Climate Change And Economic Policy

Climate change is defined as â€Å"Change of climate which is attributed directly or indirectly to human activity that alters the composition of the global atmosphere and which is in addition to natural climate variability observed over comparable time periods†(Bruno and Mehmet 2010). Modern methods of production create greenhouse gasses as a negative externality via the market failure and government intervention is needed to rectify the situation. Climate change is an issue for the Australian government as it needs to intervene to correct the market failure caused by the free markets inability to provide property rights to mitigate damages caused by the negative externality. (Calhoun 2010) The greenhouse gas externality is a by-product of the production of goods and services via the over-production of emissions. Dr Peter John Wood argues that† climate change is an indisputable threat† and on that basis, as well as the world stage Australia has taken the reins in acting upon climate change. An externality is defined as† are the unintended consequence of one economic agent’s economic activity that affect another agent’s economic activity, but which are not adequately priced through the market (Sonia and Jeff 2011)†. This is also known as market failure and requires government intervention to be able to rectify the problem due to a lack of property rights and correct mitigation for parties involved with the transaction. In this case, one form of the market failure is because the cost of CO2 is not factored into the transaction price. The Gillard government continued a legacy that was started with the Howard government back in 2007 that saw a Carbon Emissions Trading scheme take part in the Australian government to tackle Australia’s greenhouse gas emissions (Chris 2011). The Carbon tax was implemented on June 1st 2012 and has been controversial amongst politicians and economists alike according to Clive’s article â€Å"Australia's Carbon Tax: A Sheep in Wolf's Clothing†. The steps taken to implement a policy should be understood first before critiquing from different viewpoints. The four major points of policymaking are: 1. Specify the goals of policy 2. Identify the targets 3. Specify the policy instruments 4. Model the economy linking the instruments to the targets Using this framework, the goal’s of the policy are to mitigate damages caused by the production of greenhouse gasses on the (global) environment on a national scale and decrease the amount of pollution via increasing the price of polluting. The targets of the policy are the agents involved (Firms producing pollution, environment and households) with the transactions. Firms are the largest creators of the pollution and the households are directly affected by price increases, therefore their welfare post-tax needs to be considered in a socially acceptable policy. The policy instruments include subsidies to the households most affected by the increases in prices of amenities as well as the Pigovian Tax on polluting (Energy 2012). Lastly, the model that directly links the economy to the instruments proposed can be shown below. Tax brings the externality into equilibrium with the social cost. The amount of gain to the social benefit is the darker area and is also the taxation revenue collected on behalf of the government. This also decreases output by the difference in Original output-New output. This can also be shown on a Supply and Demand graph. The graph to the right illustrates the effectiveness of the tax on the existing market price and therefore reducing the quantity of pollution emitted. This tax is directly placed on the top 500 polluting firms in Australia which account for the majority of the pollution via production. The Department for Climate Change and Efficient Energy published their â€Å"Forth Assessment Report† outlining that â€Å"There is clear evidence that our climate is changing, largely due to human activities†. One can infer that the government is acting morally and taking partial responsibility for these human activities, hence action for change and mitigation. Market failure is defined as the inability of the market being able to deliver an efficient level of goods and or services (Calhoun 2010). This is an important aspect when determining what aspects of a policy are vital in addressing the issue at hand, because the situation of pollution is a non-Pareto optimal situation due to the negative externalities created in the transaction between agents. The government’s intervention due to the market failing is justified by its role in the G8, Kyoto Protocol and its response to the public on the matter (â€Å"Australia to have leading role in carbon mitigation† 2007). Another reason is that property rights are not defined clearly with the environment, therefore the government intervention to make the Marginal Social Cost equal the Marginal Social Cost via a Pigovian tax, decreasing the amount of negative externality produced (greenhouse gasses).