Government-Business Relations in Greater China and Challenges for Public Administration Essays

Government-Business Relations in Greater China and Challenges for Public Administration Essays Government-Business Relations in Greater China and Challenges for Public Administration Essay Government-Business Relations in Greater China and Challenges for Public Administration Essay 1 Government-Business Relations in Greater China and Challenges for Public Administration Abstract This paper examines the development of government-business relations in China, Hong Kong, and Taiwan and identifies important managerial issues from the Chinese experience. The paper first introduces theoretical concepts about the role of government in economic development and arguments about business promotion and government regulation policies. It then reviews economic development in the three societies and changes in their government-business relations. Three critical managerial issues related to the government-business relations are accountability of incentive policies, effectiveness of government regulation, and anti-corruption of administrative reform. Implications of the Chinese experiences are provided in the conclusion section for future studies of government-business relations. 2 Introduction The topic of government and business relations (G-B relations) has recently become one of the major public policy issues for many developed, developing and economic transition countries. For developed countries, the interest in G-B relations is related to the impact of global financial crisis and the need for government intervention in the financial system (e. g. , government relieve funds and proposed new regulations). In addition to the problem of financial crisis, developing and economic transition countries emphasize the issue of G-B relations because of their special concerns about economic development. For these countries, it is important for them to reform their governments to establish a sound modern market system and implement good development policies to attract the needed foreign capitals and investment. The study of G-B relations in Greater China is valuable for researchers because of the success of China’s economic reform and the changes of economic environment in Taiwan and Hong Kong. 1 Since 1978, China has successfully implemented various reform policies to increase economic growth and to improve the quality of public life. These policies have promoted rivate business development in China and have gradually changed the Chinese system from a totally government-controlled planning system to a market-oriented capitalist system. The G-B relations in China have changed dramatically since the implementation of development and reform policies. Chinese leaders today have to develop new policies to address many negative problems that are associated with the development chan ges. For Taiwan and Hong Kong, the G-B relations have also changed after the success of their economic development and miracles since the 1990s. : The G-B relations in Taiwan have been influenced by the development of Taiwan’s democratization movement and the changes in Taiwan’s political environment. Unlike the past dominant control of the government over the 3 business through the ruling party of Kuomintang (KMT), business communities and enterprises are now influencing the formulation and implementation of public policies through the contribution of campaign financing to political parties and politicians, especially after the administration of Democratic Progressive Party (DDP) in 2000. The G-B relations in Hong Kong have been affected by recent events, such as the 1997 handover to China, the Asian Financial Crisis, and the 2003 SARS outbreak. Unlike the traditional development policy of positive non-interventionism, the government of Hong Kong Special Administration Region (HKSAR) has played an active role and implemented important public policies to protect public safety and to promote business development. This paper examines the G-B relations in China, Hong Kong, and Taiwan by focusing on their development experience. The paper consists of three major sections. The theoretical background section introduces important concepts about the role of government in economic development and arguments about business promotion and government regulation policies. The development background section reviews key development policies in the three societies and changes about their G-B relations. The managerial issue section analyzes major challenges that are related to business promotion, government regulation, and administrative reform. Theoretical Concepts of Government-Business Relations To study G-B relations in Greater China, we need to understand theoretical concepts and arguments about the role of government in economic development, the essentials of business promotion policies, and the development of government regulation. A. The Role of Government in Economic Development The important role of government in the modern economic system has been well recognized in the literature of public finance, public policy and developed economics. From the 4 ublic finance perspective, for example, Musgrave and Musgrave (1980) explain the issue of market failure and promote three functions of government, which include the allocation of social and other goods that the market will not of itself provide, the equitable distribution of income and wealth; and the stabilization of unemployment and control of inflation. From the public policy consideration, Nicholas Stern (1991) emphasizes five arguments for governmental interventio n in the economy. The arguments consist of concerns for market failure (i. e. relating to externalities, public goods, and imperfect information), concerns to prevent or reduce poverty and improve income distribution, the assertion of a right to certain facilities or goods (e. g. , education, health, and housing), the importance of paternalism (e. g. , relating to education, pensions, and drugs); and the rights of future generations (e. g. , relating to the environmental). The issue of state or government involvement in economic growth has been further emphasized and debated in the literature of development economics. The issue of debate is not whether a state or government should be involved in economic development, but what the appropriate role of government might be in promoting growth and development. The neoclassical arguments of development emphasize the role of foreign trade and investment and the importance of a free market in stimulating competition during the development process (Galenson, 1985; Wade, 1990, 1992). They recognize the role of state in the process of development but emphasize a passive and limited role of government in such activities as maintaining stability and providing physical infrastructure. Statist arguments of development offer a different approach on this issue. They point out that the successful experience of many newly industrialized countries (NICs) is related not only to the operation of the free market but 5 also to the active role of government in directing public and private resources to change the structure of their economy (Johnson, 1982; Ho, 1981; Lin, 1989). Considering these different arguments, Liou (1998a) introduces five major roles of government in the process of economic development. The five roles are protector, controller, distributor, promoter, and regulator. As the protector role, government needs to formulate and implement public policies (i. e. , national defense policy and public safety policy) to protect citizens and businesses from foreign attacks, criminal and illegal activities. These policies should promote a safe and stable environment without political interruption and social unrest. Next, to assure a safe and stable economic environment, government needs to play a control role to adjust public policies (i. e. monetary policy and fiscal policy) that are related to the management of nation’s macroeconomic environment. These policies are important to the macroeconomic problems of inflation and unemployment. Third, to assure social equity, government also needs to play a role of distributor to develop public policies (e. g. , social welfare policy and rural development policy) to prevent unfair distribution of public resources among various clas ses, regions, and disadvantaged groups. Fourth, government plays a role of promoter of economic growth and social development and needs to use public policies (e. . , business incentive policies and international trade policies) to invest in public infrastructure and to promote the development and advancement of business sectors in both domestic and international markets. Finally, as a regulator, government also focuses on the regulation of industry and business operations for public interests. Regulation policies (e. g. , environmental regulation, finance and insurance regulation) are developed to maintain the balance between the development of business and industry competition and the protection of natural environment and individual rights. While the 6 first three roles