment. Advertising Budgets – Nike has endorsed many athletes and celebrities like Tiger Woods and Michael Jordan paying them exorbitant amounts of money. While the brand has succeeded in maintaining an image of athleticism, it has compromised on how the money could have been used to better serve the country where they have their factories. Public Relations – Nike has had to go lengths to protect its public image and had to employ many legal experts and public relations individuals. The dilemma occurs when Nike may have to admit to its mistakes but doing so would cost them greatly, hence the truth may have to be manipulated and then disclosed, which does not conform to ethical standards. Employee Enrichment – With the profits that Nike generated from manufacturing products in foreign countries at low costs, a dilemma in front of them can arise from the fact that even if the country’s wage and standards are met they fall way below the US standards. While Nike can invest in employee welfare, it is not a norm in the country that runs their factories. Besides a lot of these factories are contracted to do Nike manufacturing and Nike as such is not obligated to conduct factory and employee welfare. CONCLUSION While Nike has faced severe criticism due to its manufacturing decisions, it as a brand and product has fought and sustained its success. Ethics experts will continue to question Nike in unfavorable ways, however when we apply the ethical theories that have relevance in the business world, we observe that Nike does its best to meet the requirements. This is especially evident when Nike made decisions to conduct independent audits and engage in human rights activities. On the other hand Nike faces ethical dilemmas due to its operations and these dilemmas will continue to exist in the world economy. Nike has gone with the route of foreign contracting in its earlier phase and has received tremendous criticism through it. Faced with its plenty of ethical dilemmas, Nike has managed to sustain the product, develop new products and continue to be a force to reckon with as a consumer brand. [1] http://en.wikipedia.org/wiki/Ethics [2] http://www.golftoday.co.uk/news/yeartodate/news99/woods12.html [3] http://www.mgmtguru.com/mgt499/TN2_PAGE3.htm [4]http://64.233.187.104/search?q=cache:ofLIUDDIiW0J:jan.ucc.nau.edu/~dgs2/theories.pdf+theories+in+ethicshl=en [5] www.ethicsscoreboard.com

A Prequel to Susan Glaspells Short Story, Trifles :: Short Story Creative Writing Essays

A Prequel to Susan Glaspell's Short Story, "Trifles" Minnie Foster was once described as the belle of the ball. To look at her tonight for the first time you could see why. She carried herself with both an air of confidence and modesty at the same time. Her small eyes dominated her face. They did not look directly at you anymore though. Still, they seemed all knowing and experienced as if they were able to see and know secrets about you that you wish no one knew. Her slender peaked nose was no match for the full lips she had, lips that never uttered a sound and which have become as pale as her knuckles. Her lips were pierced shut protecting the thoughts in her head from falling out one by one to the hard flooring. This morning Minnie felt a little different. No one was home. No one was there to bother her. Why then, did she feel the need to continue on like a caged animal within her own home? She cautiously continued down from the upstairs. Minnie’s right foot led the way and paused on each step. Like a young child first learning to master the staircase she would wait for her left foot to catch up before leading again with her right. Her feet glided lightly across the wooden steps and only the dust particles felt her movement. She seemed to have a pillow of air floating underneath her. Quite ironically, with each descending stride her body took, her hand would tightly grip the banister until her veins were crushed against her tightened skin with no way out. Gliding over to the kitchen, Minnie continued with her everyday tasks. She began by clearing the table, a task that should have been completed the night before but was left untouched. She put things away one by one and in a quiet manner. She lightly opened and shut the cupboards, placing pots and pans where they belonged, one by one, straight from the table to under the sink. It was cold in that kitchen. Minnie looked out the window to her neighbor’s house. Perhaps today she would go visit; perhaps today she would not.

Graduation Speech -- Graduation Speech, Commencement Address

Psalm 25:9: "The humble He guides in justice, And the humble He teaches His way." Good evening ladies and gentlemen, faculty and staff, family, honored guests, and fellow students. Thank you for coming to our graduation services this evening. My name is Rebekah Hoad and I am the Valedictorian for the graduating class of 2006. I am honored and blessed to be the messenger of years gone by and the inspiration of years to come. This is not only a time to receive a diploma but it is an opportunity to celebrate our lives. A time that represents our past childhood and passage into adulthood. As we embark on life's journey, remember to build on the foundation laid by our parents and teachers. Apply what we have learned and embrace God's love to strive for spiritual maturity. For me, the years have gone by faster than I could ever have imagined. I can still remember walking into my first grade classroom, my very first day at Caleb Christian School. Mrs. Cusic was my teacher and I recall her telling me several times that I was not the teacher. Over the years our school has changed. Teach...

World War Two After the Depression :: WWII World War 2 Essays

During 1940 depression weary Americans hoped that the new decade would bring better days than the previous one. War swept Europe and Asia. People began to wonder whether when war rumours began to flood the newspapers. People tried to ignore the war by going to movies, watching sports, and listening to music. By mid 1940 war was no longer possible to pretend. The time had come for citizens and representatives in Washington to take charge in the nation's course. Isolationists wanted to stay out of the war. Many small town people and rural flks wanted nothign to do with Europes affairs. The debate came down to whether or not the nation was ready or not to go to war. Americans grasped hope that a volunteer army would be more than enough for the troubled times to come. Army Chief of Staff George Marshall didn't agree. He said, "paper plans no longer will suffice. The security of our country depends on more trained men. There is no other way to do it." When Hitler took France Americans started to listen to what Churchill had to say as he was broadcasted over radios across the United States. The time came for the nation to take its course. The Selective Training and Service Act was passed September 19, 1940, by almost two-to-one margin in both houses of Congress. Two days later at the White House Roosevelt approved the act. The United States now had to take action. The nation would require its citizens to learn the art of self-defense in peacetime. The draft brought in men that were citizens of the United States and resident aliens. No more than 900,000 of them could be drafted during peacetime. The first big step in all of this was held on October 16, 1940, a day to be known as Registration Day. There were 125,000 registration centers across the nation. Here the young men came to enlist in the Army. On registration day Uncle Same brought in 16,500,000 men in one way or another. These men were the new defenders of the United States. Registration Day was only a day to lead up to the draft. The actual draft took place on Octobor 29, 1940. When the men registered across the nation they were given a number between one and 8,500. The first number to be called on the day of the draft was 158.

