Sociology of Work and Industry

No matter what society one lives in, all human beings depend on systems of production to survive. For people in all societies, productive activity, or work, makes up the largest part of their lives—it takes up more time than any other single type of behavior. Defining Work Work, in sociology, is defined as the carrying out of tasks, which involves the expenditure of mental and physical effort, and its objective is the production of goods and services that cater to human needs. An occupation, or job, is work that is done in exchange for a regular wage or salary. In all cultures, work is the basis of the economy or economic system. The economic system for any given culture is made up of the institutions that provide for the production and distribution of goods and services. These institutions may vary from culture to culture, particularly in traditional societies versus modern societies. In traditional cultures, food gathering and food production is the type of work occupied by the majority of the population. In larger traditional societies, carpentry, stonemasonry, and shipbuilding are also prominent. In modern societies where industrial development exists, people work in a much wider variety of occupations. Sociological Theory The study of work, industry, and economic institutions is a major part of sociology because the economy influences all other parts of society and therefore social reproduction in general. It doesn’t matter if we are talking about a hunter-gatherer society, pastoral society, agricultural society, or industrial society; all are centered around an economic system that affects all parts of society, not just personal identities and daily activities. Work is closely intertwined with social structures, social processes, and especially social inequality. The sociology of work goes back to the classical sociological theorists. Karl Marx, Emile Durkheim, and Max Weber all considered the analysis of modern work to be central to the field of sociology. Marx was the first social theorist to really examine the conditions of work in factories that were popping up during the industrial revolution, looking at how the transition from independent craftwork to working for a boss in a factory resulted in alienation and deskilling. Durkheim, on the other hand, was concerned with how societies achieved stability through norms, customs, and traditions as work and industry changed during the industrial revolution. Weber focused on the development of new types of authority that emerged in modern bureaucratic organizations. Important Research Many studies in the sociology of work are comparative. For instance, researchers might look at differences in employment and organizational forms across societies as well as across time. Why, for example, do Americans work on average more than 400 hours more per year than those in the Netherlands while South Koreans work more than 700 hours more per year than Americans? Another big topic often studied in the sociology of work is how work is tied to social inequality. For instance, sociologists might look at racial and gender discrimination in the workplace. At the macro level of analysis, sociologists are interested in studying things such as occupational structure, the United States and global economies, and how changes in technology lead to changes in demographics. At the micro level of analysis, sociologists look at topics such as the demands that the workplace and occupations place on workers’ sense of self and identity, and the influence of work on families. References Giddens, A. (1991) Introduction to Sociology. New York, NY: W.W. Norton Company. Vidal, M. (2011). The Sociology of Work. Accessed March 2012 from http://www.everydaysociologyblog.com/2011/11/the-sociology-of-work.html