apply to public issues in general, the last two roles (promoter and regulator) are specifically related to our study of G-B relations and will be further examined next. B. Business Promotion Policies To promote economic development, governments at all levels have designed various public policies to support the establishment of business companies and plants, to attract the relocation of new and expansion business, and to foster further development of existing business. As mentioned previously, many of the NICs have implemented various incentive policies to promote business development in their countries. These business promotion policies include, for example, general incentive policies to encourage the accumulation of production factors (e. g. , tax measures, Research Development funds) and specific industrial targeting policies to promote the growth of particular industries (e. g. , subsidizing credit or import protection for technology industries) (World Bank 1993). Business promotion policies have also been emphasized in developed countries to promote state and local economic development (e. g. , Eisinger, 1988). For example, in the United States, Clark and Montjoy (1998: 169-170) summarize economic development programs in terms of four types: (1) subsidizing traditional inputs such as capital (e. g. , direct loans and loan guarantees, tax-exempt bond financing, development corporations), land (e. g. , land banking, site development provision), and labor (e. g. low-cost/mass production, and high quality/lean production); (2) lowering political costs of doing business, including tax abatements and incentives, and limitations on the regulatory environment; (3) promoting entrepreneurial activities of market development (e. g. , export promotion, research and dissemination) and business services (e. g. , policy planning, RD support and consortia); and (4) developing 7 attractive social amenities (e. g. , arts, environment) and improving distressed areas (e. g. , enterprise zones). The widespread use of incentive policies have resulted in some critiques about their efficiency and equity. On the efficiency (or effectiveness) side, researchers of local incentive programs in the United States have argued that these programs have little influence on either the level or the distribution of economic growth, especially when compared them with the impact of market factors (e. g. , Bartik 1991; 1992). From the equity perspective, researchers indicated that many of the traditional incentives simply transfer money from the public sector to successful firms (moving these firms from place to place) and do litter to help those in need (Rubin 1998). Researchers further pointed out that the use of financial incentives is based on political considerations because tax and incentives are easy to control and manipulate when comparing them with other determinative factors such as the quality of the local labor force (Wolman and Spitzley 1996). They also noticed that policymakers enact tax incentives not on the basis of rational economic analysis, but as a defensive measure against regional competition (Grady 1987). C. Government Regulation and Reform While business promotion policies attempt to support the development of industries and firms, government regulation policies are designed to address side effects or negative issues that are related to business development. The term regulation has been referred to as â€Å"any attempt by the government to control the behavior of citizens, corporations, or subgovernments† (Meier, 1985:1) or â€Å"the diverse set of instruments by which governments set requirements on enterprises and citizens† (OECD, 1999: 16). Researchers (Buchholz, 1992; OECD, 1999) identified three types of economic, social, and administrative regulations. Economic regulation focuses on the 8 direct government intervention in corporations and market decisions such as pricing, competition, market entry or exit. Social regulation is related to government protection of citizen and social values such as health, safety, the environment and social cohesion. Administrative regulation has to do with government formalities and paperwork. Researches further explain some rationales for government regulation, which include problems of monopolies and natural monopolies (e. g. , utilities), externalities (e. . , pollution of river by factory), information inadequacies (e. g. , food, drug and beverage labeling), public goods and moral hazards (e. g. , defense, security, and health services), unequal bargaining powers (e. g. , health and safety at work), and distributive justice and social policy (e. g. , victim protection and prevent discrimination) (Baldwin and Cave, 1999). Since the late 1970s, the pervasive use of regulation, along with the growth of regulatory cost, has resulted in many suggestions for regulatory reforms. The purpose of regulatory reform is to improve the quality of regulations in terms of enhancing performance, reducing costs, or finding alternative policy tools (OECD, 1999: 16). Specifically, for economic regulations, reform aims to increase economic efficiency by reducing barriers to competition and innovation, through deregulation and use of efficiency-promoting regulations. For social regulations, reform aims to verify that regulation is needed and to design regulatory or other flexible and low cost instruments (e. . , market incentives and goal-based approaches). Finally, for administrative regulations, reform aims at eliminating aspects of red tape that is no longer needed, streamlining and simplifying those that are needed, and improving the transparency of application. While trying to reduce government intervention and inefficiency problems, many regulatory reforms (i. e. , deregulation or privatization) have resulted in new problems to industries and consumers. For example, deregulation is very popular among the public and 9 usiness, but deregulation alone is insufficient in resolving the problems of regulation because it is considered as a reactive approach to addresses problems developed in the past and it focused not on the system or new challenge, but on instruments and techniques (OECD, 1999; Liou, 2007a). In practice, the implementation of deregulation in many sectors and industries has produced problems, which require additional governmental action. For example, the electricity meltdown in California is related to deregulation efforts in the electric utilities industry. Policymakers in other states have delayed the implementation of deregulation and have considered other supporting mechanisms (e. g. , multi-state trading zones) to avoid the same problem in the future (Swope, 2001). In the commercial banking industry, researchers (e. g. , Krause, 1994) reported that the deregulation policy and other changes (i. e. , the Depository Institutions Deregulation and Monetary Control Act, the ideological changes of relevant congressional banking subcommittee members) serve as the most important explanation of the instability facing the banking industry. The financial crisis of 2008 provided additional evidences to show the failure of government regulation and deregulation reform in the US banking and insurance industries. The explanations of theoretical concepts and arguments are important for the study of G- B relations in Greater China because of the important role of government in the Chinese societies, the contribution of business promotion policies to their economic development, and the need for effective regulation policies to address new challenges. Economic Development in China, Hong Kong and Taiwan A. Economic Development in China Before the reform years, we can categorize the Chinese state-society relations as a state- dominated society, including the state control over business and commercial activities (Liberthal, 10 1995; Liou, 2000a). The Communist Party-state controlled almost all aspects of social life through a huge and complex administrative structure, various monitoring policies and systems, and continued political and ideological struggles. The result of total state control over society was a highly homogeneous society: people receiving low salaries from government or state- owned agencies, spending and consuming foods and other goods according to ration coupons or quotas controlled by the government. There were no major business operations and commercial activities in most of the cities. The government controlled the ownership, production, distribution and consumption of all business operations. Since the late 1970s, Chinese government has emphasized the â€Å"reform and opening-up† policy to promote the country’s modernization and economic development. For the past thirty years, the government has implemented many policies to adjust the role and operation of government and to promote business investment and production. In the area of business promotion, policy changes implemented include, for example, the contract responsibility system (CRS) in both the rural-agricultural and the urban-industrial areas to encourage business activities and market operation (e. g. , Gao, 1996; Lu and Tang, 1997), and the special economic zones (SEZs) to provide preferential policies (e. g. , lower tax rates) in coastal regions to attract oreign investors for the needed capital and human resources (Bell et al. , 1993; Stoltenberg, 1984). One recent example of preferential policies in SEZs is the project of Tianjin Harbor Port Development District to provide tax benefits, export promotion and logistic services to promote business development. In the area of government reform, Chinese leaders have introduced various policy changes to its huge administra tive system to remove bureaucratic inefficiency problems (Burns, 1993). 