Primordial Sound Meditation Essay

Donna Miesbach opens the lecture asking if anyone participates in meditation. Her knowledge begins for her at the age of 17. The passion she emits when teaching primordial sound meditation is evident with the discussion she leads. Informative about Dr. Deepka Chopa making the Vedic tradition of India available and able to read to many people. Bringing meditation back into society. Meditation can be described as entering a state of complete awareness. Meditation is about oneself; you with your mind. A place you can fulfill your purpose, get in tune with your soul, no stress, anxiety or fear. Meditation relieves stress and helps to remember self wholeness. It rejuvenates the cells to wake up, relaxes the physical, mental and energy body, introduces serenity, bliss and clarity all while bringing balance to every area of life. Meditation is stated as a three step process. The basis starts with our state of mind.; many thoughts stimulate and stress our emotional, mental, energy and physical bodies. The â€Å"meditation station† describes the normal state of mind of not being normal but abnormal with effects of receiving sensory stimuli that react in uncontrolled ways. Also that our thoughts can be opposing of each other, thoughts that bring warm, cuddly, relaxed emotions can also initiate fear, anxiety and paranoia. A tool used to transition thru meditation is Mantra, defined as â€Å"man=mind† and â€Å"tra=instrument† so as a whole † Instrument of the mind† The first step of meditation is gaining control over our mind, to concentrate. All effects are directly or indirectly in all areas of the body and mind. Concentration derived from the Latin words â€Å"To† † Center or fixed center point† offers mental influence and mental imaging, looking at the word as a whole can be further defined as † bring to a common point.† and the â€Å"act or state of bringing to a fixed point or focus†. With concentration you are bringing the highest forms of energy, power and forces to a focus point , keeping it from dissolving over multiple areas. Focused concentration can be difficult to achieve with current lifestyle, duties of family, work, school, schedules, appointments all correlate to keep the mind restless. With the obstacles of swirling thoughts, applying the control of voluntary attention and exercising self will are key to facilitate ones control of attention and will . Practicing paying attention to concentration, you gain the experience to exercise your will to just be witness to any distracting thoughts that populate; instead of using imagination or daydreams in lieu of concentrating on the object of your meditation. So primarily the goal in the first area of meditation is to concentrate, provide un forced attention and focus on one object whether it’s a personalized mantra, a saying, chant or actual object. The next step instructed is mind and body connection and silencing of the mind best known as Meditation. In meditation the attention is unbroken, effortless, a steady flow of concentration. The focused attention is also applied to the object of meditation and the state of meditation that initiates deeper and deeper concentration which then proclaims true knowledge, universal awareness and can begin to restore balance. You become connected to feelings, sensations and everything connected to that object. Best quoted is Albert Einstein † Everything in the universe is relative to everything else† This deep concentration and connection ultimately brings your meditation to connect you to everything; uniting your object and your mind. The final step of meditation occurs in the state of contemplation and ultimate consciousness. The experience of not being conscious of just our body and thoughts but being part of the universe and cosmos. Some imply it is a birthright and destiny to attune to this state of realization, truth, consciousness and bliss. You become connected to the universe as it is connected to you in a simple, spontaneous action. Nothing is forced, what happens is what is supposed to happen. Meditation takes practice. Overall patience and understanding to accomplish the deepest form of meditation requires you to have the abilities of focusing on an object, reject unwanted/unwarranted thoughts not related to the object, promoting the power to controlled thoughts, the capacity to stop them, comprehension to separate ones self from thoughts, and all is done to master and achieve a silent mind. This deep state of meditation refers to the silent mind as a powerful experience. A silent mind is related to being alert and sensitive to surroundings, compassionate towards others, removing harmful notions from the mind, judgments, rejection, hatred, anger, jealousy and any thought process that is implying one of being wrapped in ones own confusions. Primordial sound mediation is best explained as a healing practice. Experience inner peace and it reminds oneself of our essence, improves inspiration, compassion, love, health, enthusiasm and creativity in daily living and relations. Primordial sounds consist of basic, essential sounds and vibrations from nature. Mantras are primordial sounds that are depicted from the Vedic mathematics, which determine the exact sound or vibrations developed using the date, time and location of a persons birth. If used correctly to influence the quieting of the mind, you can fall into meditation easier and faster. The mantra guides you from levels of clustered thought activities, to complete silence. You are no longer affected by internal commotion and are able to in-tune to true, and peaceful awareness of the universe. This allows the mind, physical body and energy network that supports and sustains the physical body ability to function at maximum effectiveness. Mantra deepens meditation, it blesses our lives with the universe ,provides true knowledgeable wealth of the soul, gives a roadmap to heightened awareness and clears, relaxes, and rejuvenates the body.. There are many types, forms and ways of meditation. All meditation types possess the ability to restore physical, mental and emotional self well being. The fact that we use roughly 5% of our minds substantiates the importance of relaxing beyond the busyness and ciaos. Other meditation can include walking, simple, mindfulness, journey, vibrational and central channel meditation, all techniques allow anyone to incorporate and fit into their lifestyle. The tasks of the present day insist that people are more human doings with the constant feeling of needing to be doing something or going somewhere, always doing. We need to be referring to ourselves as â€Å"human beings† so it incorporates the importance of attention, concentration, self peace and we are just beings; here to be!

Econ 510 Exam 1 Study Guide

Intermed Micro Exam 1 Chapter 1 (Powerpoint Slides) Economics- Unlimited wants and limited resources Microeconomics- Branch of economics that deals with the behavior of individual economic units. Units such as, consumers, firms, workers, and investors, as well as the markets that these units comprise. Macroeconomics- Branch of economics that deals with aggregate economic variables. Such as the level and growth rate of national output, interest rates, unemployment, and inflation. Micro Economics is a story of trade-offs that consumers, workers & firms face and shows how these trade-offs are best made.Key Players – Consumers, Workers, Firms Trade offs for Consumers: Limited Incomes – To save or to spend. If save then for HOW LONG and of-course HOW MUCH If spend then on WHAT and HOW MUCH This gives birth to the CONSUMER THEORY, which talks about the preferences, choices, utility etc. Trade offs for Workers: Time: Leisure Vs. Labor Whether and when to enter the work forceâ € ¦. Pay scale is dependent on education Choice of employment: Risky but high paying VS safe but less money Trade offs for Firms: What to produce? How much to produce? Example: Any company in the world would love to produce everything and reap profits but can’t do it.Central planned economy- Prices are set by the gov’t In a market economy- Prices are determined by the interactions of consumers, workers, and firms. These interactions occur in markets—collections of buyers and sellers that together determine the price of a good. In economics, EXPLANATION and PREDICTION are based on theories and models. Theories- are developed to explain observed phenomena in terms of a set of basic rules and assumptions. Model – is a mathematical representation, based on economic theory, of a firm, a market, and some other entity.Positive Analysis – describing relationships of cause and effect. Normative Analysis – Analysis examining questions of what ought to be. Competitive Market – market with MANY buyers and sellers trading identical products so that each buyer and seller is a price taker. Non-Competitive Market – Seller or buyer can influence the prices Market Boundary – GEOGRAPHICAL and RANGE of products Why is boundary important? To get to know about actual and potential competitors and its helpful in making Public plicies. Example: Pain Killers REAL Vs. NOMINAL