(Bruno and Mehmet 2010) Macro-economically speaking, this issue impacts both Australia’s macroeconomic goal of efficient resource allocation and sustainable economic growth. Due to high public opinion on green alternatives and clean production, changes in consumer preferences will mean that some goods and services provided using traditional fossil fuels or unsustainable methods may be boy-cotted or fall second preference to ‘green goods’(Kathleen 2012) The Efficient resource allocation goal of Australia addresses â€Å"†¦where resources are allocated in the most efficient manner†(Weng 2008). The environment is a common resource and traditionally has not been defined to any specific owner. Firms may utilise the environment (clean air, sunshine and or clean water) as a factor of production, examples may include Personal Trainers or tour guides. With a market failure existing, it renders the goal incomplete as there is an excess of pollution and undersupply of environment as it is a rival good. Either the polluters must reduce their output of pollution or they must mitigate the affected agents. This causes a problem in the regard, whom is affected by the pollution and by how much does the affected agents need to be mitigated for. Sustainable economic growth in the long term is impacted by climate change. Not only will Australia be affected by the hypothesised changes to temperature for standards of living, but the changes may affect agricultural output and goods demanded by countries importing (supporting) clean production methods. Australia, by implementing policy change enables the economy to be in a better position to respond to act with funds allocated via the policy impact (â€Å"Australia: Australia Prepares for Carbon Tax† 2012). Comparing the current Carbon Tax (Clean Energy Bill) to alternatives that have been proposed such as Carbon Trading Schemes and Subsidies for Clean Investment have both advantages and disadvantages (Calhoun 2010). Australia’s Carbon Tax initially is a fixed price of $23 per Metric Tonne of Carbon Dioxide emitted from the top 500 polluting companies in Australia(Harris 2012). This in its simplicity is a Pigovian Tax, which is used to deter consumption/production of a good or service that causes the negative externality. Simultaneously the Indirect tax signals the taxed firms that they should spend investment capital on ways to lower their output of CO2 emissions (Carrie 2011). Pigovian taxes are designed to increase the price of the good that causes the negative externality by the amount that best reflects the cost to society in the production of the good which will internalise the effects of the externality (Carrie 2011). Examples of these in Australian society include the Alco-Pop tax and tobacco tax. In the case of the Carbon Tax, the good being taxed is pollution and the parties being mitigated are the Australian government on behalf of the environment in which it is representing, in effect the environment is gaining property rights in this explanation. The Pigovian tax, when applied will cause a reduction in the level of pollution due to the cost added. This will vary from firm to firm due to the elasticity of the cost to pollute. It is safe to assume that all firms are elastic with pollution expenses; therefore the economics of the tax are sound. Pigovian taxes have been praised for their simplistic approach to combating both losses of competitiveness due to inefficient methods of production and on goods themselves which are non-essential for consumption when viable substitutes are available according to Harris’s economic survey in 2012. Examples include using solar power on mine sites instead of Gas or Coal power. Pigovian Taxes however are not ideal in the case of Carbon Leakage, whereby firms choose to produce their goods offshore in countries that are not yet or not participating in Carbon Reduction. It reduces Australia’s carbon footprint, however the loss of production in Australia mean relative to before the tax, there is a reduction in output. (Dellaware 2011). By contrasting these to alternative methods to combat climate change such as an Emissions Trading Scheme (Cap and Trade) or the Carbon Offset system. All theoretically are able to reduce the level of the negative externality, however they all have different dynamics to each other and need to be applied using the framework aforementioned in the essay. The Cap and Trade system allows for the Coasian Bargaining of the right to emit greenhouse gasses as part of production of a firm. These permits would be of a set supply, and would limit firms to a ‘cap’ of pollution. These would be traded in the open market meaning that the market subject to demand and elasticity by a firm, determines the price of the permit. This would encourage firms to innovate and reduce the number of permits needed to produce, or be more efficient with the given quota of pollution per year.(Kathleen 2012) Advantages of the Cap and Trade system mean that the total level of greenhouse gases are controlled, IE a set amount per year meaning that it is easier to attain goals from the Kyoto Protocol. International trading markets are also proposed and feasible meaning that there is greater competition for permits which leads to more efficiency domestically. Firms that are unable to compete or innovate into cleaner greener methods are either absorbed by larger more efficient and environmentally viable companies or liquidate, meaning less pollution output. Another advantage is that there is little regulation and or further government attention required to maintain the Cap and Trade system. Because the market forces determine prices between firms, the need for a middle man is removed. Comparing this to a Carbon Tax, where constant auditing, monitoring and enforcement is both time consuming and expensive from a tax payers perspective. Comparing the two graphically below show the changes in price and quantity in the strict control of either supply of increase of price. The Carbon tax is