The Emergence Of Market Society - 1573 Words

The whole society has become a market. Societies used to consist of people that were governed by certain ideologies, laws, and practices. Being driven by capitalism, society has developed everything into a commodity, in which we now call a market society. Other socio-economic communities historically had concepts that were different from what is predominated in our present society. The emergence of market society establishes the great transformation from a traditional society to a market economy that has greatly impacted societal workplaces, and beliefs around ideological conditions. The emergence of market society starts with the self-regulating system called the market economy (Polanyi, 1957, P. 68). Self-regulation indicates that the†¦show more content†¦As a result, the Industrial Revolution lead to the great transformation of the market society. The economy grew and people used labour as commodity that endures the greatest societal consequence. Since the market relied on this commodity, human rights were at a disadvantage to the economy. There is no such thing as a self-regulating market because people believe that the economy can build a system based on false commodities (Polanyi, 1957, P. 75). Society faces an economic problem that provides for the material well-being of the society, meaning we produce and exchange the basic necessities in order to survive.â€Å"If mankind does not live by bread alone, it is obvious that it cannot live without bread† (Heilbroner, P. 1). The economic problem arises because human nature struggles for existence which is derived from scarcity (Heilbroner, 1993, P. 4). This problem presents itself critically and uniquely as it is shown through economic history that people struggle for survival. Society has to organize a system of providing enough production for everyone and being able to distribute them properly. Other than market society, there are two other overarching systems found in other societies, tradition and command. For a traditional economy, production and distribution are constructed by procedures designedShow MoreRelatedEmergence of Market Society1713 Words   |  7 PagesThe market today has become so important that socie ty takes it as completely natural. From â€Å"The Economic Problem† Heilbroner describes three main solutions, with the market being one. Furthermore into the market, Polanyis book â€Å"The great Transformation† gives insight on how much society actually allows the market to dominate. To Polanyi a market society is seen as social relations embedded in the economy instead of the economy being embedded in social relations. Examining both of these books givesRead MoreAnalysis Of Karl Polanyi s Societies And Economic Systems 1389 Words   |  6 Pages Transformation of The Workplace In Karl Polanyi’s article â€Å"Societies and Economic Systems†, Karl Rinehart’s ‘Alienation and the Development of Industrial Capitalism in Canada’, and Richard Bendix’s â€Å"Aspects of Economic Rationality in the West†, the emergence and transformation to a market society is displayed through ideological and material conditions. Polanyi attempts to uncover the rise of the market economy by examining past economic structures and the change in the role of commoditiesRead MoreMarket Society1668 Words   |  7 PagesTransformation to Market Society We are living in market society, which is so different from previous societies. In market society, the whole of society is a system of self-regulating market (Polanyi 43). In order to make the market society function, people need to think and act in certain ways(Polanyi 68). For example, people in market society think that economic relations are much more important than interpersonal relations (Polanyi 44). Polanyi calls the emergence of market society â€Å"the great transformation†Read Moresosc1140 essay31658 Words   |  7 PagesTransformation to Market Society We are living in market society, which is so different from previous societies. In market society, the whole of society is a system of self-regulating market (Polanyi 43). In order to make the market society function, people need to think and act in certain ways(Polanyi 68). For example, people in market society think that economic relations are much more important than interpersonal relations (Polanyi 44). Polanyi calls the emergence of market society â€Å"the great transformation†Read MoreEssay on Market Society1680 Words   |  7 Pagesabout the important shift to market society by explaining the material and ideological conditions that help integrate the society to transform into the market society. Firstly, this paper is going to explain the material conditions by showing what characterizes a market society and this also show how the market society differs from the structures of the previous social organization, and also the changes that take place in the workplace due to the shift to market society. Secondly, this paper will alsoRead MoreThe Emergence Of The West1244 Words   |  5 Pagespremodern events supported their emergence. From their plaques in late 14th century to their dominance in by the 19th century, this chronological approach tracked the economic, military and geopolitical changes of the West compared to their Asian counterparts. The chronological approach included the Renaissance, the West’s integration of gunpowder and print products, investments in the British and Dutch East India companies, and their exploration for new land. The emergence of the West began with theRead MoreTransforming Of The Market Society1573 Words   |  7 PagesTransforming to the Market Society We currently live in a market society that is completely different from past societies. In market society, the society is a system of self-regulating market as a whole (Polanyi 43). People are needed to act and think in particular ways for the market society to function (Polanyi 68). For instance, people in market society believe that economic relations are more needed than interpersonal relations (Polanyi 44). Polanyi calls the emergence of market society â€Å"the great transformation†Read MoreThe Populist Movement Essay715 Words   |  3 PagesThe Populist Movement The small farmers of America struggled through many agricultural problems during the late19th century. Their exclusion from the industrializing society, and their lagging in developments set them back from the rest of the country. Through their hardships they found a way to come together and form a political movement that would represent their rights and needs and give them a voice in the political decision making; it was called the Populist movement. However, theRead MoreKarl Marx And Max Weber1324 Words   |  6 Pagesinfluenced many sociologists. Predominantly, both of these theorists’ discussed the effects of capitalism, how it has developed, shaped and changed society into what it is today. Specifically, Karl Marx’s contribution of the bourgeoisie vs. the proletariat class and Max Weber’s social stratification has helped individuals to understand how modern day society has transformed into what it is today. Particularly, this paper will lie out Weber’s theory of social stratification and Marx’s theory of the bourgeoisieRead MoreThe World Organizational And Industrial System Essay1701 Words   |  7 Pageson the efficient and goal attainment of the organization. This led to emergence of neoliberals in the sphere of industrialization which is capital centre policy that enrich the bourgeoisies- the company and industries owners; and make the poor to grow poorer-mostly the w orkers and personnel in the industries. Thus, the organizational structure and system became non-cognizance of workers’ value and welfares. This led to emergence of workers’ associations which transformed in Labour Unions today with