2 Among these reforms, the strategies of administrative decentralization and deregulation 11 re directly related to the topic of G-B relations. The decentralization strategy refers to the effort of the central government to decentralize decision-making powers (especially in economic related activities) to local administrative units to improve the quality of government decisions. After the decentralization strategy, local governments have become very active in economic activities and local officials’ pro-business attitudes are critical to the implementation of development policies (Chen, Jefferson, Singh, 1992; Waste, 1986). The deregulation strategy consists of both process and structure changes. On good example of the process change has been the reform of China’s administrative examination and approval system to support business development. The administrative examination and approval was based on the old planned economic system and tended to be irrational and inefficient in its operation (e. g. , overlapping functions, black-box operations). The reform calls for the development of an open and transparent system and emphasizes the application of scientific principles in making related decisions (e. . , items to be examined, standards and conditions for the approval). A high level â€Å"Leading Group for Administrative and Examination Approval System Reform† was established in 2001 to comprehensive review projects that are subject to administrative examination and approval. From 2002 to 2004, the State Council eliminated or moderated 1,806 such projects. By the end of 2004, the number of p rojects that needed review and approval by State Council departments had been cut by half (OECD, 2005). The structural change refers to the separation of economic enterprises from administrative agencies because the old administrative system not only included many industrial organizations but also controlled the operation of these organizations. One good example of the structure change has been the reform of state-owned enterprises (SOEs). 3 The SOEs reforms consist of such stages as the expansion of SOEs’ autonomy rights in production related decisions (from 1978 to 1992), the transformation of SOEs 12 nto the modern enterprise system (between 1992 and 1997) and related laws (e. g. , a Competition Law and a Company law of 1993), and the establishment of an effective corporate governance to address related financial and social security issues (e. g. , Yang, 2008). These development policies have successfully improved China’s macroeconomic performance and business development. On the overall economic performance, for example, China’s gross domestic product (GDP) has grown an average 9. percent a year since the reform and its GDP has risen from Rmb 362. 4 billion in 1978 to Rmb 31,404. 5 billion in 2008. Chinese people have become richer, with annual GDP per capita rising from Rmb 379 in 1978 to Rmb 16,084 in 2006. The success of China’s economic reform has resulted in some challenging issues that affect its G-B relations. The first issue is the serious safety problems in the areas of consumer protection. Several food safety incidents have been reported at the national or international levels. At the national level, for example, in 2004, one incident of counterfeit baby formula was noticed by the public because at least 13 babies in Fuyang, Anhui and 50-60 more in the rural areas of Anhui province died of malnourishment from ingesting fake milk power (China Daily, 2004). At the international level, for example, in 2007, Mattel Inc. recalled 18. 2 million Chinese made toys produced with lead painting because of the violation of require rules by its supplier Early Light Industrial Co. (McDonald, 2007). The issue of consumer protection emerged again in 2008 when over 12,000 children have been made ill by milk power contaminated with industrial chemical melamine (China Daily, 2008). The second challenging issue has to do with environmental problems, in terms of soil contamination, river cessation, water pollution and air pollution. A World Bank study (2007) estimated that up to 760,000 people die prematurely each year in China because of air and water pollution. High levels of air pollution in China’s cities lead to 350,000 to 400,000 premature deaths and another 300,000 die 13 because of poor-quality air indoors. There were additional 60,000 premature deaths each year due to poor-quality water. The final issue is related to labor safety and protection. One of the major factors contributing to China’s economic development is the abundance of low-cost labor that enabled both domestic and foreign companies to produce cheap products. Along with the development, these labors have encountered many problems in their working places, such as no labor contract with employers, long working hours, below minimum wages, no medical insurance and social welfare services, workplace injuries, and physical assault and personal humiliation from supervisors. The problem of labor protection is evidenced in the report of rising labor disputes and workplace accidents. One study has noted that labor dispute cases in 2005 are 314,000, which is more than double the number of cases in 2000 and nearly 10 times that of 1995 and that the number of workers involved in disputes grew from 467,000 in 2001 to 740,000 in 2005 (Wu, 2006). One recent example about workplace accident is the explosion of the Xinxing Coal Mine in Hegang City, Heilongjiang Province on November 21st, 2009, claiming 108 lives in this incident (Xinhua News Agency, 2009). B. Economic Development in Hong Kong Unlike the past Chinese development experience, Hong Kong has be very successful in its economic development for many years and has been considered as one of the Asian economic miracles. Before the handover in 1997, the colonial government had implemented various economic development policies to adjust the role or intervention of governmental in creating a free and open market system (Cheung, 2000; Wade, 1990; Yu, 1997). For example, before the 1970s, the government was criticized as a laissez-fair role with low expenditure service and low participation. Between the 1970s and the 1990s, the colonial government adopted a policy of positive non-interventionism to seek collaborations between the government and big business 14 corporations and to invest in public infrastructures and services to support economic development. 4 After the 1990s, with the emergence of electoral and legislative politics, the government moved to a model of consensus capitalism to include wider social interests by forming an alliance among the administrative bureaucrats, business entrepreneurs, and professional elites. These economic development policies have successfully changed Hong Kong’s economic structures from the past manufacturing industries (e. g. , textile, electronics) to the new financial and service industries (e. g. , real estate, insurance, brokering and banking). After the handover in 1997, the government of HKSAR has encountered several challenging events that affect its economic development and social stability. These events include Asian financial crisis in 1997, the dot-com bubbles in 2000, the 9/11 terrorist attacks in the US and subsequent recession in 2001-02, the SARS outbreak in 2003, and the recent financial crisis in 2008. Unlike the past approach of positive non-intervention, the government emphasized the principle of â€Å"Big Market, Small Government† to encourage entrepreneurship and fair competition on the one hand, and a proactive approach (but also pro-market) on the other hand to deal with these challenges and other rapid changes in the world (Tsang, 2006). The government has been successful in adjusting its labor and financial policies to reduce unemployment rates and stabilize the stock and currency markets and in implementing strict regulations to protect public safety and health. These policies were supported by external stimulus activities from the Mainland China. After the Closer Economic Partnership Arrangement (CEPA) in 2004, Hong Kong has deepened its economic integration with the Mainland China. More Mainland visitors and enterprises come to Hong Kong for leisure, business and investment. Local Hong Kong companies have easier access to the vast Mainland market. The results have been strong recovery with consistent high GDP growth rates since 2004 (i. e. , 8. 46 in 2004, 7. 12 15 in 2005, 6. 75 in 2006, and 6. 83 in 2007). At the end of 2007, the GDP reached to HK$1,627. 