Economies of Scale Essay -- Economics Economy Essays

Economies of Scale Economics Test 1. Define and explain all Internal Economies of Scale:  · Internal Economies of Scale:Are reductions in long-run average cost as the size and output of a firm increases. In other words, they are advantages that large firms have because they are large. As they grow larger in the long-run they manage to raise their output faster than the rise in their total costs. The result is lower long-run average cost. - Marketing economies- Both in buying materials and selling its finished goods a large firm is n a better position than a smaller one. In buying the products it needs, the large firm often pays less for raw materials, machinery and so on because suppliers are sure they are going to get large orders and do not want to lose a big customer. E.g. A producer of shoelaces will sell its products for à ¢Ã¢â‚¬Å¡Ã‚ ¤1 per packet to Nike because it has an order of 1000 packets per week. But for Adidas it will sell them à ¢Ã¢â‚¬Å¡Ã‚ ¤2 because it has only an order of 100 packets per week. So Nike has a lower cost per packet compare to Adidas. In selling its products, Nike can afford to pay for expensive and professionally made advertisements or employ specialist salesmen much easier than Adidas. The large total cost of advertising can be spread over a large output that is sold. Therefore, the average cost of advertising will be low. - Financial economies- If Nike is going to borrow money because it is a well known firm, it is considered more reliable, and less risky is easier to borrow than Adidas. So Nike can borrow a large amount of money with a lower interest rate compared to Adidas. E.g. If Nike borrows à ¢Ã¢â‚¬Å¡Ã‚ ¤1, 000000 it will pay an 8% interest rate while if Adidas borrows à ¢Ã¢â‚¬Å¡Ã‚ ¤1,000 it wil... ...At OQ the firm is enjoying Internal Economies of Scale and its average cost falls. Beyond this point, further growth would make the firm less efficient. Instead of producing with a low average cost, extra production would cause the average cost of each unit of output to rise. 8. Why do small firms still exist? - New firms - Firms do not start large. In other words. Many firms are small because they are new. Those that will be successful are expected to become large over the years. - Desire to remain in control- Sometimes owners of small firms may not want the firm to grow too large in case they lose personal control. - Lack of Finance- Small firms find it difficult to expand because they cannot raise finance. Large companies have huge retained profits and also can sell shares to the general public. Small firms can neither of these.

Human Resource Activities of Qantas Airways Essay

The Qantas Airways is the largest airline in Australia. Its Human Resource Management operates in the company in four major areas, which are business segments, corporate, shared services, development, and learning. This report gives limelight to the Qantas airways HRM and its role in ensuring perfect operations of the company. It further discusses change management and job analysis and design. The company has undergone intensive change management such as cutting of prices and labor costs in order to ensure high productivity, moderation of wages as well as the introduction of flexible structures through a versatile and motivated workforce. Moreover, the HRM is also responsible of ensuring that right people are hired and given necessary training under job analysis and design. However, despite the roles that the company has entrusted the HRM, there have been heightened cases of accidents and strikes from dissatisfied workers alleging that they are paid meager salaries. This shows a HRM gap in delivering its responsibilities. Therefore, the report further argues that the HRM has failed in its change management and job design and analysis strategy. In order to correct the situation, the report further proposes that the HRM change its training and communication model. As a means to an end, the report discusses some of the implications emerging from the HRM problems and ends with a comprehensive summary. Description of Qantas and their HRM Activities The Qantas Airways is Australia’s largest airline. It has a solid history as it began its business years back by transporting passengers and mails. Today, the company has expanded its operations in almost 140 destinations across the globe. It is Australia’s largest employers with around 37,000 employees. The human resource management operates in the company in four major areas, which are business segments, corporate, shared services, and development and learning. Under corporate level, the HRM is responsible for employees’ remuneration as well as benefits, the industrial relations of the airline with its competitors and development of the management. In the business segment level, the HR teams often collaborate with other business segments to ensure successful delivering of strategies that will ensure competitive advantage. Human resource has a major responsibility in the company and under shared services; the HRM is responsible of managing  workers records, supporting remuneration and recruitment process and managing employees’ compensation as well as coming up with strategic plans on staff travelling schedules and schemes (Belobaba, Odoni and Barnhart, 2009). Finally, under the learning and development level, the HRM comes up with training programs for employees to help them deliver their work effectively. HR Functions: Change Management and Job Analysis and Design at the Qantas Airways Discussion of Two HR functions in the Qantas Change Management The Qantas airline was formerly owned by the government hence did not perceive efficiency and profits as its prime goal (Rothkopf, 2009). After its privatisation in 1995, the HRM had to adopt various management practices in order to overcome the company’s external and internal influences. The HRM in their change management has emphasised on cutting costs and more so reduction of labour costs to guarantee heightened productivity, moderation of wages as well as the introduction of flexible structures through a versatile and motivated workforce (Marks, 2007). Cutting labour costs in the Qantas airways have involved strict measures from the HRM such as reducing wages and salaries through eliminating costly practices (Hernandez, 2011.). The Qantas airline HRM has undertaken immense changes in order to cope with diverse external and internal factors (Gillen and Morrison, 