Components of Indian Financial System free essay sample

Economic growth and development of any country depends upon a well-knit financial system. Financial system comprises, a set of sub-systems of financial institutions financial markets, financial instruments and services which help in the formation of capital. Thus a financial system provides a mechanism by which savings are transformed into investments and it can be said that financial system play an significant role in economic growth of the country by mobilizing surplus funds and utilizing them effectively for productive purpose. The financial system is characterized by the presence of integrated, organized and regulated financial markets, and institutions that meet the short term and long term financial needs of both the household and corporate sector. Both financial markets and financial institutions play an important role in the financial system by rendering various financial services to the community. They operate in close combination with each other. Financial System The word system, in the term financial system, implies a set of complex and closely connected or interlined institutions, agents, practices, markets, transactions, claims, and liabilities in the economy. The financial system is concerned about money, credit and finance-the three terms are intimately related yet are somewhat different from each other. Indian financial system consists of financial market, financial instruments and financial intermediation Role/ Functions of Financial System: A financial system performs the following functions: It serves as a link between savers and investors. It helps in utilizing the mobilized savings of scattered savers in more efficient and effective manner. It channelises flow of saving into productive investment. * It assists in the selection of the projects to be financed and also reviews the performance of such projects periodically. * It provides payment mechanism for exchange of goods and services. * It provides a mechanism for the transfer of resources across geographic boundaries. * It provides a  mechanism for managing and controlling the risk involved in mobilizing savings and allocating credit. It promotes the process of capital formation by bringing together the supply of saving and the demand for investible funds. * It helps in lowering the cost of transaction and increase returns. Reduce cost motives people to save more. * It provides you detailed information to the operators/ players in the market such as individuals, business houses, Governments etc. Components/ Constituents of Indian Financial system: The following are the four main components of Indian Financial system 1. Financial institutions 2. Financial Markets 3. Financial Instruments/Assets/Securities 4. Financial Services. Financial institutions: Financial institutions are the intermediaries who facilitates smooth functioning of the financial system by making investors and borrowers meet. They mobilize savings of the surplus units and allocate them in productive activities promising a better rate of return. Financial institutions also provide services to entities seeking advises on various issues ranging from restructuring to diversification plans. They provide whole range of services to the entities who want to raise funds from the markets elsewhere. Financial institutions act as financial intermediaries because they act as middlemen between savers and borrowers. Were these financial institutions may be of Banking or Non-Banking institutions. Financial Markets: Finance is a prerequisite for modern business and financial institutions play a vital role in economic system. Its through financial markets the financial system of an economy works. The main functions of financial markets are: to facilitate creation and allocation of credit and liquidity; 2. to serve as intermediaries for mobilization of savings; 3. to assist process of balanced economic growth; 4. to provide financial convenience Financial Instruments Another important constituent of financial system is financial instruments. They represent a claim against the future income and wealth of others. It will be a claim against a person or an institutions, for the payment of the some of the money at a specified future date. Financial Services: Efficiency of emerging financial system largely depends upon the quality and variety of financial services provided by financial intermediaries. The term financial services can be defined as activites, benefits and satisfaction connected with sale of money, that offers to users and customers, financial related value. Pre-reforms Phase Until the early 1990s, the role of the financial system in India was primarily restricted to the function of channeling resources from the surplus to deficit sectors. Whereas the financial system performed this role reasonably well, its operations came to be marked by some serious deficiencies over the years. The banking sector suffered from lack of competition, low capital base, low Productivity and high intermediation cost. After the nationalization of large banks in 1969 and 1980, the Government-owned banks dominated the banking sector. The