5 billion (US$208. 7 billion) and GDP per capita was HK$235,134 (US$30,157). The G-B relations in Hong Kong have changed since the 1990s (Loh, 2004; Lui, 2008; Ngo, 2000; Tang, 1999). On the business side, the decline of traditional British company, the rise of local Chinese business groups, and the increase of mainland connection have changed the traditional institutional framework between the colonial administration and business elites. After the deregulation and decentralization policies in the 1990s, he new family-based local business groups have consolidated their interests and expanded their markets in deregulated areas of telecommunications, energy, and public transportation. While the dominance of business interests in Hong Kong politics has continued, the economic structures and competition rules have become more fragmented and complicated after the handover in 1997. On the government side, the SAR government has to follow the framework of Basic Law to deal with conflicting demands from business groups, community leaders and the general public in their fight for social welfare programs and political participation rights. This was not an easy task for the first SAR government (under the leadership of the Chief Executive Tung Chee-hwa) as it was been criticized for supporting big business over other sectors. The Tung administration was challenged later in July 1, 2003 by over 500,000 people demonstration against the proposed Article 23 national security legislation. The new SAR government (under the leadership of the Chief Executive Donald Tsang) has learned to seek more broad-based support for its development policies and has gradually resumed control after successfully dealing with a series of legitimacy crisis. Future challenges for the government will include political, economic, social and cultural changes that are related to the close tie between Hong Kong and the mainland, including, for example, political right and participation of Hong Kong residents (i. e. , related to 16 the general direct election), disappearing of the middle class (i. e. , related to the gap between the rich and the poor and the relocation of mid-management positions to the mainland), and conflict of self-identification crisis (i. e. , related to the defining of Hong Kong’s relationship with China) (e. . , Loh, 2004; Lui, 2008; Martin, 2007) C. Economic Development in Taiwan Taiwan’s post-WWII economic development can be understood from the studies of various developmental plans and policies (e. g. , Kuo, Ranis and Fei, 1981; Li, 1995; Liou, 2002a). For example, between 1952 and 1989, the government implemented eight four-year plans and one six-year plan, which gradually transformed Taiwan’s e conomic systems in different stages and periods, including the colonial agricultural development (before 1950s), the mport-substitution development (1950-62), the export promotion development (1962-80), and the accelerated liberalization development (after 1980). Within these plans, the government had established several economic institutions (e. g. , Economic Planning Council and Council for Economic Planning and Development in the1970s) to emphasize such policy measures as land reforms, fiscal policy reforms (e. g. , tax collection system, investment encouragement programs), monetary policy adjustments (e. g. , interest rate policy, foreign exchange management, regulation of banking, insurance, and securities), and population and manpower initiatives (e. . , family planning, vocational training). These development plans and polices have been supported by the effectiveness of Taiwan’s administrative system and the entrepreneurship of medium and small businesses. In recent ye ars, two major policy issues have affected Taiwan’s economic development. The first issue has been the emphasis on economic liberalization policy since the 1980s, which include the reduction of government control and regulation in economic spheres and the gradual 17 elimination of state subsidies to manufactures. The goal is to transform Taiwan’s economic system to replace its labor-intensive industries with technology-intensive or capital-intensive industries. One example of the liberalization policy is the privatization of state-owned enterprises (SOEs), which includes the merge or shut down enterprises in the face of continuing losses (e. g. , Taiwan Alkali Co. ) and the privatization of all government controlled commercial banks to establish private banks and financial institutions for the promotion of capital industry (Liou, 1992; 1994). The second issue has to do with the democratization movement in Taiwan’s political system, which consists of the lifting of martial law in 1987, the election of Lee, Teng-hui (a native Taiwanese in the Kuomingtang, KMT) as President in 1992, the emergence of several opposition parties (especially the Democratic Progressive Party, DPP), and the election of Chen, Shui-bian (the leader of the DPP) in 2000. Taiwan’s G-B relations have changed along with the new challenges in economic and political environment. Taiwan has gradually lost its comparative advantage of inexpensive labor and cannot compete with those offered from neighboring countries. The relocations of many manufacturing and labor intensive industries to the Mainland China and Southeastern countries (e. g. , Vietnam) have resulted in the rise of unemployment population in Taiwan. Taiwan’s investment has deteriorated because of the influence of special interest groups on government policy since the 1990s under the Lee, Teng-hui’s administration. Regarding the investment issue in the Mainland China, Lee’s â€Å"patience over haste† policy has been ineffective in limiting the increase of Taiwanese businesses investment in China and has brought internal conflicting arguments in Taiwan’s society. The past sound development environment has been further deteriorated because of the inexperience of Chen Shui-bia’s administration, the inconsistence of government’s policies (e. g. , policy on the nuclear power development), the connection between politicians and business 18 conglomerates, and the increasing political confrontation between the Pan-Blue Coalition and Pan- Green Coalition parties. The election of Ma, Ying-jeou in 2008 has not immediately resolved Taiwan’s economic challenges. Unlike the past high growth records, Taiwan’s GDP growths have been relatively low after 2000, from 4. 06 in 2000, -1. 69 in 2001, 4. 7 in 2002, 2. 20 in 2003, 5. 19 in 2004, 3. 52 in 2005, 4. 04 in 2006, and 6. 03 in 2007. Both the amount of GPD and GDP per capita only increased small percentages between 2000 and 2007, with GDP increased from NT$10,032 billion (US$ 321,230 million) to NT$ 12,635. 8 billion (US$ 384,768 million) and GDP per capita increased from NT$453 ,422 (US$ 14,519) to NT$ 553,507 (US$ 16,855). 5 Managerial Issues in Government-Business Relations The previous review of developmental experience in China, Hong Kong and Taiwan has showed that G-B relations in these societies have become complicated along with the economic development and changes. It is clear that all three governments have emphasized the government-guided strategy to promote their economic development. Despite differences in the intervention level and scope (e. g. , less intervention in Hong Kong), all three governments have made institutions arrangements and policy changes to create a free market system and a safe social environment to attract foreign investment and to assist local business development. These governmental policies and changes are critical to support the entrepreneurship development in these societies, which has been considered as one of the major characteristics of their development experience (e. . , Liou, 1998b; Yu, 2007; 1997). To understand the interaction of government and business, we further analyze key managerial issues that are related to business promotion, government regulation, and administrative reform. A. Business Promotion and Accountability Concern 19 The first managerial issue in the study of G-B relations is the accountabil ity concern of business promotion policy. As explained previously, all three governments have implemented various incentive policies to promote business development in their societies. While they are successful in attracting foreign investment to provide the needed financial capitals, technical skills, and managerial knowledge, these incentives have also resulted in some negative consequences such as unfair treatments between domestic firms and foreign companies, special favors to big businesses over small firms, unequal developments between regions with and without such incentives, resource waste and low return of investment rates, and no consideration of side costs associated with economic growth (e. . , air pollutions, increase of public debts). These negative consequences about incentive policies indicate the need for developing a well-organized evaluation system to assure the accountability of these policies. In recent years, public administration researchers have emphasized the value of accountability for results to promote the outcome and performance based management (e. g. , Rainey, 2003; Romzek and Dubnice, 1987). To address accountability concerns, development evaluation becomes an important task for the management of incentive policies. Public managers need to conduct various performance evaluation methods to monitor the costs and benefits of each tax incentive for the purpose of protecting public interests (Liou, 2007b). The challenges for managers are in the process of making incentive decisions and the criteria used to make such decisions. In many cases, incentive decisions have been challenged with different considerations, such s short term interests vs. long term interests, and economic benefits vs. social or environmental welfares. While no easy and clear answers for these questions, public managers have to pay attention to these controversial issues and to promote accountability in every aspect of the development process. 20 B. Government Regulation and Effectiveness Challenge The second managerial issue in the G-B relations is the controversial role of government regulation in the p rocess of economic developmen