2005). Various factors led to changes in the HR management such as the need to have more profits in the company a nd the fact that the company was under government ownership. This means that the airline had maintained its authoritarian hierarchical structure, autocratic form of leadership, and strict procedures and rules (Hughes, 2012). In addition, the airline has been involved in a major change as far as training is concerned and in 2003, the HRM facilitated in the expansion of the company’s apprenticeship programme (Gunn, 1988). According to Kirkpatrick’s model of learning and training, training helps in ensuring affirmative results (Kearns, 2010). Job Analysis and Design Job design and analysis is the cornerstone of the Qantas HRM. Job analysis can be viewed as the hub of all human resource management activities that are needed for effective organizational functioning (Berman et al, 2009). Under job analysis, the HRM is responsible for planning, recruitment, selection, placement, and induction of workers (Berman et al, 2009). The procedures that are often supported by job analysis process include personnel selection, training, job evaluation as well as performance appraisal (Berman et al, 2009). In addition, the process of job analysis supports the Qantas organizational strategy in dealing with market competition and talent crisis. According to human resource theory, strategic HRM focuses on connecting all HR functions with organizational goals (Rothwell and Benscoter, 2012). The Qantas airline HRM in the process of job analysis determines various training needs of workers. Moreover, in job analysis process, the HRM determines on some of the things that affect behavior in the company. After job analysis process, the next step is job design, which aims at outlining and organizing duties, responsibilities, as well as tasks in a single unit in order to achieve particular objectives. Job design in the Qantas airways is essential in enabling effective feedback. In addition, training is an imperative part in job design in order to make sure that employees are conscious of their work demands. Training encompasses leadership training to employee orientation (Aulenbach, 2007). Development and training plays an imperative role in ensuring success of a company. Today, most organizations view training as an imperative role of human resource (Price, 2011). From research conducted, it is apparent that most organizations such as the Qantas airways are spending a lot of money on training with a belief that it will consequently give them a competitive advantage in both global and local market (Jackson, Schuler and Werner, 2011). According to human resource theory (Bacon et al, 2009), workers need maximum support from human resource function. In that case, the Qantas airways offer training to staff in order to motivate them as well as ensure competitive advantage in the company. Frances (2009) avows that training is imperative in ensuring imperative piloting skills. In 2009, the company opened approximately $10 million staff training centers in an effort to build on economies of scale. The HRM through job design help the workforce to make vital adjustments. Problem s and Implications Faced by Qantas Although the two major basic functions of HRM is to ensure successful change management and job analysis and design, the Qantas airline has undergone  through various challenges in these two areas. The HRM in their change management focused on cutting costs such as labor costs in order to increase productivity, ensure moderate workers’ salary and introduce flexible structures. However, they have failed in ensuring effective and non-biased change management. This is because, workers recently have been complaining of being paid meager salaries and even gone for strikes. Under change management, they should have ensured successful remuneration of employees. However, it is embarrassing to note that a reputable company like Qantas with such successful change management strategy has failed to take care of its employees. The unsolved salary issues have caused employee outcry and various scandals in the company. The pilots have been protesting over meager salaries and the union workers have continued to demonstrate over pay inequality arguing they are paid 25% less than their equals in Victoria (Hernandez, 2012). In a survey that was conducted in 2012, on three thousand Qantas employees, the workers expressed dissatisfaction with the management of the company mostly the HRM (McDonald, 2012). Serious staff challenges have continued threatening the company yet up to now the HRM is still reluctant to come up with a new change management model such as ADKAR model that will cater for the interests of workers and allow the company to focus activities on particular business results (Hiatt, 2006). Under Job analysis and design, it is apparent that the HRM made immense mistakes in choosing the right candidates. Despite heavy training programs that the HRM has invested in during job analysis and design process, it is only in 2008 that the company was involved in an in-flight incident, which caused ser ious injuries to passengers and death of 129 passengers due to specious commands (Frances, 2009). In addition, it is apparent that training has not had a positive impact in the company since in 2006, the Qantas Airways pilots failed to monitor their position hence ended up to the wrong runway. Moreover, in 2009, the company’s pilots failed to acknowledge and decided to overshoot their destinations by 150 miles (Frances, 2009). Frances (2009) alleges that captains in the company are not competent enough as they lacked knowledge on use of stick shaker and stall recovery thus causing serious accidents. It is hence clear that the HRM department leaves a lot to be desired as incidences have continued to intensify despite the company’s change management and job design and analysis strategy (Louise, 2011). With such a successful airline company, it is apparent that its HRM is ineffectual and has only led to losses than success. The company asserts that it is committed fully to developing its people, yet they do not seem to know how they can forge a beneficial relationship with its staff. There has been a lot of change in the company including cutting of costs, developing training programs, outsourcing working rules and regulations, collaborating with the unions yet the situation seem to be moving from bad to worse. It is apparent that the HRM has been incompetent in hiring