role of technology was minimal and the quality of service was not given adequate importance. Banks also did not follow proper risk management systems and the prudential standards were weak. All these resulted in poor asset quality and low profitability. Among non-banking financial intermediaries, development finance institutions (DFIs) operated in an over-protected environment with most of the funding coming from assured sources at concessional terms. In the insurance sector, there was little competition. The mutual fund industry also suffered from lack of competition and was dominated for long by one institution, viz. , the Unit Trust of India. Non-banking financial companies (NBFCs) grew rapidly, but there was no regulation of their asset side. Financial markets were characterized by control over pricing of financial assets, barriers to entry, high transaction costs and restrictions on movement of funds/participants between the market segments. This apart from inhibiting the development of the markets also affected their efficiency. Financial Sector Reforms in India It was in this backdrop that wide-ranging financial sector reforms in India were introduced as an integral part of the economic reforms initiated in the early 1990s with a view to improving the macroeconomic performance of the economy. The reforms in the financial sector focused on creating efficient and stable financial institutions and markets. The approach to financial sector reforms in India was one of gradual and non-disruptive progress through a consultative process. The Reserve Bank has been consistently working towards setting an enabling regulatory framework with prompt and effective supervision, development of technological and institutional infrastructure, as well as changing the interface with the market participants through a consultative process. Persistent efforts have been made towards adoption of international benchmarks as appropriate to Indian conditions. While certain changes in the legal infrastructure are yet to be effected, the developments so far have brought the Indian financial system closer to global standards. The reform of the interest regime constitutes an integral part of the financial sector reform. With the onset of financial sector reforms, the interest rate regime has been largely deregulated with a view towards better price discovery and efficient resource allocation. Initially, steps were taken to develop the domestic money market and freeing of the money market rates. The interest rates offered on Government securities were progressively raised so that the Government borrowing could be carried out at market-related rates. In respect of banks, a major effort was undertaken to simplify the administered structure of interest rates. Banks now have sufficient flexibility to decide their deposit and lending rate structures and manage their assets and liabilities accordingly. At present, apart from savings account and NRE deposit on the deposit side and export credit and small loans on the lending side, all other interest rates are deregulated. Indian banking system operated for a long time with high reserve requirements both in the form of Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR). This was a consequence of the high fiscal deficit and a high degree of monetisation of fiscal deficit. The efforts in the recent period have been to lower both the CRR and SLR. The statutory minimum of 25 per cent for SLR has already been reached, and while the Reserve Bank continues to pursue its medium-term objective of reducing the CRR to the statutory minimum level of 3. 0 per cent, the CRR of SCBs is currently placed at 5. 0 per cent of NDTL. As part of the reforms programme, due attention has been given to diversification of ownership leading to greater market accountability and improved efficiency. Initially, there was infusion of capital by the Government in public sector banks, which was followed by expanding the capital base with equity participation by the private investors. This was followed by a reduction in the Government shareholding in public sector banks to 51 per cent. Consequently, the share of the public sector banks in the aggregate assets of the banking sector has come down from 90 per cent in 1991 to around 75 per cent in2004. With a view to enhancing efficiency and productivity through competition, guidelines were laid down for establishment of new banks in the private sector and the foreign banks have been allowed more liberal entry. Since 1993, twelve new private sector banks have been set up. As a major step towards enhancing competition in the banking sector, foreign direct investment in the private sector banks is now allowed up to 74 per cent, subject to conformity with the guidelines issued from time to time. Conclusion: The Indian financial system has undergone structural transformation over the past decade. The financial sector has acquired strength, efficiency and stability by the combined effect of competition, regulatory measures, and policy environment. While competition, consolidation and convergence have been recognized as the key drivers of the banking sector in the coming years