indirect, it controls the price movements, which affect the quantity, and the Cap and Trade system controls the supply, which then determines the price. The biggest disadvantage to not controlling the price of pollution as oppose to the quantity is that it does not promote efficient investment on clean alternatives to production and instead causes prices to rise of the permits, allowing larger companies to purchase the right to continue polluting and drive out smaller less profitable companies, provided they can’t sustain operation by selling excess permits to excessive polluters. Graphically, they yield the same result however; Clive argues that the amount of red tape needed to maintain the Cap and Trade System is not viable. Introducing the Carbon Offset scheme, means that carbon offsets are purchased which in turn mitigates the marginal private cost of the firm to equilibrium level. Firms can only pollute according to their offset amount and has been successful in Europe with 5.5 Billion dollars of offsets traded according to Bruno and Mehmet’s paper on Governance and the Carbon impact. Advantages exist in the offset scheme whereby it guarantee’s firms to take positive action/investment due to money spent on offsets directly in the form of buying credits from firms specific for reducing pollution and or investment on re-forestation and cleaner methods of production. Other arguments exist stating that having a Cap of pollution will force in-efficient firms to find the lowest cost method to reduce their pollution. Again, like any alternative to the Carbon Tax, much more bureaucratic procedures, monitoring costs and governing bodies are required to manage such a proposal (Oh 2007). 1. Similarities exist between the two policy options in that both require a base measured level of pollution to which caps and prices can be compared 1. Both systems will generate revenue via the increase of the Marginal Private cost which can be distributed via the governing body. 1. Both systems will require a governing body to standardise and monitor activities to be equitable (International-Emissions-Trading-Association 2011) Using this information, the policies will affect different groups of individuals differently. The Carbon Tax will have some impact on households, but greater on the top 500 firms. Understanding how it will affect each party will enable a better understanding of the Pareto Efficiency concept. Households under the Carbon Tax will be charged more for amenities and certain activities such as air travel. Using the graph below it is clear that electricity is the largest producer of greenhouse gases and will have the largest impact via the tax. increase of costs of using electricity, any household that earns less than 80,000 dollars a year will benefit from subsidies and household assistance packages from the Liberal Government (Energy 2012).Households will also gain in subsidies and other cleaner initiatives from the government via the revenue collected from the tax which will increase their standard of living, proposed by the new energy reforms(Energy 2012). Linking back to Figure 1, the gains in Social Benefit are the largest gains that the households have, which economically speaking should be a new Pareto optimum specific to householders. Firms on the other hand, if subjected to the tax will have an increase in costs relative to the $23 per metric tonne of CO2 emitted. There is also the added cost of administration fees and loss of investment due to higher costs. Other costs that may be included are changes in capital. Pigovian taxes are aimed to have a distortion effect, decreasing the amount of CO2 emitted, changing what firms use to produce and furthermore where future capital investment may be directed (Bruno and Mehmet 2010). Firms from the impact of a Cap and Trade system will be partaking in Coasian Bargaining. This system has been used in the European Union and has shown dramatic decreases in the levels of CO2 by firms (International-Emissions-Trading-Association 2011). Due to the nature of the market, firms will bid and enter a price war against each other that will drive firms to have the lowest operating cost to save on purchasing permits. Firms that do not use the entire permit’s quota are able to bid off their remaining excess to firms whom can afford to pollute, or can’t afford to innovate into cleaner methods of production. Production, if the firm is pollutant dependant will be affected due to a rise in fixed and variable costs and may decrease output (Gilbert 2007). If the firm is not heavily reliant on pollution, it will see increases in its profits due to the revenue gained from trading the permits. The Cap and Trade system promotes production efficiency according to Gilbert Metcalfe’s proposal for a US Cap Swap in those methods that reduce CO2 output cost less via the tariffs placed. The Cap and Trade system from a household’s perspective will be similar to that of the carbon tax, however a time lag may be present due to firms having a time period in which they can allocate their pollution as opposed to an indirect tax. Each policy suggestion from an economic perspective has its own merits and weaknesses and need to be considered when creating a policy that affects both households and firms. The policy must be fair, equitable and efficient to all parties involved. By comparing the implemented Carbon Tax with the feasible alternative, the Cap and Trade system, the different viewpoints of firms and households are understood.