Brennan Surname Meaning and Origin

Brennan Surname Meaning and Origin One of Irelands most frequent surnames, Brennan generally derived as a form of one of several Irish language surnames: From the Irish  Ãƒâ€œ Braonin, meaning descendant of  Braonn.  The Irish personal name Braonn is believed to mean sorrow, from the Irish  braon, meaning moisture or drop.From the Irish names Mac Branin and Ó Branin, both meaning descendant of Brann,  from the given name Brann, derived from  bran, meaning little raven. The Mac Branin were chiefs of a large territory in present-day County Roscommon, and many of the Brennan families in the counties of Mayo, Sligo and Roscommon descend from them. The OBrennans were chiefs of the  Uà ­ Duach sept located in northern Osraighe (Ossory), which  included all of county Kilkenny and part of county Laois. Brennan is one of 50 common Irish surnames of modern Ireland.   Surname Origin:  Irish Alternate Surname Spellings:  BRENNEN, MCBRENNAN, MACBRENNAN, BRANNON, BRANNAN, BRANNEN, BRANNIN, OBRAONAIN, BRANNY Where do People with the Surname BRENNAN Live? Irish Brennan families were very widespread, settling in Fermanagh, Galway, Kerry, Kilkenny, and Westmeath. According to WorldNames publicprofiler, individuals with the Brennan last name are now found in largest numbers in central Ireland, especially in County Sligo and the province of Leinster. The surname is much less common in Northern Ireland. Famous People with the Surname BRENNAN Walter Brennan - American actor, veteran of over 100 filmsWillie Brennan - Irish highwayman of legend, immortalized by Brennan on the MoorWilliam J. Brennan Jr. - former US Supreme Court justiceMaeve Brennan - Irish short story writer and journalist Genealogy Resources for the Surname BRENNAN The Brennans of ConnachtPat Brennan has put together a great deal of information on the origins of the Brennan surname, genealogies of early Brennan families, a list of MacBranan chiefs, and history of the families after the famine. British Surname Profiler - Distribution of the Brennan SurnameTrace the geography and history of the Brennan surname through this free online database based on a University College London (UCL) project investigating the distribution of surnames in Great Britain, both current and historic. Brennan Family Genealogy ForumSearch this popular genealogy forum for the Brennan surname to find others who might be researching your ancestors, or post your own Brennan surname query. FamilySearch - BRENNAN GenealogyAccess over 1.9 million free historical records and lineage-linked family trees posted for the Brennan surname and its variations. BRENNAN Surname Family Mailing ListsRootsWeb hosts several free mailing lists for researchers of the Brennan surname. DistantCousin.com - BRENNAN Genealogy Family HistoryFree databases and genealogy links for the last name Brennan. Looking for the meaning of a given name? Check out First Name Meanings Cant find your last name listed? Suggest a surname to be added to the Glossary of Surname Meanings Origins. - References: Surname Meanings Origins Cottle, Basil. Penguin Dictionary of Surnames. Baltimore, MD: Penguin Books, 1967. Menk, Lars. A Dictionary of German Jewish Surnames. Avotaynu, 2005. Beider, Alexander. A Dictionary of Jewish Surnames from Galicia. Avotaynu, 2004. Hanks, Patrick and Flavia Hodges. A Dictionary of Surnames. Oxford University Press, 1989. Hanks, Patrick. Dictionary of American Family Names. Oxford University Press, 2003. Smith, Elsdon C. American Surnames. Genealogical Publishing Company, 1997. Back to Glossary of Surname Meanings Origins

Is genetic engineering ethical right Essay Example | Topics and Well Written Essays - 2000 words

Is genetic engineering ethical right - Essay Example Ethics is concerned with what is right or what is wrong. Defining ethics for stem cell research is quite challenging. Researchers and scientists have been focusing on the risks of the stem cell research and any issues and concerns that are raised by the general society. Some researchers claimed that they do not know exactly where to draw the line regarding ethics in stem cell research when scientists organized a panel to discuss the ethical issues that may arise in this field (Nathan, 2006). Situational ethics depend on the situation of something at a given time and applying the moral principles to what has been done to determine whether it is right or wrong. Situational ethics do not have adherence to specific rules and is based on the greater good. The person has to do what is right morally to achieve the goals of situational ethics. However, there are some things which are deemed good but they are wrong in some ways. This makes such things to be rejected by some people despite agr eement that they have sustainable solutions. For example, the stem cell research is widely accepted by all people. However, the source of the stem cells is considered wrong as it increased immorality (Oxford Dictionaries, 2013). On the other hand, Utilitarianism ethics which are also known as consequential ethics are based results of an action. If the consequences are good, then the consequences are morally right but when the consequences are bad, then the act is termed as morally wrong. In the stem cell research, the use of blastocysts as source of stem cells leads to death of the expected child. As it is widely believed, the life of a person starts immediately the sperm fuses with an ovum. As such, when a blastocyct is used, the embryo that would have grown to be fetus and a child is killed (Sinnott-Armstrong, 2012). Stem cell research can change the medical field dramatically, by providing cure for genetic diseases but has been faced with a number of situational and consequential ethical issues which have to be addressed to maximize on the benefits of this field. Embryonic stem cell research is based on undifferentiated cells in the blastocysts. This is a round ball like structure which is formed immediately after fertilization of the egg by the sperm. Its formation starts in the fifth day after fertilization when the zygote has settled on the wall of the uterus. Blastocysts are made up of cells which are to form all the parts of the body during the pregnancy. As such, the cells are differentiating at a very high rate. Since most of the cells are not differentiated, they can be used by scientists and researchers to form any part of the body. The fact that there are many undifferentiated cells that can be obtained from a single blastocyct makes the scientists and researchers to prefer them for stem cell research. Blastocysts for obtaining stem cell research are obtained in several ways. One, scientists and researchers are said to have agreements with abortio n clinics. The agreement is for the clinics to surrender viable blastocysts to the scientists and researchers within a given period of time. In this case, when the clinics come across aborted embryos that would be good candidates for obtaining stem cells, they store them and pass them to the stem cell research laboratories for obtaining the cells. The situational ethical question here is whether it is morally right to take

Page 50 51 and Assignment Example | Topics and Well Written Essays - 250 words

Page 50 51 and - Assignment Example Sketching an outline for a thesis is a good exercise for developing writing abilities. Check if each topic sentence clearly supports the thesis. Consider changing the organization if topic sentences and paragraphs are not connected to one another. Consider also changing the thesis if writing about the topic reveals something new. Change the essay, redraft change thesis and topic sentences. Be open to changing the essay if it doesn’t work out. Nothing is permanent when it comes to writing. Changes can happen as we collect information and develop arguments, paragraphs. Paragraph development. Beginning writers have weakness in developing paragraphs, so must practice in developing them by using topic sentence and information to support topic sentences. Each paragraph must support the topic sentence in different ways- explain, define, give examples, any way to support the topic sentence. Give sufficient information and evidence to support the topic sentence. Make information, clear and specific. Another example of fully developed paragraph. Used many examples to support the topic sentence. More convincing because of stories and examples that prove that Jesse James is a Robin Hood kind of outlaw. They all say something about the topic sentence- connection, unity is clear. Give more evidence to develop the paragraph. Give information that is connected to the topic sentence. Again, think of unity and coherence for each paragraph. Check each paragraph for unclear ideas or sentences that are not connected to the topic