pricesNominal price – Absolute price of a good, UNADJUSTED for inflation Real Price – Price of a good relative to an aggregate measure of prices; price ADJUSTED for inflation Consumer Price Index – Measure of the aggregate price level. Producer Price Index – Measure of the aggregate price level for INTERMEDIATE products and WHOLESALE goods. REAL vs. NOMINAL pricing The real price of eggs in 1970 dollars is calculated as follows: The real price of eggs in 1970 dollars is calculated as follows: The real price of eggs in 1990 dollars is calculated as follows: Public Policy – * Great impact on Economics * Can change course of the marketChapter 2 (Powerpoint Slides) Supply Curve – Relationship between the quantity of a good that producers are willing to sell and the price of the good The Supply curve is upward slopping: The higher the price, the more firms are able and willing to produce and sell. If production costs fall, firms can produce the same quantity at a lower price of a larger quantity at the same price. The supply curve then shifts to the right. Insert Graph by hand: The Supply Curve – is thus a relationship between the quantity supplied and the price. We can write this relation as an equation: QS = QS(P) Other Variable That Affect Supply are:Production costs, including wages, interest charges, and the costs of raw materials. When production costs decrease, output increases no matter what the market price happens to be. The entire supply curve thus shifts to the right. Chan ge in supply or Shifts in the supply curve Vs Change in the quantity supplied or Movements along the supply curve. The Demand Curve – Relationship between the quantity of a good that consumers are willing to buy and the price of the good. Equation can be written: QD = QD(P) Insert Graph by hand: A higher demand curve shifts the demand curve to the right. Downward Sloping) Shifting the Demand Curve – If the market price were held constant at P1, we would expect to see an increase in the quantity demanded—say from Q1 to Q2, as a result of consumers’ higher incomes. Because this increase would occur no matter what the market price, the result would be a shift to the right of the entire demand curve. Insert Graph by hand: Shifting the Demand Curve Substitutes – Two goods for which an increase in the price of one leads to an increase in the quantity demanded of the other. Complements – Two goods for which an increase in the price of one leads to a decrease in the quantity demanded of the other.THE MARKET MECHANISM The market clears at price P0 and quantity Q0. At the higher price P1, a surplus develops, so price falls. At the lower price P2, there is a shortage, so price is bid up. Insert Graph by hand: Equilibrium (aka market clearing) price – Price that equates the quantity supplied to the quantity demanded. Market Mechanism- Tendency in a free market for price to change until the market clears. Surplus – Situation in which the quantity supplied exceeds the quantity demanded. Shortage – Situation in which the quantity demanded exceeds the quantity supplied. CHANGES IN MARKET EQUILIBRIUMNew Equilibrium following Shift in Supply When the supply curve shifts to the right, the market clears at a lower price P3 and a larger quantity Q3. Insert Graph by hand: New Equilibrium following Shift in Demand When the demand curve shifts to the right, the market clears at a higher price P3 and a larger quantity Q3. Insert Graph by hand: New Equilibrium following Shifts in Supply and Demand Supply and demand curves shift over time as market conditions change. In this example, rightward shifts of the supply and demand curves lead to a slightly higher price and a much larger quantity.In general, changes in price and quantity depend on the amount by which each curve shifts and the shape of each curve. Insert Graph by hand: From 1970 to 2007, the real (constant-dollar) price of eggs fell by 49 percent, while the real price of a college education rose by 105 percent. What are the possible reasons for such a sharp change : The mechanization of poultry farms sharply reduced the cost of producing eggs coupled with sharp decline in demand for eggs shifted by health-conscious population who tended to avoid eggs.As for college, increases in the costs of equipping and maintaining modern classrooms, laboratories, and libraries, along with increases in faculty salaries, pushed the supply curve up. Demand for college increased as a larger percentage of a growing number of high school graduates decided that a college education was essential & paying. Market for Eggs The supply curve for eggs shifted downward as production costs fell; the demand curve shifted to the left as consumer preferences changed. As a result, the real price of eggs fell sharply and egg consumption rose. Insert Graph by hand: Market for College EducationThe supply curve for a college education shifted up as the costs of equipment, maintenance, and staffing rose. The demand curve shifted to the right as a growing number of high school graduates desired a college education. As a result, both price and enrollments rose sharply. Insert Graph by hand: Supply and Demand for New York City Office Space Following 9/11 the supply curve shifted to the left, but the demand curve also shifted to the left, so that the average rental price fell. Insert Graph by hand: Elasticity – Percentage change in one variable resulting from a 1% increase in another.Price Elasticity of Demand – Percentage change in quantity demanded of a good resulting from a 1% increase in its price. Linear Demand Curve – Demand curve that is a STRAIGHT LINE. Linear Demand Curve The price elasticity of demand depends not only on the slope of the demand curve but also on the price and quantity. The elasticity, therefore, varies along the curve as price and quantity change. Slope is constant for this linear demand curve. Near the top, because price is high and quantity is small, the elasticity is large in magnitude. The elasticity becomes smaller as we move down the curve.Insert Graph by hand: Infinitely Elastic Demand – Principle that consumers will buy as much of a good as they can get at a single price, but for any higher price the quantity demanded drops to zero, while for any lower price the quantity demanded increases without limit. a. ) For a horizontal demand curve, ? Q/? P is infinite. Because a tiny ch ange in price leads to an enormous change in demand, the elasticity of demand is infinite. Insert Graph by hand: Completely Inelastic Demand – Principle that consumers will buy a fixed quantity of a good regardless of its price. b. For a vertical demand curve, ? Q/? P is zero. Because the quantity demanded is the same no matter what the price, the elasticity of demand is zero. Insert Graph by hand: Other Demand Elasticities Income Elasticity of Demand – Percentage change in the quantity demanded resulting from a 1% increase in income. Cross-Price Elasticity of Demand – Percentage change in the quantity demanded of one good resulting from a 1% increase in the price of another. Elasticities of Supply Price Elasticity of Supply – Percentage change in quantity supplied resulting from a 1% increase in price.SHORT-RUN vs LONG-RUN ELASTICITIES Demand Gasoline: Short-Run and Long-Run Demand Curves a. ) In the short run, an increase in price has only a small effec t on the quantity of gasoline demanded. Motorists may drive less, but they will not change the kinds of cars they are driving overnight. In the longer run, however, because they will shift to smaller and more fuel-efficient cars, the effect of the price increase will be larger. Demand, therefore, is more elastic in the long run than in the short run. Insert Graph by hand:

Personnel Management Research in Agribusiness

Personnel Management Research in Agribusiness Vera Bitsch Department of Agricultural, Food, and Resource Economics Michigan State University, 306 Agriculture Hall, East Lansing, Michigan, 48824 Tel: +517-353-9192, Fax: +517-432-1800, [email  protected] edu Paper presented at the 19th Annual World Forum and Symposium of the International Food and Agribusiness Management Association, Budapest, Hungary, June 20-23, 2009 Acknowledgements This study was supported by the USDA Cooperative State Research, Education and Extension Service, Hatch project #0191628. The author would also like to thank the Elton R.Smith Chair in Food & Agricultural Policy at Michigan State University for supporting the participation at the IFAMA World Forum and Symposium. Copyright 2009 by Vera Bitsch. All rights reserved. Readers may make verbatim copies of this document for non-commercial purposes by any means, provided that this copyright notice appears on all such copies. Personnel Management Research in Agr ibusiness (Executive Summary) One of the challenges faced by agribusinesses in the 21st century is the attraction, motivation, and retention of sufficient and qualified labor.However, personnel management research has mostly focused on other industries. Accordingly, agribusiness managers have little to rely on, when developing personnel policies and procedures. Once a business has grown beyond