Type I vs. Type II Errors in Hypothesis Testing

Type I vs. Type II Errors in Hypothesis Testing The statistical practice of hypothesis testing is widespread not only in statistics but also throughout the natural and social sciences. When we conduct a hypothesis test there a couple of things that could go wrong. There are two kinds of errors, which by design cannot be avoided, and we must be aware that these errors exist. The errors are given the quite pedestrian names of type I and type II errors. What are type I and type II errors, and how we distinguish between them?  Briefly: Type I errors happen when we reject a true null hypothesisType II errors happen when we fail to reject a false null hypothesis We will explore more background behind these types of errors with the goal of understanding these statements. Hypothesis Testing The process of hypothesis testing can seem to be quite varied with a multitude of test statistics. But the general process is the same. Hypothesis testing involves the statement of a null hypothesis and the selection of a level of significance. The null hypothesis is either true or false and represents the default claim for a treatment or procedure. For example, when examining the effectiveness of a drug, the null hypothesis would be that the drug has no effect on a disease. After formulating the null hypothesis and choosing a level of significance, we acquire data through observation. Statistical calculations tell us whether or not we should reject the null hypothesis. In an ideal world, we would always reject the null hypothesis when it is false, and we would not reject the null hypothesis when it is indeed true. But there are two other scenarios that are possible, each of which will result in an error. Type I Error The first kind of error that is possible involves the rejection of a null hypothesis that is actually true. This kind of error is called a type I error and is sometimes called an error of the first kind. Type I errors are equivalent to false positives. Let’s go back to the example of a drug being used to treat a disease. If we reject the null hypothesis in this situation, then our claim is that the drug does, in fact, have some effect on a disease. But if the null hypothesis is true, then, in reality, the drug does not combat the disease at all. The drug is falsely claimed to have a positive effect on a disease. Type I errors can be controlled. The value of alpha, which is related to the level of significance that we selected has a direct bearing on type I errors. Alpha is the maximum probability that we have a type I error. For a 95% confidence level, the value of alpha is 0.05. This means that there is a 5% probability that we will reject a true null hypothesis. In the long run, one out of every twenty hypothesis tests that we perform at this level will result in a type I error. Type II Error The other kind of error that is possible occurs when we do not reject a null hypothesis that is false. This sort of error is called a type II error and is also referred to as an error of the second kind. Type II errors are equivalent to false negatives. If we think back again to the scenario in which we are testing a drug, what would a type II error look like? A type II error would occur if we accepted that the drug had no effect on a disease, but in reality, it did. The probability of a type II error is given by the Greek letter beta. This number is related to the power or sensitivity of the hypothesis test, denoted by 1 – beta. How to Avoid Errors Type I and type II errors are part of the process of hypothesis testing. Although the errors cannot be completely eliminated, we can minimize one type of error. Typically when we try to decrease the probability one type of error, the probability for the other type increases. We could decrease the value of alpha from 0.05 to 0.01, corresponding to a 99% level of confidence. However, if everything else remains the same, then the probability of a type II error will nearly always increase. Many times the real world application of our hypothesis test will determine if we are more accepting of type I or type II errors. This will then be used when we design our statistical experiment.