Comparing Globalisation In 19th And 20th Century

Comparing Globalisation In 19th And 20th Century Globalisation is a trend that has developed enabling people around the world to communicate with each other much more easily. This has opened up a global market place where companies engage in worldwide manufacturing, marketing and distribution of their products and services. Nayyar (2006) defines globalisation as a process associated with increasing openness, growing economic interdependence and deepening economic integration in the world economy. Nayyar (2006) goes on to say that economic openness is not simply confined to trade flows, investment flows and financial flows, it also extends to flows of services, technology, information and ideas across national boundaries. Globalisation is prehistoric; according to Nayyar (2006) globalisation is not new. Ideally the result of globalisation is the integration of societies and economies and toppling of national barriers. When this happens, the division of labor rises in an international scope and multilateral trade in goods and services elevates, as well as capital flows and cross border business investments. According to Nayyar (2006) the two period of globalisation, the nineteenth and twentieth centurys, are similar in four ways: the absence or the dismantling of barriers to international economic transactions; the development of enabling technologies; emerging forms of industrial organization; and political hegemony or dominance. There were almost no restrictions on economic transactions across borders as the four decades from 1870 to 1913 were the age of laissez faire.. This was followed by three decades of autarchy and conflict during which international economic transactions were progressively constrained by barriers and regulations. However, during the second half of the twentieth century globalisation followed the sequence of deregulation. Trade liberalization came first, which led to an unprecedented expansion of international trade between 1950 and 1970. The liberalization of regimes for foreign investment came next and there was a surge in international investment which began in the late 1960s. Financial liberalization came last, starting in the early 1980s. Both phases of globalisation coincided with a technological revolution in transport and communications which brought about an enormous reduction in the time needed, as also the cost incurred, in crossing geographical distances. The second half of the nineteenth century saw the advent of the steamship, the railway and the telegraph whilst the second half of the twentieth century witnessed the advent of jet aircraft, computers and satellites. Emerging forms of industrial organization, in both phases, played a role in making globalisation possible. In the late nineteenth century, it was the advent of mass production which was characterized by a rigid compartmentalization of functions and a high degree of mechanization. In the late twentieth century, the emerging flexible production system, shaped by the nature of the technical progress, the changing output mix and the organizational characteristics (based on Japanese management systems), forced firms constantly to choose between trade and investment in their drive to expand activities across borders. The politics of hegemony or dominance is conducive to the economics of globalisation. The first phase of globalisation from 1870 to 1913 coincided with what has been described as the age of empire, when Britain more or less ruled the world. The second phase of globalisation beginning in the early 1970s coincided with the political dominance of the US as the superpower. Nayaar (2006) also highlights important differences between both the phases of globalisation in respect of trade flows, Foreign Direct Investment (FDI) flows, financial flows and labor flows. During the period from 1870 to 1913, a large proportion of international trade was constituted by inter-sectoral trade, where primary commodities were exchanged for manufactured goods. This trade was, to a significant extent, based on absolute advantage derived from natural resources or climatic conditions. During the period 1950-75, inter-industry trade in manufactures, based on differences in factor endowments, labour productivity or technological leads and lags, constituted an increasing proportion of international trade. Since 1970 intra-industry trade in manufactures, based on scale economies and product differentiation, constituted an increasing proportion of international trade. Further now about one-third of the international trade is estimated to be intra-firm trade, that is, trade between affiliates of the same company located in different countries. The composition of intra-firm trade has undergone a change, characterized by a steady decline in the importance of primary commodities and an increase in the importance of manufactured goods and intermediate goods. There is also a marked difference between the two phases in respect of the spatial and sectoral distribution of FDI. During the second phase, its distribution between the developed and developing countries was more uneven than in the first phase. However, the 1990s witnessed an increase in the share of developing countries in FDI inflows, although still behind the developing countries. A small number of countries absorb the lions share of the FDI flows to the developing world. In 1913, the primary sector accounted for more than half (55%) of the long term foreign investment, followed by trade and distribution (30%), and the share of the manufacturing sector was very low. (10%). In the early years of this decade, the service sector accounted for about two-thirds of the FDI inflows. In the early twentieth century foreign investment was only long term. Two thirds of it was portfolios, while one third of it was direct although portfolio investment has risen sharply in the 1990s. In the last quarter of the nineteenth century, capital flows were a means of transferring investible resources to underdeveloped countries or newly industrializing countries with the most attractive growth opportunities. In the second phase, these capital flows were destined mostly for the industrialized countries which have high deficits and high interest rates to finance public consumption and transfer payments rather than productive investment. During the first phase of globalisation from 1870 to 1913, the object of financial flows was to find avenues for long-term investment in search of profit. During the second phase of globalisation since the early 1970s, financial flows are constituted mostly by short-term capital movements, sensitive to exchange rates and interest rates, in search of capital gains. The fundamental difference between two phases of globalisation is in the sphere of labor flows. In the late nineteenth century, there were no restrictions on the mobility of people across national boundaries. Passports were seldom needed. Immigrants were granted citizenship with ease. Between 1870 and 1914, international labor migration was enormous. The only significant evidence of labor mobility during the last quarter of the twentieth century is the temporary migration of workers to Europe, the Middle East and East Asia. The present phase of globalisation has also found substitutes for labor mobility in the form of the trade flows and investment flows. For one thing, industrialized countries now import manufactured goods that embody scarce labor The first phase of globalisation in the late nineteenth century was characterized by an integration of markets through an exchange of goods that was facilitated by the movement capital and labor across national boundaries. The second phase of globalisation is characterized by an integration of production with linkages that are wider and deeper, except for the near absence of migration. It is reflected not only in the movement of goods, services, capital, technology, information and ideas, but also in the organization of economic activities across national boundaries. This is associated with a more complex- part horizontal and part vertical-division of labor between the industrialized countries and a few developing countries in the world economy. References Nayyar, D. (2006) Globalisation, history and development: a tale of two centuries, Cambridge Journal of Economics, Vol. 30, No. 1: 137-159.