the labor capacity of the immediate family, personnel management becomes an issue and practices developed for large corporations do not always scale down well to smaller businesses or may not fit the agribusiness environment. This paper reviews the foci and results of personnel management research in the United States and in Canada, but results are likely applicable beyond these two countries.The analysis concentrates on publications analyzing personnel management publications, largely excluding labor market, immigration, and similar analyses. The unit of analysis is the business, not the mark et, society, or other institution. The review covers agribusiness and agricultural economics journals, and also animal science and horticultural science journals. Research reports and conference papers are included when accessible. With few exceptions, personnel management was virtually absent from agribusiness and agricultural economics research before 1990.Since then research methods cover the full range from in-depth, unstructured interviews and group discussions, through interview or moderator guide based approaches, up to fully structured surveys. Several broadly based results are emerging. First, many agribusiness managers perceive their personnel management competencies as a weakness, in particular during periods of organizational growth. Second, experienced managers typically have an adequate conceptual frame of the personnel management functions, but with respect to the details gaps and misconceptions persist.Third, the peculiar circumstances of agribusiness and farm work r equire specific skill sets and beginning managers could benefit from targeted training. Fourth, although compensation is important, employees’ job satisfaction and retention can be increased with inexpensive measures, such as feedback and appreciation. Fifth, the relationship between personnel management practices and financial success measures is complicated and difficult to assess. Few personnel management studies have been able to provide evidence of a substantial relationship between any particular personnel management practice and profit, or even productivity. Personnel Management Research in Agribusiness Problem Statement One of the challenges faced by many agribusinesses and farms in the 21st century is the attraction, motivation, and retention of sufficient and qualified labor. Although this problem is more pronounced in industrialized and developed economies, growing and transitional economies, including China, also face a lack of interest in agricultural work. In ad dition, personnel management research has mostly focused on other industries, neglecting agribusiness.Accordingly, agribusiness managers have little to rely on, when developing personnel policies and procedures for a growing business. Once a business has grown beyond the labor capacity of the immediate family, personnel management becomes an issue and practices developed for large corporations often times do not scale down well to smaller businesses or may not fit the agricultural or agribusiness environment. Farm Labor in the U. S. In 2007, U. S. hired farm labor comprised $21. 9 billion or 9. 1% of total production expenses. That was an increase in monetary expenses of $3. billion, compared to $18. 6 billion in 2002, but a decrease in percentage of expenses. In addition, contract labor amounted to $4. 5 billion in expenses or 1. 9% of total production expenses, up $1. 1 billion from 2002. Custom work and custom hauling, which includes machinery costs was up by $0. 8 billion at $4. 1 billion; 1. 7% of total production expenses (2007 Census of Agriculture). Hired labor was the third largest expense group behind purchased feed and purchased livestock and poultry. But farm labor expenses are not equally distributed regionally.According to Kandel, total farm labor expenses amounted to 22. 3% of the cash receipts in California, but only to 2. 5% in Iowa in 2006. The top five states in terms of payroll expenses were California, Florida, Texas, Washington, and Oregon. They account for 42. 8% of the expenditure on hired labor in the U. S. Runyan reported that 1910-19 the share of family labor of total farm employment was 75%; 1990-99 this share had declined to 64%. While total farm employment is declining, the role of hired workers is increasing with increasing farm sizes.However, farm wages rank near the bottom of all occupational groups, second only to private household work (Runyan). This fact may be ameliorated, at least in part, by lower cost of living expenses in rural communities (Gisser and Davila). By agricultural specialization, hired labor is most important for horticultural 3 operations (tree nurseries, ornamentals, fruit, and vegetables) and in dairy farming, followed by livestock and poultry farming; hired labor is least important in field crops.Objectives This paper reviews the foci and results of personnel management research in agriculture and agribusiness in the United States and in Canada, but results are likely applicable beyond these two countries. The goal of the review is to extract the lessons learned and derive guidance for both agribusiness management practice and future research. The specific objectives are to (1) analyze the state of the art of personnel management research in agribusiness, in particular agricultural production, including an analysis of research methods; (2) determine the ain themes with respect to (a) research questions and (b) empirical fields; and (3) summarize empirical results to (a) provide a f oundation for manager training and decision support and (b) serve as a roadmap to future research projects. Procedures Geographically, this paper focuses on the United States and Canada and the review is limited to publications in English. The analysis concentrates on publications analyzing personnel management questions, largely excluding labor market, migration, immigration, and similar analyses.Labor market, migration, and immigration studies are important to understanding the agricultural labor problem and a considerable amount of work has been done on these questions (see, e. g. , Devadoss and Luckstead; Ise and Perloff; Martin and Taylor; Taylor; Tran and Perloff; Walters, Emerson, and Iwai). Less work has been published on personnel management functions and the use of different management practices in agribusiness. Personnel management functions include practices to recruit, train, manage, organize, evaluate, compensate, discipline, and terminate employees, as well as, questi ons of job satisfaction, motivation, and retention.Therefore, the unit of analysis is the agribusiness or farm, not the market, society, or other macro institution. The review covers agribusiness and management journals, agricultural economics journals, and also animal science and horticultural science journals. In addition, research reports and conference papers (gray publications) are included when accessible and relevant. 4 Articles reporting on empirical research, as well as, review articles were content analyzed with respect to the objectives outlined above.A qualitative analysis method was used to determine the personnel management questions addressed, the research methods, the empirical field, the specific results with respect to the questions addressed, and the broader implications of each article. Only articles meeting the criteria summarized above are included in the discussion of the main themes and in the summary tables. Furthermore, although this paper is based on a com prehensive review, it cannot claim to include every study in this field. State of the Art Before 1990, personnel management was virtually absent from agribusiness and gricultural economics research (Howard and McEwan; Rosenberg and Cowen), with very few exceptions (e. g. , Adams, How, and Larson). For the agricultural field, personnel management research basically began in the early 1990ies, but many of these studies are difficult to access, because they have been published as conference or working papers, or in trade magazines, not in peer reviewed journals. Until the end of the 1990ies, studies remain few and common themes are yet to develop, with the possible exception of job attitudes, which appear as an early focus (e. . , Adams, How, and Larson). Additional themes emerging later include managers’ conceptualization of the personnel management functions, managers’ personnel management competencies and practices, and the relationship between personnel management pra ctices and organizational outcomes. Few studies focus on one particular personnel management function; more studies encompass a broad array of functions and the related management practices. Exceptions are studies of the management and preferences of migrant workers and of compensation (table 1).Compensation studies in agribusiness frequently are limited to a description of actual wages and their distribution, sometimes not including benefits, and not relating compensation to organizational outcome variables (see, e. g. , studies cited in Maloney and Milligan). Examples of compensation studies, which transcend this