Napoleons Fascism Essays

Napoleons Fascism Essays Napoleons Fascism Essay Napoleons Fascism Essay Mussolini had a darwinistic view on life and the struggle of existence. His definition of fascism greatly represents that view and opens up new ideas of life being a duty to serve specific purposes. Mussolini describes fascism as a rule that does not give the majority the right to regulate itself, it believes in heroism and holiness, the rule of divine leaders. Also, he describes that the majority is not capable of ruling, and that nobles are elected through meeting a degree of courage. He explains that there are extreme inequalities in the general public and that political equality, indefinite progress and happiness are all myths. Mussolini viewed the Fascist party as an â€Å"ethic† state, giving it personality, viewing it as an almost divine power. Lastly, Mussolini states the importance of a strong military and dedicated peoples ready to sacrifice for their nation. He emphasizes how disciplined peoples with a strong sense of duty create a stable and orderly nation. His obsession with war lead to the expansion of mass society and leveled social classes. According to Mussolini, his creation of fascism completely rejects ideas of peace and instead to looks to war and sacrifice as the deciding factor between true nobles and cowards. He states that pacifism is an act of cowardice and that war brings forth all human strength and distinguishes between the weak and the dignified. Mussolini explains that fascism views life as a struggle and conquest, furthering his darwinistic views. Mussolini’s claims to restore regulation and use of propaganda fueled people’s hopes in his leadership and promise of order, even if that meant a war-like order. These promises led to Mussolini’s popularity in the first years of his rule due to the people of Italy who were dissatisfied with the anarchy that surrounded them and seemed to believe in any person who promised a restoration of order. In his definition, Mussolini describes that there are great inequalities in the general public as well as in politics. He states that these inequalities are a sort of necessary evil that distinguish between social classes. He also believes that the inequalities in mankind can never â€Å"be permanently leveled† through processes such as universal suffrage and that such processes shouldn’t be put into place because inequalities are beneficial to society as a whole. Mussolini also states that the war between the classes will not be the leading force behind change but should be seen as a beneficial conflict that may bring about order. Through making statements like this, Mussolini was giving the public his truths instead of fabricating his ideas. Mussolini also used traditional values and appreciation of religious beliefs to keep his people united, rich or poor, peasant or worker. In return for his strong sense of values and understanding what role the church played in education as well as in family policy that he portrayed, Mussolini gained acceptance for his fascist tactics from the church who had prior to criticized his policies. This approval from the church furthered his acceptance and popularity from the general public. Mussolini’s separation of the social classes in fact did the opposite and leveled them in society as well as on the battlefield. In the definition, fascism is described as a rule that represents solely the people of Italy, whom were gaining power and again rising after a downfall. Mussolini explains that a great nation demands discipline as well as a sense of sacrifice and duty. He states in what ways militarized politics are beneficial to a society and how total dedication to ones nation is an absolute necessary in maintaining a powerful state. This is evident in his making criticism of the state a criminal offense which in turn led to his wiping out of any parliamentary opposition. Mussolini’s attacks on newspaper offices and striking workers were brutal yet gave Italians a sense of order in their country. He explains in what ways a Fascist state leaves some freedoms to its people yet maintains a sense of organization and that an undisciplined nation is useless and harms freedom. He also states that the individual is not the deciding factor but the state is. Statements as such may have shown the people of Italy that they were being oppressed, leading to revolution. Mussolini made his militaristic approaches and authoritarian advances look appealing to his people which in turn lead to a sequence of disastrous events following the war. These events included economic downfalls and strikes throughout Europe, racism, and a surge to global imperialism. Mussolini viewed peace as an undesirable illusion and pacifism as an act of cowardice. These views gave rise to his state power and advocates both inside and out of Italy. Mussolini’s first followers were drawn in by his militaristic rule and his promise of a divine like military. His war obsession drew in veterans as well as the unemployed by promising them a sense of nobility through their sacrifice. In his definition, Mussolini explains the importance of an obedient and sacrificial nation, ready to battle for their country. His rejection of ideas like peace and pacifism gave his followers a sense of an orderly nation, which was greatly needed during that time. Mussolini’s explanation of the separation of social classes as a necessity and something that may create change in the nation. For this reason, Mussolini states that the majority is incapable of ruling itself, and that noble rulers among himself will come forth to create an orderly nation.