Evaluating Employee Retention Essay

High employee turnover rate has been considered as one of the highest drivers for direct and opportunity cost to rise for companies. In the Coca Cola Retailing Research, Blake (2000) estimates that about US$5. 8 billion annually are lost in the supermarket sector alone due to employee turnover. More importantly, this figure significantly reduces the profitability of firms to as much as 40%. Hence, the mantra that human resources or people are still the most important factor of production considering the improvements in technology is still a prevalent notion among scholars and businessmen alike (Buckingham and Vosburgh, 2001). With this in mind, human resources management is driven to attract and retain employees that have proved valuable in the company over periods of time. Essentially, employee retention and the reduction of employee turnover rate had been studied in the literature and in company case studies. However, despite the numerous studies provided to us, there are still debates that need to be resolved on the most potent factors that would make employees stay. This paper presents a case study of Coca Cola Company particularly its program on employee retention, the issues and challenges that it faces in terms of employee turnover, its impact on the company both financially and operationally, and the improvements that can be made in order to enhance the employee retention program and reduce turnover rates. Employee Retention: Factors and Drivers Employee retention on a macro-scale had generally been impacted by the external economy in general and the trends in the business sector (Frank and Taylor, 2004). On a micro-scale however, employee retention are affected by programs/policies of the company, wages and benefits in relation to its competitors, skills, training and promotion, employee motivation and satisfaction as well as other factors that are internal to the company. For instance, while the US economy had been considered at a low level in recent years, employee turnover had been maximal in the periods 2002-2003 because of the downsizing that had been prevalent in US companies. Add to this factor, employee discontent according to the survey of the Conference Board (2003) had been highest since 1995 and that employees are only waiting for a market recovery to look for other jobs (Kaihla, 2003). Hence, aside from these factors that needs to be considered by companies, employee turnover affects the cost of the US economy by at least US$5 trillion annually (Journal of Business Strategy, 2003) and reduces stock prices and earnings to about 38% (Sibson, 2000). Consequently, aside from the financial impact of employee turnover, employee retention has been directly correlated by Dresang (2002) to increase productivity as well as customer loyalty. Employee retention had been attributed to several factors; let us first analyze the factors identified in the literature to contribute employee retention and reduction of turnover. In Coca Cola, the top retention drivers between hourly employees and management employees were identified as follows. For the hourly employees, providing directions, availability of equipment and supplies and immediate supervision were identified as drivers for retention while for managers, it would be organizational direction, training and advancement (Frank, 2000). These factors validate earlier studies that front-line leaders play a critical role in the retention of employees (SHRM Retention Survey, 2000). This is because poor management would drive employees away because of their perceived lack of importance accorded to them by the company. Consequently, this result implies that managers being critical factors in employee retention would need to be improved in terms of training and professional development programs by the company (Gantz Wiley Research, 2004). Hence, Frank (2000) asserted that organizational and management practices as drivers for retention have specific and identifiable goals. First, for employees working by the hour, tactical practices in accomplishing their jobs effectively are considered to be important. This is because these employees derive their satisfaction and motivation from the feedback that they receive from their immediate supervisors. Hence, their execution of their specific tasks is important in order to make them feel important in the company. However, management retention had been attributed to the strategic direction of the company as well as their professional training and advancement. This implies that managers are more likely to stay in a company with a training program that would encourage professional growth as well as a program with concrete promotion guidelines. Coca Cola Employee Retention Program Coca Cola, the leading manufacturer of carbonated drinks had been considered as one of the top employers not only in terms of providing hundreds of jobs worldwide but also in strategically managing its employees turn over rate. The advocacy of Coca Cola rests on the productivity and skills of its employees in providing quality products and assuring quality control of its merchandise. In return, Coca Cola incorporates in its core policies the Workplace Rights Policies which includes a holistic view of its workers ensuring that its policies serves up to the promotion of a holistic employee growth (The Coca Cola Company, 2008). Unlike PepsiCo, Coca Cola allows unions and provides for a collective bargaining in order to protect the rights of its employees. This has led to the unorganization of the employees of PepsiCo compared to that of Coca Cola- while there is a high level of collective bargaining in Coca Cola, PepsiCo has not provided its employees the venue to air its grievances. However, compared to PepsiCo’s Taste to Success employment brand statement and its numerous programs for employee retention such as â€Å"Culture of Shared Principles†, â€Å"Ability to Make an Impact†, â€Å"Quality People† and â€Å"Passion for Growth†, Coca Cola’s campaign for employee retention is still in the process of evolving. For one, the 2000 research employed by Coca Cola to determine the cost and the opportunities for employee retention, the company had redeveloped its corporate strategy to specifically address its management and rank and file retention issues by changing its strategy. For instance, Coca Cola has the â€Å"talent magnets† program in celebration of managers who are able to attract outstanding talents in their team. This is done by Coca Cola in order to provide advancement not only for managers but for rank and file employees as well. Consequently, Coca Cola in its mission statement includes four components indicating the responsibility of managers to develop the rank and file employees. For example, in Coca Cola’s Competency/Success Model, it targets the self and others, rank and file employees would provide the necessary feedback on their manager regarding their development success and compensation based on their skills. Based on these criteria, the managers are then judged by upper management (Olian, et al, 1998). Hence, the focus of Coca Cola is on teams and not on individuals alone. This is similar to the practices in PepsiCo but to a lesser extent. For instance, PepsiCo still values individual achievement and skills in its promotion and advancement. In terms of compensation and pay, both PepsiCo and Coca Cola had been criticized by foreign countries by providing below level compensation for employees. In the United States, typically, the wage of same level employees is the same for both. Consequently, the benefits for regular and part time employees are comparable with one another. Moreover, both companies provide training and development programs, diversity and multi-cultural work environment as well as programs for advancement. However, the primary difference is that Coca Cola had been considered to fundamentally more sound strategically than that of PepsiCo. For instance, while PepsiCo offers different variety of products in the beverage and snack sector and have declared bankruptcy in the past, Coca Cola’s sound management fundamentals have prevented it from investing in risky ventures. While both PepsiCo and Coca Cola had been fraught with workers issues particularly in low salaries and wages as well as the issues of better rights for workers, Coca Cola had fared well better in retaining its employees because it is more stable than PepsiCo (which had closed 4 plants in New Jersey) and because of the presence and tolerance of unions. To a large extent, unions in Coca Cola had perennially protected the rights of its workers and hence, led to lower employee turnover in Coca Cola. Valid and Effective Employee Retention Program Employee retention programs while it should consider external aspects of its operations such as the economic performance of the country, the wages and salary in that specific country as well as competition, internal factors within the human resource sector would also needed to be re-examined particularly in determining the means to retain employees. It should be noted that skillful employees and managers are considered to be precious and scarce commodities in today’s employment world. This is the reason why companies such as Coca Cola reserves rewards for its top performers in selling and marketing its products. For instance, those who have shown superior performance than others are given career advancements readily, trainings and professional development growths are available and they have better bargaining power. Hence, these workers can demand for better work conditions particularly in balancing their work-family life. This however, does not only apply for managers but also for rank and file employees. While priorities would differ for the two classes, the need to be