British Airways Management Environment

Management Environment: British Airways Introduction This report involves analysis of the organisational structure of British Airways and its PEST analysis. Management and its organisation in a public limited company are vital for any company to be successful. There are different types of organisational structures, which are acceptable, in public limited companies.Advertising We will write a custom report sample on British Airways Management Environment specifically for you for only $16.05 $11/page Learn More One such structure is the vertical system where there are a few people at the top who make the company decisions. The number of persons increases at the middle level management and lower level positions. This kind of system is bureaucratic in nature. Horizontal structure is another form of organisation where there are few positions at the top and that increase in the next row. There are few supervisors and many equals at the low level. The final str ucture is the divisional system which involves dividing functions and responsibilities based on specialty and geography. The public limited company to be analyzed in this report is British Airways, which uses the, horizontal structure (Henry, 2008). The figure on the next page represents the organisational structure for British Airways. Figure 1: Organisation structure of British Airways (British Airways, 2009). The chief executive heads the organisational structure of British Airways, and below them, they have customers and operations executive, management board and those directly reporting to the chief executive. They are the brains behind decision making in the company. BelowAdvertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The executive of the company, are those who are involved in implementing the decisions made by the executive. These include the communication, customers and investme nt departments (Rainey Hal, 1997). The executive then passes the mantle to the next level that ensures the running of the company is smooth at the management level. The operators at this level ensure all the technicalities of the company are put in place. The low levels ensure that all the company activities are carried out to the letter to ensure effectiveness. The breaking down of the management levels ensures that, supervisors have a few subordinates below them. This method is effective in that, the supervisors work closely with those below them a move which prove to be highly effective. The inclusion of the customers department in the company helps in better delivery of services because the representatives present the views of the customers. The organisational structure of British Airways reduces the inefficiencies which would have occurred in the execution of duty. The structure ensures that all departments are represented in the top management. This ensures that information m oves freely and efficiently through all the departments (Blau Scheonherr, 1971). The organisation of British Airways like any other company will suffer from different external pressures. The external environment of organisation affects the companies’ decision making and service delivery. The PEST analysis of the company identifies different factors which will affect British Airways’ organisational structure. The factors include political and legal factors, economic factors, social and cultural factors. Political and legal factors that affect the company include terrorism which has been on the rise in the recent years. This has led to the introduction of new security measures by the government. This has created fear among customers thus reducing their interest to travel leading to loss of market by the airline. There have been substantial regulatory reforms which have allowed many companies into the airline business thus increasing market competition. There is also dela yed decision making in the public sector, which affects the airline (Goodsell Charles, 1994). British airways being a public limited company is subject to government funding, but this funding has reduced due privatisation of part of the company. This means that decision making is no longer with the management but with the owners of the company. A major legal factor which affects British Airways is power of trade unions.Advertising We will write a custom report sample on British Airways Management Environment specifically for you for only $16.05 $11/page Learn More The workers trade unions have persistently demanded higher wages and benefits to their members. This has resulted to strikes, for example, those held between August 2004 to August 2005 and which affected normal functioning of the company. Economic factors will arise due to aspects such as the increase in prices of inputs of the airline business. The current insurgence in the Arab world in cou ntries such as Libya, Iraq, and Egypt has driven the prices of fuel very high. This means that, the prices of air traveling will increase thus resulting to fewer people paying for services with British Airways. These will in turn reduce the profits leading to poor service delivery. Another economic aspect is the economic recession which has hit the whole world. This has affected the airline in such a way that, it has to work with a slight budget. The number of customers has also reduced with most of them selecting the cheaper airlines and having fewer holidays. The increased competition from other airlines both local and international has limited further expansion of British Airways due to reduction in yields. There is also high inflation which has increased the cost of living of citizens. This has forced them to cut down their budgets by for example opting for less travelling and leisure so as to save. Social factors that affect the organization structures of the British airways ar e demographic, cultural changes and employer-employee relationship. These