limitation, are a pay method and performance study (Billikopf and Norton), a study of the effect of compensation and working conditions on retention (Gabbard and Perloff), and studies of the relationship between wage, production technologies, and farm size (Hurley, Kliebenstein, and Orazem; Yu et al. . Gabbard and Perloff found that for the same monetary investment employ ee benefits increase the probability of retaining good workers more 5 than higher wages. Strochlic et al. also found benefits to increase retention. No relationship between wages and retention rates was found by Miklavcic, as well as Strochlic et al. Considering that, regardless of the personnel management model used (see Delery and Doty for the universalistic, contingency, and configuration models), specific management practices cannot e considered to function in isolation and independent of other practices. Conclusions based on such studies of singular practices would be limited. Therefore, even researchers interested in a particular personnel management function and in comparing relevant practices for this function, would have to take a more integrative approach and describe other practices to provide context. Empirical evidence for the relevance of the integrative approach in agriculture and agribusiness was provided in Adams, How, and Larson; Chacko, Wacker, and Asar; and Muger a and Bitsch.Despite many commonalities between different branches of agricultural production, the type and conditions of work vary, as does the dependency on weather and growth cycles, e. g. , comparing vegetable production to swine production. Both researchers and practitioners therefore will primarily look at the research matching their current undertaking most closely. Studies vary in their empirical coverage, with respect to the scope of farming specializations included, from studies focused on a single specialization (e. g. , floriculture) to studies including multiple specializations (e. . , horticulture, including floriculture, fruit and vegetable production), and the scope of personnel management functions analyzed, from single function studies (e. g. , compensation; see above) to studies including selected or multiple functions (table 1). Dairy farming stands out as the specialization most likely to be researched. Given that hired labor plays an even larger role in horticu ltural production than in dairy farming, the reasons for the higher interest in personnel management in dairy research are not obvious.The Journal of Dairy Science published papers of a Symposium: Dairy Personnel Management as early as 1993. In addition to the dairy studies reported in table 1 that address personnel management specifically other studies of dairy farming included personnel management questions in broader studies of farm expansion (Bewley, Palmer, and Jackson-Smith; Hadley, Harsh, and Wolf; Stahl et al. ). These studies found that personnel management competencies are most important for the success of farm expansion, but these competencies are also most challenging for farm managers.After an expansion, managers are more likely to use formal practices with respect to all major personnel management functions (Stahl et al. ), but some 6 problems, such as communication, persist (Hadley et al. ), although managers spend more time on personnel management. Also, personnel ma nagement education for large dairy farms has been emphasized as an opportunity for extension programming (Brasier et al. ).A relatively new arena of research, which cuts across different agricultural specializations, is the interface of personal management and sustainable or organic production. The questions being asked include whether sustainable and organic agriculture are inherently beneficial to employees, whether the commitment to sustainability does or should include a social component, and whether a fair labor certification approach would be beneficial to producers (e. g. Shreck, Getz, and Feenstra; Strochlic and Hamerschlag; Strochlic et al. ). Although a majority of certified organic farmers in California believe that organic agriculture is more socially sustainable than conventional agriculture, there is little support to include criteria on working conditions in the organic certification (Shreck, Getz, and Feenstra). On the other hand, Strochlic et al. found considerable interest in a fair labor certification (59% of respondents).Research Methods of Empirical Studies Considering the early stage of personnel management research in agribusiness, research methods were expected to be mostly exploratory and qualitative (Bitsch 2000 and 2005). However, research methods cover the full range from in-depth, unstructured interviews and group discussions, through interview or moderator guide based approaches, up to fully structured surveys administered at the business site or off-site one-on-one or in a group setting, over the phone, or mailed questionnaires (table 2).Fornaciari and Dean found a similar phenomenon in the study of religion, spirituality, and management, where research methods also include many quantitative approaches, despite the early stage of the research field. Reasons for the seemingly early venture into highly structured and quantitative research approaches are more likely to be caused by expectations set up in the qualification process of researchers, professional pressures regarding publication outlets, and differing prestige of certain research approaches in researchers’ professional fields than by research considerations.Although, this review of studies of personnel management in production agriculture and agribusiness cannot claim completeness, the number of studies employing unstructured or moderately structured methods (first two columns in table 2) appears lower than the number of studies employing highly or very highly structured methods (last two columns in table 2). 7However, even many of the quantitative, highly structured studies did not attempt (or accomplish) representative sampling and, therefore, their generalizability can only be judged based on their descriptions of the research approaches and the methods used, and the comparison of results across studies. As a result, researchers and practitioners planning to use studies of either research approach may need to analyze the original sources a nd pay close attention to details, before evaluating the applicability of their results to a different context.Most studies rely on a single method for data collection and multi-method studies are rare. An exception is the case study approach of best management practices by Strochlic and Hamerschlag that employed a variety of methods including semi-structured interviews with farm managers, focus groups with employees, and informal interviews with key informants. Multimethod approaches are likely to yield more valid results, due to the method triangulation involved.The method used most often by personnel management researchers in production agriculture and agribusiness is a survey questionnaire (table 2). Questionnaires are administered in a variety of ways, most frequently in person, which is more likely to garner to reliable results than mailed questionnaires, given the sensitivity of many personnel management questions, but also requires more resources. The number of studies using a mailed questionnaire is surprisingly high, considering the difficulty of developing a questionnaire that is fully understood by potential research participants.Other methods used frequently are moderately structured interviews either in an individual setting or set up as group discussions. Although resource intensive, these latter approaches are more likely to gather reliable data and allow for in-depth study of research questions than the more highly structured approaches, given the early stage of the field, the lack of common understanding of personnel management terms of potential research participants and researchers, and the multitude of interactions etween personnel management practices. Managers’ Conceptualization of Personnel Management Functions As early as 1967, Adams, How, and Larson observed that some farmers seem to have much fewer difficulties in finding and keeping the workforce they needed than other farmers in a comparable situation. Their research showed that this difference was not a chance occurrence, but that these farmers had invested considerably in the relationships with their workforce and carefully developed their personnel management practices.Similarly, Rosenberg and Cowen 8 found dairy managers’ assumptions about their workforce to correlate with their milk output, and suggest that those assumptions guide the choice of organizational structure and the management practices. Hence, it may be concluded that managers’ perception of which personnel management functions need to be given attention and which practices are available to them, will be the determinants of their management choices.After 2000, a renewed effort to delineate the field of agricultural personnel management resulted in three studies using focus group discussions to identify management practices in different areas