What Critical Thinking Is and How to Develop It

What Critical Thinking Is and How to Develop It The concept of critical thinking has been defined in many complex ways, but for young students new to the concept, it can best be summed up as thinking and judging for yourself. When you develop critical thinking skills, you will learn to evaluate information that you hear and process information that you collect while recognizing your implicit biases. You will analyze the evidence that is presented to you in order to make sure it is sound. Recognize Common Fallacies Fallacies are tricks of logic, and understanding them is the best way to avoid falling for them. There are many types of fallacies, and the more you think about them, the more readily you will recognize them all around you, especially in advertisements, arguments, and political discussions. Bandwagon Appeals: Bandwagon appeals argue that you should follow along with something because everyone else believes it.Scare Tactics: A scare tactic is the use of a  scary story as an example to make you more likely to believe some underlying assumption.Appeal to Emotion: An appeal to emotion uses a fiery speech or a tragic story to convince someone to side with you.False Dichotomy: Often there are many sides to an argument, but a false dichotomy presents an issue as one side versus the other. Characteristics of Critical Thinking To become a critical thinker, you must develop a few skills. Recognize assumptions you carry with you. Have you ever wondered why you believe the things that you believe? Do you believe things because you’ve been told to believe them? Step outside your own beliefs to observe from a neutral viewpoint. Be aware of assumptions and learn to self-reflect.Process information honestly. People sometimes pass along information that is not really true (i.e. the fake news crisis).Recognize a generalization. Girls don’t like bugs. Old people are wise. Cats make better pets. These are generalizations. They’re not always true, are they?Evaluate old information and new ideas. There was a time when doctors thought leeches could cure us. Recognize that just because something is commonly accepted, doesnt mean it is true.Produce new ideas based on sound evidence. Detectives solve crimes by collecting bits of truths and putting them all together like a puzzle. One small deceit can jeopardize an investigation. The entire truth-seeking process is destabilized by one piece of bad evidence, leading to a wrong conclusion. Analyze a problem and recognize the complex parts. A mechanic must understand how an entire engine works before s/he can diagnose a problem. Sometimes it is necessary to deconstruct an engine to figure out which part isn’t working. You should approach big problems like this: break them down into smaller parts and observe carefully and deliberately.Use precise vocabulary and communicate with clarity. The truth can be blurred by fuzzy language. It is important to develop your vocabulary so you can communicate truths accurately.Manage emotions in response to a situation or problem. Don’t be fooled by stirred up, emotional plea or angry speech. Stay rational and keep your emotions in check as you encounter new information.Judge your sources. Learn to recognize hidden agendas and bias when you collect information. As students progress from high school into college and graduate school they must develop critical thinking skills in order to carry out research. Students will learn to identify good sources and bad sources, make logical conclusions, and develop new theories.

Enterprise and Entrepreneurial Management Essay - 5

Enterprise and Entrepreneurial Management - Essay Example Moovers and Shakers must focus heavily on internal human resources strategy to ensure that service staff members positively and enthusiastically represent the business brand. Their performances coupled with moderate and competitive pricing will help Moovers and Shakers gain market interest and achieve better profitability. Moovers and Shakers 1. Introduction Moovers and Shakers is a small, mobile food service business that will be serving Coventry, the 12th largest city in the UK maintaining a population of 316,900 as of 2011 (Coventry City Council 2012). Coventry maintains a diverse variety of different commercial centres, stadiums for sporting events, and five colleges and universities that will assist in sustaining profit for the business. Moovers and Shakers will consist of three mobile food carts, staffed in different locations within the boundaries of Coventry operating between the hours of 11am and 8pm, except during special events (e.g. sporting, school functions or arts and drama) in order to capture lunch and dinner crowds; especially commercial professional customers. Moovers and Shakers will carry a limited, yet targeted menu consisting of hamburgers, gourmet franks, nachos and cheese, pretzels and accompanying frozen and fountain soft drinks. What makes Moovers and Shakers so extraordinary will be the moderate pricing structure and an emphasis on food serving flair provided by recruited operators (staff) to make the Moovers and Shakers dining a complete and interesting experience. Moovers and Shakers will be established as a sole trader organisation. This structure will provide the owner with more control over the business, ranging from administration to accounting, and this business structure requires much less regulatory restrictions and licensing necessary for a small start-up. The sole trader format also gives the business owner much more control over exit in the event that the business is not achieving expected profitability or in the event of the owner seeking a different business opportunity. This is due to the fact that the sole trader maintains 100 percent liability for the company. Until the business is able to expand, maintaining profit control for a single business owner is necessary to ensure proper wage accumulation without split capital. The key to success for Moovers and Shakers is food quality and variety, however it is the finesse and flamboyance of food preparation by the mobile cart operators that will gain customer interest and build more allegiance to the Moovers and Shakers brand identity. Mobile cart operators will operate the frozen drink machines and accessories much like a high-class bartender, putting on a display for customers during preparation. These expert employees with the skills for food prep panache will perform a variety of tossing and juggling when assembling the customers’ products, giving Moovers and Shakers a rapid reputation for a stylish food experience. As such, the business plan will focus on recruitment and retention needs as employees will be vital to building a positive brand and how to reduce risk of losing qualified, expert employees. The business plan will also rely heavily on advertising in order to compete. The business plan therefore focuses on models of marketing that are known to bring more buyer interest and how Moovers and Shakers intends to apply these lessons to this innovative mobile food business. The