valued by the organization is important. This is manifested in terms of pay and wages, benefits, promotions, advancement, work condition as well as the need to know their role in the organizational mission. Hence, employee retention programs should focus on the internal and external factors of employees: pay, benefits and promotion as well as the working relations of the employees on their immediate superiors and co-workers as well as in providing a better consideration for themselves as a person and not just a worker. For instance, feedback from the manager are important considerations from rank and file employees (Frank, 2000) implying that it is no longer the salary and compensation that matters for retention but also on the relationship of subordinates to superiors. Hence, programs on employee retention should focus on managers’ ability to improve their subordinates and drive their team to achieve. This would imply that advancements would also focus on the ability of the managers to train and improve the position and compensation of their employees. Finally, the ability of companies such as Coca Cola to provide a better balance in the life of the employees by providing opportunities for better working conditions such as work-life balance can improve the loyalty of the employees as well as enhance their productivity (Younger, Smallwood and Ulrich, 2007). Method in Determining Effective Employee Retention Program The Coca Cola Study had proposed thirteen (13) scales for management and organizational practices that can serve as a benchmark in evaluating the employee retention program: 1) organizational direction; 2) immediate supervision; 3) providing directions; 4) providing feedback; 5) equipment and supplies; 6) working conditions; 7) work organization; 8) pay administration; 9) pay and benefits; 10) advancement; 11) impact; 12) training; and 13) capacity (Frank, 2000). These scales serve as a benchmark in evaluating current employee retention programs in Coca Cola. Accordingly, these factors would be critically assessed in the next section using the Coca Cola study in order to determine the areas where Coca Cola had improved since the study was completed in 2000 and the areas that would need improvement. It should be noted that this scale system is specific to supermarket products and may not reflect with other companies. Discussion and Recommendations for Effective Employee Retention Program in Coca Cola Traditional conception on employee retention had been that: increase the pay and employees will stay. However, in current business environment where skilled workers are offered with numerous job offers, the scope of employee retention had also broadened. First, employees now consider the organizational direction of the company. As shown in the survey of Coca Cola, organizational direction is important for managers in order to determine their goals in line with that of the company. A company with good fundamental organizational goals is more likely to retain managers who align themselves within the organizational direction. However, this is not only the case for managers as implied in the second factor which is immediate supervision. Managers and supervisors are tasked with the need to improve on the quality of its supervisory capacity in order to retain rank and file employees. In Coca Cola, managers who are in charge of a team are judged not on their individual performance but on how the team had performed. Hence, effective supervision and management are critical in determining the success of employees both in the managerial as well as the rank and file level. The principle is no longer that managers will rise alone but rather, rank and file employees will rise alongside their manager. This is also the core policy of Coca Cola’s self and others program wherein one is not only responsible for his or her self but for the team as well. Third, providing directions is no longer the monopoly of supervisors and managers. Typically, the vertical or line hierarchy within business firms had been replaced by horizontal and a more interactive workplace. Rank and file employees now have the freedom for better independence as well as in providing input to the management. In Coca Cola, this is no longer prohibited but is encouraged in order to gain fresh and better insights to improve on performance. The principle behind this is that those who do the work are better equipped with the knowledge on how to improve it. Along this line is the recognition that rank and file employees can provide direction to the organization as well which is the fourth factor in the item- providing feedback. The feedback system in Coca Cola does not rest solely on the discretion of the managers but also on the records of the employee. However, the feedback given by the immediate supervisors are important in determining the capacity and skills as well as the importance accorded to an employee. At Coca Cola, since teams are driven to produce, supervisors and managers can provide immediate feedback. Positive feedback gives the sense of accomplishment for employees as well as the feeling that they are valued members of the organization. This in essence, increases employee motivation and satisfaction. The fifth and sixth factors include availability of equipments and supplies as well as working conditions of the employees. It should be noted that in order to accomplish a task, materials necessary would have to be available. For rank and file employees, the management that ensures that these materials are available is tantamount to the perception that the work they accomplish is important in the organization. This leads us to the sixth factor which is working condition. The work environment has been considered as one of the more important determinant of employee motivation and hence, employee retention and turnover. Those employees whose work is not recognized are more likely to be unmotivated. Coca Cola for its part has better working conditions than PepsiCo. However, working conditions outside of the United States would need to be improved because of their poor managerial and plant support. In the United States, these issues are less pressing. Thus, it is the responsibility of the top management to ensure that despite the need of workers in third world countries of work, its improvement would cut the rate of employee turnover and increase the possibility of retention. Seventh, one good way to improve employee retention is for the Coca Cola management to use a slogan that will serve as the company’s goal similar to that of PepsiCo. Many corporations use the slogan, â€Å"People are our most important asset. † Similarly, many companies contend that their values support teamwork, integrity, respect, and dignity. While this may sound good, it takes hard, consistent work in policies, statements and actions for employees to believe it. Eight, the classic pay philosophy is to provide wages that will attract and retain qualified employees. Being aware of the wage rates in an organization’s external market place is critical to Coca Cola’s success for retaining employees. The case of the Coca Cola’s wage scale is low; the company has already lost employees to other sectors that pay a higher rate. Hence, there is a need for improvements in the compensation by improving on performance pays. For instance, lump sum merit awards on the other hand provide financial recognition for an individual’s job performance in lieu of merit-based salary increases. This is an effective way to provide financial recognition, especially to those individuals whose base salary is already relatively high.

The Role Of Political System On Administrative Law And...

St. Louis University v Masonic Temple is a classic example that highlights the role of political system in administrative law and judicial decision making. One cannot ignore or underestimate the role politics can play in decision making. The financial routes through which funding programs operate have an underlying political will and motivations and courts give effect to it through favorable decisions. In this case, the city had passed an ordinance to establish the necessary Tax Increment Financing or TIF assistance for the arena and other redevelopment projects. The ordinance expressly stated that the lawmakers believed that St. Louis University (SLU) continues to â€Å"serve as invaluable educational and cultural entities within the area† raising the question of political backing in awarding the TIF only to St. Louis University. If the court ruled against not only St. Louis University but the St. Louis politicians (who expressed an explicit interest in awarding the TIF to SLU), there would have been a major political fallout. Interestingly, courts in such cases tweak and interpret the law to appease both the political entities and the public even in the face of blatant violation of the law. It is pertinent to understand the reasoning behind why courts on multiple occasions decide in favor of churches/religious institutions despite blatant violation of law. 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As challenges to policies deemed necessary for POGG percolate up the judicial hierarchy, legitimization by the judiciaryRead MoreSuggestions For Reducing Corruption Of Public Organizations1284 Words   |  6 Pages4 Suggestions for Reducing Corruption in Public Organizations Lots of factors can have effects on the degree of government corruption, thus it need a sophisticated system to combat corruption. This part will give some suggestions for controlling the degree of corruption to the largest extent. 4.1 Reasonably Undertaking Responsibilities The government should reasonably shoulder own responsibilities. Considering what has been discussed above, the government with more responsibilities would have