of agricultural production and services, to describe their advantages and drawbacks from managers’ perspective and to critica lly review these practices. As a research method, focus group discussions are useful to integrate research and extension goals.The interaction between research participants and between research participants and the researchers triggers learning processes. In addition, relationships are developed and reinforced, which not only increase openness during the research process, but encourage participation in educational programs. During the research process, knowledge deficits can be diagnosed (Bitsch 2004). Bitsch und Harsh convened five focus groups with managers and owners of greenhouses, tree nursery operations, and landscape operations in Michigan.The study showed that horticultural managers conceptualize personnel management and its challenges and opportunities along the management process: recruiting and selection, training and development, performance appraisal and discipline, careers and relationships, and compensation. For the research participants, hiring immigrants and labor l egislation were also important HRM topics. In addition, Bitsch et al. convened four focus groups with dairy farmers and managers.Their perceptions of personnel management functions were similar to the horticultural study, and differences were mostly due to the more seasonal character of labor needs in the earlier study. Discipline was more important in dairy farming, because the continuous availability of work creates the need for terminating and replacing some employees who do not perform at the expected level. Seasonal operations often deal with these employees by providing less work to them, laying them off before the end of the season, and not recalling them for the following season.While horticultural managers considered working conditions mostly as an image problem in recruiting, to dairy managers working conditions were a permanent stress on employees. 9 Labor laws and regulations were less important in dairy farming, because few operations had their practices audited by gove rnment agencies at the time of the study. Finally, Bitsch and Olynk (2008) convened six focus groups with owners and managers of pork farms in Kansas and Michigan and reanalyzed the transcripts of the second study.Results of this study served to refine the framework of agricultural personnel management developed based on the first two studies. The most significant extension is an additional set of personnel management practices regarding the performance management function. Performance management describes the daily, informal interaction between managers and employees, including informal feedback, task-related communication, setting priorities, and dealing with problems. Although these practices are important in the day-to-day management processes, there has been little discussion about them in the literature.Also, working conditions were extended to include the organizational structure, and the social environment at work was established as another arena to be monitored and consciou sly managed. The resulting framework of agricultural personnel management includes eleven management functions: recruiting, selection, hiring immigrant employees, training, working conditions and organizational structure, social environment, performance management, discipline, performance appraisal, compensation, and labor law and regulation.Managers’ Personnel Management Competencies and Practices In a recent study, Stup, Holden, and Hyde identified competencies in different management areas on the senior and the middle management level of dairy farms through group discussions and then surveyed different managers about their comfort level with respect to these competencies. While managers were generally confident about their competencies, senior managers were least confident about their personnel management competencies (4. 95 on a 7-point Likert scale, 1=very low, 7=very high, n=41). Middle mangers ranked themselves second lowest in personnel management competencies (4. 1, n=22) and lowest in community service and public relations (4. 05, n=20). Bitsch and Olynk (2007) developed a typology of required personnel management skills for successful management in animal agriculture based on ten focus groups with dairy and pork farmers and managers. The typology consists of five skill sets: motivator, housekeeper, model employee, counselor, and change agent. This typology shows a number of commonalities with 10 the Competing Values Framework, used in general management education (Faerman, Quinn, and Thompson), but also industry specific differences.The motivator with the ability to train and motivate others, and to provide constructive feedback and the housekeeper with the ability to control, to lead, and to discipline others build the core of agricultural personnel management skills and also likely other production enterprises. In addition, the ability and willingness to be a model employee plays a surprisingly large role in agriculture. The function of the counselor, to support employees with their personal problems at work and beyond, was discussed less frequently by the research participants, but is necessary to prevent problems and to sustain employee productivity.The change agent initiates or implements innovations in the production process and was mentioned mostly by managers of larger farms. The authors point out that to be successful managers need to command a complete repertoire of skills including skills from each of the five types and not limit themselves to skills from only one type, for example, out of familiarity with certain behaviors (Hutt and Hutt). The role and the functions of middle management are a field of agricultural personnel management with few studies, but increasing importance.Not only did the share and impact of hired labor increase with increasing farm sizes, and personnel management became more important, but supervisors and middle managers are also playing a larger role. Billikopf (2001) interviewed far m supervisors in California and found them to struggle with personnel management tasks. Bitsch and Yakura employed a case study approach to develop a grounded theory of agricultural middle management (see Bitsch 2005, on grounded theory applications in agribusiness; see Glaser and Strauss on the foundations of grounded theory).The participating middle managers described an unexpectedly large number of different personnel management practices. Bitsch and Yakura suggested that these practices can be clustered into two basic types: traditional practices and participative practices. Traditional practices include reprimanding employees, orienting and training employees, monitoring and controlling employees, and dealing with conflict. Participative practices include accommodating employees (e. g. flexibility in schedules, task and team assignments), managing relationships with employees, providing information and goal setting, listening to employees, providing appreciation and feedback, r ewarding employees (non monetary), modeling work behavior, peer control, manager-induced team building, and training by coworkers. 11 Although this typology shows similarities with McGregor’s Theory X and Y, Bitsch and Yakura underline a significant difference. For the participating middle managers, using traditional or participative practices was not correlated with individuals.Each manager used both traditional, as well as, participative practices. The authors suggest that management success corresponds rather with the number of practices individual managers command than with the type of practices they use more frequently. McGregor had assumed that participative managers would be more successful. Bitsch and Yakura pointed out that some managers did use few practices, whereas others were using the full breadth of the described practices. Given that day-to-day management consists of many different management situations, anagers with a more complete repertoire are more likely to choose suitable practices. Employees’ Job Attitudes and Job Satisfaction Job satisfaction is considered both a goal in itself, as well as, a means to reduce turnover and increase motivation and performance. Although meta-studies found a smaller relationship between job satisfaction and these correlates than expected, several studies of job satisfaction in agriculture have been conducted during the past 50 years (see Bitsch and Hogberg). One of the more frequently applied models is the empirically grounded two-factor model by Herzberg et al.This model is particularly suited to structure the analysis of job attitudes and their context. Empirical evidence that indeed job satisfaction and job dissatisfaction are caused differently as predicted by the Herzberg et al. model is scant (Bitsch 2007). Independent of the theoretical models and the research methods several common results emerge from studies of job attitudes in agriculture. Porter pointed out that half of the dairy far m employees surveyed in New Hampshire saw appreciation of their work as the most important factor for