Organisations and Behaviour Essay Example | Topics and Well Written Essays - 2250 words - 1

Organisations and Behaviour - Essay Example There are multiple organisational structures found both in theory and in practice. Some are rigid like public sector organisations while others are flexible like small scale private enterprises. There are many variables that affect the structure of the organisation. They include its size, age, staff, culture, geographical position and legal, commercial, social and technical environment. These factors all help to shape many organisational structures. In the basic categorisation, there are tall and flat structures. Below is the comparison of these two types. Tall Structure Flat Structure Size Usually Large Usually Medium Age Independent Independent Culture & Environment Rigid & Formal Flexible & Less Formal Geographical Position Independent Independent Hierarchy Strong Weak Span of Control Tight Loose Chain of Command Strict Loose Delegation of Authority Formal Informal Workload Reduced – Decentralised Increased Career Growth Well Defined Vague There are some other structures wh ich are combination of these two structures. The matrix structure is an example. It has different units and each one follows the tall structure independently. On the organisational level, all units form flat structure. Many organisational structures are dependent upon functional units therefore they extract the required characteristic from all types of structures. It is important to mention here that every organisation differs from other one in terms of structure. There can be variety in tall and flat structures as well. Organisational Structure of Apple The organisational structure of Apple is quite different from the ones mentioned in the literature and found in the practice. It is more like a wheel where CEO places himself at the centre. All other departments and functional units are spread around him and he the key focal of all. This structure reflects the overall leadership and operational philosophy in which Steve Jobs believed. He gave his executive team a direct access to hi mself. Through close coordination with them, he established trust and involvement. The same practise was adopted down the line and Apple won loyalty of employees. Steve’s successor disagreed with this organisational structure. His management and leadership approach is quite different from that of Steve. It is more likely that the command of Tim Cook will transform Apple into an organisational having traditional tall structure. The CEP will be at the top while the Executive Team will be next in the hierarchy and reporting to him. Since the structure is the overall design of an organisation, the functional units of Apple will become tall too. In addition to the conventional pros and cons attached with the tall structure, it is also expected that structural transformation will bring certain resistance. It is because change is naturally resisted and the employees of Apple are used to the wheel structure since long. It is also possible that command of authority may be challenged b y the employees and Apple may not expect the same performance as it was in Steve’s time. Comparison of Organisational Cultures The organisational structure influences the organisational culture. The rigid structure promotes strict and formal culture while the flexible structure is more likely seen in an informal culture. Below is the comparison of formal and informal culture that can exist in any organisation. In formal culture, the basic guideline followed throughout the

Microsoft company Analysis Assignment Example | Topics and Well Written Essays - 1000 words

Microsoft company Analysis - Assignment Example Headquartered in Redmund, USA, the operations of Microsoft are spread over 100 countries and the company has a work force of 100,518 around the world. It stood 35th among the Fortune 500 companies of the world declared in 2013 (Microsoft, 2014). Coming to the products and offerings of Microsoft, its operating system, Windows and the Microsoft Office suite are among the popular products. It also develops software applications that find use in mobile phones, enterprise management, storage and server maintenance. Microsoft also has digital music player, Zune; tablets and PCs and video game console, Xbox in its kitty. Microsoft also provides cloud-based services to businesses and consumers, such as Bing, Windows Live Essentials suite, Microsoft Dynamics CRM Online and Azure database services. The company accrues revenues through usage fees and advertising. Additionally, it extends consulting and support services. The company is also into training and certifying the professionals involved in integration and developers (Microsoft, 2014). Standing among the leaders, Microsoft faces competition from Apple, Google and Yahoo for its Windows and online services divisions; HP, IBM and Oracle for its Tools and Server Division; Adobe and SAP for its Business Division and Nintendo, Sony and Apple for its Entertainment and Devices Division. Thus, on the whole, Apple, Google and Oracle are its competitors. The company enjoys huge brand image and loyalty. It is among the well-known brands in the software industry. The products of Microsoft are devised to be user-friendly, and thus easy to use with minimum knowledge in the aspect. Microsoft Word and Excel and Windows operating system have become a part and parcel of every household with a PC in the 1990s and 2000s. Thus, the penetration rate of Microsoft products during this period has been relatively high. Periodic release of updates to existing products and new product development has played a vital role in the