changes affect the size of the potential market together with the customer needs. The demographic changes have resulted to a grey generation who spend much on leisure and traveling. This means that the airline will have to out stretch it resources to cater for such a demand. The cultural changes have resulted in changes in lifestyle, tastes and fashions. This has resulted to customer requirement to travel to exciting ventures which might be available at airlines destination. With such changes, the airline has been forced to venture in unfamiliar territory or loss of business. The employee-employer relationship has deteriorated in the recent past with the employees striking so as to have increased salaries and to oppose mass retrenchment. This has led to massive losses to the company (Brassington Pettitt, 2007). Technological changes are other aspects that affect British airways. The technology involved the ai rline sector is expensive and fast moving. The airline lacks the funds to install systems such as check-in-system which helps customers to access information about their travel plans online.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Technology plays a crucial role in airline control and therefore, should be of high quality to prevent disasters. This factor forces the airline to invest in it so as to beat the competition. Changing ad implementing up to date technology ahs however been very expensive for the company. With proper investment in technology, the airline would make the work of their employees and customers easier. British airways has been successful to some extent. The company has registered success though with difficulties. These can be identified from the organizational structure and from the PEST analysis. Successes from the organizational structure are as follows: Division of management into small parts makes execution and implementation of decisions made by the executive simpler. This is because a supervisor has only a few subordinates below him or her. There is free communication between both employees and employers which have reduced on the strike actions resulting to better problem solving mec hanism. The organizational structure ensures that there is smooth running due to division of labor where an individual is aware of what is needed to be done (Golembiewski Robert, 1962). Successes based on PEST are as follows Political factors have led to the increase in security which has turned to be an advantage because customers feel secure when they are traveling with BA. This has led to increase in number of customers and in turn led to a boom in the business. Increased competition has come as a success because BA has worked to improve on it service delivery so as to remain at the top. In terms of the economic factors success is evident in the British Airways’ expansion through merger and privatization where the government has allowed an increase of individual shareholders into ownership of the business. Success from social factors is that the airline has worked hard to expand so as to cater for the growing demand from customers due to increase in population. Technologic ally, BA has highly invested to ensure they keep the same pace with the growing and fast moving technology. This has led to fast delivery of service to customers (Bohte Meier, 2001). Failures The organizational structure has led to delays in decision making and decision implementation (Wilson, 1989). This is as a result of many ranks in the structure where the real implementers are not involved in decision making. People on the ground are not involved in decision making a situation likely to lead in to opposition during implementation. Division of labor is not economical to any company because it limits flexibility in the field of work. Failures as identified from PEST analysis are as follows: Politically the government delays the decision making process because it has to be involved. The company has failed to offer best salaries to its employees resulting to strikes which affect normal operation. Economically, the company has failed to work towards new ventures likely to increase profits. Socially, the company has failed to cater for the growing demand. Technologically the company has not invested enough in technology which serves to ensure efficient service delivery (Kotler, 2008). Conclusion In conclusion, organizational structure of a company is a key to its success. British Airways’ organizational structure has helped the company achieve a lot. However, the failures identified should be eliminated to increase the efficiency of the company. The company should work towards increasing investment in technology since it will help in improved service delivery. The pest analysis explains what should be done to achieve the desired status. References Blau, M. and Scheonherr, A., 1971. Structure of organization. New York: Basic books. Bohte, J. and Meier K.., 2001.Structure and performance of public organizations: Task difficulty and span control. Rochester: Oakland university press Brassington F. Pettitt, S., 2007. Principles of marketing. London: Oxfor d university press. British Airways, (2010). 2009Annual reports. Available at www.britishairways.com/cms/global/microsites/ba_reports0809/our_business/w orkplace.html Golembiewski, T,. 1962.Behaviour and organization. Chicago: Rand-McNally. Goodsell, C., 1994. The case of bureaucracy. New Jersey: Chatham House Publishers. Henry, A., 2008. Understanding Strategic management. London: Oxford university press. Kotler, P., 2008. Principles of marketing. New York: Nuvision. Rainey, G., 1997. Understanding and managing public organization.San Francisco: Josey- Bass Publishers. Wilson, Q., 1989. Bureaucracy. New York: Basic books. This report on British Airways Management Environment was written and submitted by user Caitlyn Q. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