the right personnel and dealing with employees. Implications to Stakeholders Various stakeholders include trade unions, government, shareholders, customers, community, business partners, employees, the media, and non-governmental organizations. They all have a major influence on the company’s performance and its strategy. The media coverage on wrong decisions in the Qantas have affected negatively on the company’s image. The problems discussed obviously imply that the HRM, shareholders, and business partners have been reluctant in solving the current crisis hence affecting the performance of the company. Because of the accidents reported, most consumers are not keen on using Qantas airline hence affecting profitability (BBC News, 2012). Additionally, the challenges in the company have also affected employees and consumers on grounds that they have lost confidence with the running of the company (Sandilands, 2011). The looming disagreement between Qantas and its pilots shows clearly that the HRM and business partners have failed in ensuring they contribute in effective management of the company. In addition, the Non-governmental organizations have failed in conflict resolution between the Qantas and its employees. It is apparent that the HRM, business partners, and non-governmental organizations involved have failed in coming up with rational solutions to ensure such current disputes do not develop into a major crisis. Instead of the company’s CEO, Alan Joyce holding productive talks, he has been busy making provocative comments in numerous heated exchanges. For instance, he condemned union members on issues regarding wages arguing that their talks and protests were baseless (Bamber, 2011). The union leaders in return criticized N senior managers and accused them of tarnishing the brand image of the company while they were awarding themselves hefty salaries. This hence implies that the  community as well as Union members have lost confidence on the company’s stakeholders and this in return has led to bad publicity and reduced profitability. Consequently, the media has given a wide coverage on the company’s latest controversies meaning that it is benefiting financially because of the developing story. It is upsetting to see Qantas’ employees go on strike due to poor management issues in a company owned by various stakeholders. The shareholders, business partners, the HRM, CEO, and Nongovernmental Organizations have a major role to play in ensuring issues in the company are resolved and the company goes back to its initial profitable situation. Therefore, they need to sit down and come up with a rational plan towards improvement (Bamber, 2011). Action plan and Recommendations With the increasing incidences, there is hence a need to come up with an action plan. First, all the stakeholders must meet to discuss on ways to solve the recent crisis. In the meeting, there will be change of communication and training model to more rational models that are employee oriented. The HRM will carry out the process and engage other stakeholders to give ideas on how salary and training issues ought to be handled. The change process will take place from 1st to 28th November in the company’s boardroom. To carry out the process, the employees will be interviewed in order to show some of the areas they would need change. The entire company’s workforce and managers will be given information concerning the changed plan. The recent problems involving HRM function has caused the company to suffer financially. The Qantas airline in their website asserts that, â€Å"Qantas is committed to providing meaningful jobs with competitive salaries and superior benefits† (Qantas, n.d). However, they have failed in fulfilling their promise as the strikes reported tell a different story. In addition, they allege that they â€Å"provide targeted, quality training to the Qantas group and assists in the development of skills† (Qantas, n.d). However, the accidents reported show a major gap in their training strategy. The HRM should revisit their training and communication model and make a change on it. It is time the company moved out of a market approach change strategy that only focus on making profits and focus on employee oriented approach that consider the interests of workers. With an effective training  model, there will be workshop and focus group sessions where employees air their grievances and come up with solutions to their problems (Frances, 2009). In addition, effective HRM communication should contribute successfully to teamwork, learning, innovation, safety, and productivity (Krizan et al, 2010). Moreover, the HRM should invest heavily on their pilot candidates and ensure that they get the right training. Coming up with a HR strategic oriented communication model is important in guaranteeing that employees are at par with requirements and needs of the company. This will help in discussing paramount issues affecting the running of the company. Once there is fit between communicat ion and training model in relation to the role of the HRM, the next step should be to come up with a tactical plan on how the HR will be managing their roles to ensure there are no more scandals. The HR needs to be involved fully in daily operations of the company to ensure alignment with needs of the employees. Moreover, the HRM should come up with performance management plan, which is imperative in following up on the performance of the staff members. The HRM should also be transparent in its strategy. This means that the company’s operational and strategic agenda should be communicated clearly to workers and must be accepted. This will ensure employees’ needs are met and there are no operational challenges. In addition, its mission should be shared with other shareholders to make sure they are on the right path to correcting the image of the company. Today’s HR models recognize on the fact that people do not leave their issues at home when they are going to work. For the company to be successful, it should focus on the needs of the workers whether personal or professional. This will motivate the workers to deliver quality work. In that case, there will be less accidents and remuneration problems in the company (Frances, 2009). In addition, in training sessions, the HR should focus on changing staff members’ attitude towards work and teach them on how to have a positive attitude. This will help in motivating workers and encouraging them to air their grievances through dialogue.