their performance.In addition, they mentioned open communication with their supervisor, good records, and control of the work situation; Porter concluded that financial incentives are less important. Adams, How, and Larson found financial incentives to be important for a satisfactory employer-employee relationships, but stressed the importance of consideration for workers as human beings, taking into account personal problems of workers and helping to find solutions, and getting the right fit of worker and job (see previous section for middle managers’ practices for a similar finding).Bitsch (1996) in a study of tree nursery apprentices in Germany found that a large majority did desire higher wages, but almost half also 12 desired increased appreciation, more training, and more responsibility for their tasks. More training was also requested by Spanish speaking dairy farm emp loyees surveyed by Maloney and Grusenmeyer in New York. Surveying New York dairy farms, Fogleman et al. found that employees were least satisfied with the factor managers had most control over, that is performance feedback.Billikopf (2001) had found supervisors in all branches of agriculture to be mostly satisfied with their jobs. More detailed case studies with horticultural operations found for employees without supervisory responsibilities (Bitsch and Hogberg) and also for supervisors (Bitsch 2007) that the same factors seem to contribute to job satisfaction, as well as, to dissatisfaction, depending on their availability and characteristics.For both groups of employees, job security, achievement, technical competency of the superior, and personal relationships at the workplace were more likely to be perceived as positive. The work itself and organizational procedures and policies were perceived as ambiguous, contributing to both satisfaction and dissatisfaction. Compensation was perceived rather negative, more negative by employees without supervisory responsibilities than by supervisors; the latter are likely to be higher paid and more likely to receive benefits.Employees without supervisory responsibility perceived their work/life balance more positive than supervisors; the latter are also less satisfied with their working conditions. Mainly, this was due to the fact that employees with supervisory responsibilities were expected to be available for work whenever required, whereas employees without supervisory responsibilities were given more flexibility. An earlier study in Germany, also had found that horticultural employees value flexible scheduling and benefit arrangements (Bitsch, Bromm, and Schalich).Relationships between Personnel Management Practices and Organizational Outcomes Relationships between personnel management practices and various organizational outcomes, such as productivity (Rosenberg and Cowen), profit (Adams, How, and Larson), or co mpetitiveness (Chacko, Walker, and Asar; Mugera and Bitsch) have often been assumed, but infrequently been empirically researched. Owners and managers of agricultural operations also testify to a relationship between personnel management practices and farm level outcomes (Bitsch et al. Strochlic and Hamerschlag). The few studies attempting the empirical description and measurement of these relationships in production agriculture and agribusiness have found limited evidence. 13 Rosenberg and Cowen tested several personnel management practices’ and management assumptions’ impact on dairy farm productivity, including prevalence of Theory Y assumptions (McGregor), upward and downward responsibility diffusion, employee selection procedure, employee assessment criteria, and employee performance feedback, along with record use and herd size.In addition to record use, the authors found that Theory Y assumptions and the amount of feedback provided to employees impacted producti vity. Feedback has also been found to be important in employees’ job satisfaction (Bitsch 1996; Fogleman et al. ). Although management assumptions are likely to guide organizational structure, personnel management practice choice, and managers’ communication and interaction with employees, the study did not provide evidence of the relationship between assumptions and particular practices.Stup, Hyde, and Holden analyzed several personnel management practices of successful dairy farms in Pennsylvania, including milk quality incentives, performance reviews, employment of Spanish-speaking employees, use of standard operating procedures for milking, feeding, and reproduction tasks, continuing training, and use of job descriptions. Except for continuous training of employees, farm success did not differ significantly for farms using compared to farms not using these practices.While differences in definitions between Stup, Hyde, and Holden, and Rosenberg and Cowen and little overlap regarding the management practices researched, make it difficult to compare both studies, it should be noted that Stup, Hyde, and Holden did not find performance reviews to be significant. Chacko, Wacker, and Asar compared perceptions of agribusiness managers with respect to the contributions of different technological and personnel management practices to their competitiveness. In general, managers ranked technological practices higher than personnel management practices.However, job security and measures of training and development were among the top ranked management practices. Job security has also been emphasized in job satisfaction studies (Bitsch and Hogberg; Bitsch 2007). Training has been found to stand out in Stup, Hyde, and Holden and has also been emphasized in job attitude studies (Bitsch 1996; Maloney and Grusenmeyer). Based on managers’ perception of particular technological and personnel management practices, Chacko, Wacker, and Asar also aggregated pr actices in a factor analysis and regressed these factors on perceived competitiveness.The regression analysis showed personnel management 14 factors to contribute to a higher extent to different measures of competiveness than technological measures. The employee commitment factor (job security, sharing of profits and gains) stood out as contributing to most competitiveness measures. Mugera and Bitsch used a resource based perspective to analyze whether personnel management practices and the personnel itself constitute a competitive advantage for dairy farms (see Wright et al. for a general discussion of the application of the resource based theory to personnel management).The authors conducted case studies with dairy farms to analyze the integration of personnel management practices with each other (e. g. , practices regarding recruitment, selection, training, and compensation) and their outcomes (e. g. , voluntary turnover and termination). The case studies provided empirical examp les of the applicability of the resource based theory and evidence of the use of personnel management practices as a competitive advantage. The authors emphasize that studies of isolated management practices may lead to misleading results, due to the importance of the integration of practices with each other.Therefore, they recommend an integrative approach to researching and changing personnel management functions. Strochlic et al. surveyed 300 organic farms of various agricultural specializations with respect to their personnel management practices and organizational outcomes. They found significant relationships between an overall labor conditions score and 5- and 10-year retention rates, several occupational safety related practices and person-days lost due to accidents and injuries. No relationship was found between the surveyed management practices and supervisory costs or access to sufficient labor.Conclusions Personnel management research in agribusiness has increased over t he past 20 years, but the field is in an early stage of its development. Although agribusiness managers and organizations are demanding more decision support and training in personnel management, a rapid increase in research volume cannot be expected. The number of researchers giving this field more than cursory attention is relatively small compared to other agribusiness fields. Research funding is limited or unavailable for many agribusiness related personnel management questions. Peer reviewed articles are rare, because ublication outlets lack sensible reviewers for this field and many editors do not perceive it as a priority. 15 Notwithstanding the early stage of personnel management research in agribusiness, several broadly based results are emerging. First, many managers on different hierarchical levels perceive their personnel management skills as an area of weakness. This weakness becomes more visible during organizational growth, when additional employees are needed and tas ks change from production orientation to management, including management of more personnel. Growth processes have been researched mainly in dairy farming.Despite managers’ perception of a lack of personnel management competencies, participation rates in educational programs targeting such skills are not very high. Second, experienced managers typically have an adequate conceptual frame of the personnel management functions, and potential challenges and risks, at least regarding the big picture. They acknowledge all textbook personnel management functions (recruiting, selection, training, performance appraisal, compensation, discipline, and labor law and regulation), although they do not necessarily practice conscientious management with respect to all of these functions.For example, performance evaluation and discipline are rarely practiced. Also, gaps and misconceptions persist with respect to the details of each practice and potential alternative practices, and typically t he details decide the success of these practices. On the other hand, managers perceive a need for additional practices, rarely discussed in the literature, with respect to performance management, the social environment at the workplace, working conditions and organizational structure, as well as, hiring immigrant employees.Third, not only are the personnel management tasks outlined above numerous and often times difficult to balance, but they also result in challenging requirements with respect to the breadth and depth of management competencies and practices. Due to the peculiar circumstances of agricultural work, including long hours and family relationships, requirements of managers are not less stringent, but rather more demanding than in other sectors. Various new and unexpected tasks need to be mastered by newly promoted individuals who normally are not prepared to deal with these tasks.Learning management in agriculture is often limited to imitating the supervisor (Hutt and H utt) and training in many cases consists of â€Å"sink or swim† (Bitsch and Yakura). Many farms could improve their HRM practices through preparatory and accompanying training of their supervisors and managers. On the other hand, given their lack of training, managers have acquired and are using a surprisingly large number of traditional, as well as non traditional, HRM practices. 16 Fourth, compensation is important, as can be expected, considering the low level of agricultural wages compared to other occupational groups.However, incentive systems are not necessarily preferred by employees (Porter; Strochlic and Hamerschlag). In many cases, job satisfaction can be increased with inexpensive measures, such as providing more feedback and appreciation for tasks well done. Similarly, many farms could use training and employee responsibility for task performance to increase productivity and job satisfaction. On the other hand, in general, employees seem satisfied with their work and specifically with its context.Flexibility, especially for employees without supervisory responsibility, and positive personal relationships at work, particularly with superiors, contribute primarily to job satisfaction. As Adam, How, and Larson stated, â€Å"Such relationships seem to be the end result of a combination of policies and practices on the part of farmers and of a genuine liking of farm work and their employers on the part of employees† (p. 60). Fifth, the relationship between personnel management practices and financial measures of organizational success is complex and difficult to assess.Few personnel management studies in production agriculture and agribusiness have been able to provide evidence of a substantial relationship between any particular personnel management practice and profit, or even productivity. In particular, isolated practices do not usually show a statistical relationship with financial measures or even intermediate measures, such as produ ctivity, retention, or supervision costs. Although this is to be expected according to the integrative model of personnel management, it hinders the development of manageable research projects that can be analyzed and described in a standard form.Additional problems stem from the lack of data availability and changing conditions and actors who also continuously develop new practices and strategies. Compared to twenty years ago, when Howard and McEwan declared the absence of personnel management research in the agribusiness field, managers and researchers have more to build on today. A suitable framework of personnel management functions in production agriculture has been developed (Bitsch and Olynk 2008), on which manager training and future research can build.This framework must be broadened to encompass the agribusiness value chain as a whole. Groundwork has been done to describe and conceptualize what managers do in their day-to-day practice to motivate and lead employees, and wh ich competencies they need to acquire to be or become successful managers of personnel. In addition, a lot more is known about how 17 agricultural employees perceive their work and its context and where they see improvement needs. Nevertheless, differences and commonalities between production agriculture and the broader agribusiness environment need to be explored further.Also, future research will have to develop methods to establish the relationship between personnel management practices and organizational outcomes and to analyze specific practices in their organizational context more indepth. Education and training of production agriculture and agribusiness managers, both in the classroom and beyond, can and has started to build on a growing body of empirical research, instead of solely relying on results from other industries and large organizations, which may or may not be applicable in the industry settings.Specific results from many of the studies discussed have been used to develop personnel management programs for managers in production agriculture, both in terms of determining educational needs, as well as developing and organizing program content tailored to managers’ experience and understanding. 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Scope of Personnel Management Studies and Personnel Management Functions Analyzed in Production Agriculture and Agribusiness Studies Focused on One Farm Specialization Studies Focused on One or Few Personnel Management Function(s) Dairy Immigrant employees Harrison et al. ; Maloney; Maloney and Grusenmeyer; Stup and Maloney Floriculture Recruiting and selection Maloney, Milligan, and Petracek Swine Compensation Hurley, Kliebenstein, and Orazem; Yu et al. Vineyards Compensation Billikopf and Norton Studies Encompassing Selected or Many Personnel Management FunctionsDairy Bitsch et al. ; Fogleman et al. ; Hutt; Hutt and Hutt; Mugera und Bitsch; Porter; Rosenberg and Cowen; Stup, Holden, and Hyde; Stup, Hyde, and Holden Swine Howard et al. Floriculture/Greenhouse Bitsch, Bromm, and Schalich Maloney and Milligan Horticulturea) Bitsch (2004); Bitsch (2007); Bitsch and Harsh; Bitsch and Hogberg; Bitsch and Yakura; Miklavcic; Strochlic and Hamerschlag Livestockb) Bitsch and Olynk (2007 and 2008) Studies Encompassing Multiple Farm Specializations Horticulturea) Compensation Billikopf (1995 and 1996) Compensation and working conditions Dunn; Gabbard and PerloffAgriculturec) Adams, How, and Larson; Billikopf (2001); Chacko, Tree nursery production Wacker, and Asar; Howard; Bitsch (1996) Rosenberg, Perloff, and Pradhan; Strochlic et al. a) Horticulture indicates two of more of the following specializations: floriculture and greenhouse, fruit, nuts, vegetable, and vineyard produc tion. b) Livestock indicates two of more of the following specializations: dairy, beef, swine, and poultry production. c) Agriculture includes at least one horticultural and one livestock specialization, as well as agribusiness. 23 Table 2.Degree of Structure of Research Approaches and Methods Used in Personnel Management Research in Production Agriculture and Agribusiness Unstructured or Little Structure Individual Methods Examples Unstructured interviewing Billikopf (2001)a); Hutta); Hutt and Hutta); Strochlic and Hamerschlag Moderately Structured Interview schedule Adams, How, and Larson; Bitsch (2007); Bitsch and Hogberg; Bitsch and Yakura; Howard; Mugera and Bitsch; Porter; Strochlic and Hamerschlag Highly Structured Administered questionnaires At the work site: Billikopf (1995 and 1996); Bitsch, Bromm, and Schalich; Fogleman et al. Howard et al. ; Maloney and Grusenmeyer; Rosenberg and Cowen; Stup, Hyde, and Holden At a housing site: Dunn Over the phone: Billikopf (1996); Malo ney; Maloney and Milligan; Maloney, Milligan, and Petracek; Strochlic et al. Group Methods Examples Unmoderated group discussion Stup and Maloney Moderated group discussion Very Highly Structured Mailed questionnaire Billikopf and Norton; Chacko, Wacker, and Asar; Hurley, Kliebenstein, and Orazem; Miklavcic; Rosenberg, Perloff, and Pradhan; Stup, Holden, and Hyde; Yu et al.Secondary data analysis: Gabbard and Perloff Questionnaire administered to individuals in a group setting Bitsch (2004); At school sites: Bitsch and Harsh; Bitsch (1996) Bitsch and Olynk (2007 and 2008); Bitsch et al. ; Harrison et al. ; Howard; Stup, Holden, and Hyde; Strochlic and Hamerschlag a) Studies where the method was not described sufficiently to categorize by the level of structure were categorized as unstructured. 24