Critical Analysis of the US Electoral College Essay

Electoral College is a term that refers to a selected group of representatives who perform the task of electing candidates for particular powerful offices such as presidents or church leaders. The selection process of electing candidates usually involves participants from different and competing political or religious entities. In the recent past, the Electoral College has been conspicuously practiced in electing the President of the United Stats and the Pope of the Catholic Church. It is the US Electoral College that has particularly drawn much concern as to its effectiveness and reliability in electing the president of the federal republic. This essay identifies some of the problems associated with the Electoral College and analyses the implications of the suggested modifications and alternatives. Analysis of the US Electoral College In the United States, the Electoral College system is used to elect the President from competing candidates from either the Republican Party, the Democratic Party of independent candidates. See more: how to write an analysis Rather than elect a president and a vice-president directly through national elections, the US conducts separate elections in all its 51 states during which the winner in each state is allocated the number of electoral votes proportional to the total representation of the state in Congress which has a total of 538 electoral voters. The winner of the presidential contests is expected to win a total of 270 votes of the Electoral College. Although the design of the Electoral College was clever and well intentioned, the system is susceptible to inherent flaws, some of which were resolved by constitutional amendments while others remain unresolved to date (Miller, 2008). Indeed, as Miller (2008) noted, the selection system established by the Electoral College has at its core the objective to foster fairness in the election of candidates in non-partisan environment, the motive was rendered irrelevant with the formation of competing political parties to compete in the selection process for the presidency. There is no doubt that the Electoral College system presents many challenges and problems to the fairness of the Presidential election in the US which include the problem of election reversal, problems with the voting power, partisan biasness, excessive focus on battleground states and the likelihood of pledge violations. One obvious problem that emerges from the Electoral College system is that the results of adding up the total electoral votes in the states may end up being different from adding up the total popular votes in all those states. Miller (2008) identifies the situation of the 2000 elections where the eventual winner, George W. had more electoral votes but less popular vote than the loser, Albert Gore. Moreover, in the event that there emerges a serious third party contestant, then it would be impossible for any candidate to garner the mandatory 270 electoral votes. According to the US constitution, the emergence of such an eventuality would require that the election process be taken to the Congress where voting should be conducted repeatedly until a victor emerges. Whereas there are concerns if the Electoral College represents adequate allocation of voting powers to all the states, there are also concerns as two whether the bipartisanship of the two-party system in the US is likely to represent non-partisan election of the president. Moreover, the focus of the Electoral College on the battleground states attracts disproportionate attention from parties and their candidates, effectively raising questions on the voting powers of the other states. Conclusion Some of the suggested proposals suggested include: (1) amending the constitution to empower the American with the constitutional rights to directly elect the president through a popular vote; (2) apportionment of the electoral votes fractionally according to the population of states so as to eliminate the problem of election reversal; and (3) equal apportionment of the electoral votes to all states to eliminate the problem of state voting powers. The proposal to amend the constitution so as to give American the constitutional rights to directly elect the president stands out as the most superior suggestion because it will eliminate all the problems and challenges associated with the Electoral College. References Miller, N. R. (2008). The US electoral college: Origins, transformation, problems and prospects. UMBC, retrieved on 22 May 2009 from: .