261 Langston Hughes Poems Professor Ramos Blog

261 Langston Hughes Poems Langston Hughes (1902 1967) Langston Hughes (1902 1967) Poems â€Å"Mother to Son† (1037) â€Å"I, to† (1038) â€Å"Theme for English B† (1043) American Identity Essay Rough Draft due Monday American Identity Essay

HRM Essay Example | Topics and Well Written Essays - 1250 words

HRM - Essay Example Only a manger with outstanding skill can identify the required changes right way. If a company fails to understand the required changes, it would confront with crises as it misunderstands the symptoms as real issues to be addressed. The following part of the paper will discuss how a company can identify the need for change from its internal and external environments. 1. Unusual decline in turnover: this is the basic sign that would prompt every firm to identify the range of business profitability. Organizations usually review previous years’ audited balance sheet with intent to investigate the prevailing business trend as well as the organizational sustainability. In the same way if the operational cost is found exceeding the profit derived from the business, it indicates the need for some strategic changes in the business operation. However, the specific area of change can be identified only through further scrutiny. Presumably, most of the problems, no matter associated with fiscal aspects or market backlashes, are attributed to HR failure. 2. Strategic failures: If some of the recently implemented marketing strategies are not well responded, the company should review them to identify the causes of failure. Failure may not be necessarily due to their inaptness but can happen because of numerous direct or indirect factors related to business. As far as the internal environment is concerned, a well designed strategy can be defeated just by the mibehaviour of one or more individuals. In other words, how well a strategy is implemented is more important than the quality of its design. 3. Unethical practices: Organizational misconduct is an important symptom that indicates the inevitability of change, perhaps specifically in the area of HRM and organizational structure. Most of the fraudulent activities occur due to the inefficient internal communication and auditing. Modern organizations heed genuine concern to enhance internal communication by integrating various departments with the help of web-based technologies. By doing so they can easily manage the problems associated with information sharing and problem solving. Diagnosing the cause is not the end but the initial step of any treatment process. Once the need for change is identified a firm has to proceed with designing and implementing relevant changes that would enhance the overall cohesion of the organisation. There are numerous issues an organisation has to take into consideration while initiating changes. As Dunphy (249) warns, most important one among them is to address employees’ resistance to change which would raise several ethical concerns. An organisational culture that was formed over years cannot be altered overnight. A change can take place successfully only if people in an organisation realise that the organisation must change its current culture and practices in order to ensure the firm’s sustainability and progress. However, the process requires mem bers’ deep understanding of the need for change, their commitment to accomplish it, and the effective way of deploying it. The understanding refers to the knowledge about the current culture and its impacts on the firm, the anticipated benefit of the new system, and the real goal it would achieve. This knowledge can be acquired by reviewing the extent to which the current culture has helped the firm to meet its mission, vision, and values with regard to business aims and social concerns. 2 Organisations

Financial Analysis of Netflix Essay Example | Topics and Well Written Essays - 1250 words

Financial Analysis of Netflix - Essay Example In 1999, monthly subscriptions model was introduced and the reputation of the firm grew as a flat- fee rental with no due dates and late fee. Netflix has to its credit the personalized movie recommendation system which suggests choices to users based on their previous purchases. Also mentionable is the fact that Netflix user base has increased every year from the date its conception by over 50% from past years till 2005. After 2005, the number of subscribers continued to increase but at lower rates. (Netflix, 2012) Netflix also partnered with certain electronics companies to make streaming possible on the PS3, TVs with internet connections, Xbox 360, Apple iPhones, iPads, iPods and other internet connected devices. (Netflix, 2012) Researches showed that in 2011, 61% of the digital video market clintele belongs to Netflix. (Stambar, 2011) in 2011, Netflix is the highest revenue earner in the United States. (Frankel, 2012) This data clearly shows that as of right now, Netflix is a mark et leader. INCOME STATEMENT (Business Week, 2012)    31-Dec-08 31-Dec-09 31-Dec-10 31-Dec-11 Revenues 1,364.70 1,670.30 2,162.60 3,204.60 TOTAL REVENUES 1,364.70 1,670.30 2,162.60 3,204.60 Cost of Goods Sold 910.2 1,079.30 1,357.40 2,039.90 GROSS PROFIT 454.4 591 805.3 1,164.70 Selling General & Admin Expenses 249.4 286.6 358.3 520.6 R&D Expenses 89.9 114.5 163.3 259 Other Operating Expenses -6.3 -- -- -- OTHER OPERATING EXPENSES 332.9 401.2 521.6 779.6 OPERATING INCOME 121.5 189.8 283.6 385.1 Interest Expense -2.5 -6.5 -19.6 -20 Interest and Investment Income 9.2 4.8 2.7 2.8 NET INTEREST EXPENSE 6.7 -1.6 -16.9 -17.2 Other Non-Operating Income 0.1 -- -- -- EBT, EXCLUDING UNUSUAL ITEMS 128.4 188.2 266.7 367.8 Gain (Loss) on Sale of Investments 3.1 1.9 1 0.7 Other Unusual Items, Total -- 2.1 -- -9 Legal Settlements -- 2.1 -- -9 EBT, INCLUDING UNUSUAL ITEMS 131.5 192.2 267.7 359.5 Income Tax Expense 48.5 76.3 106.8 133.4 Earnings from Continuing Operations 83 115.9 160.9 226.1 NET IN COME 83 115.9 160.9 226.1 Talking about the income statement of Netflix, the trend of revenues has certainly taken a great boost since 2006 from 1365 million dollars to 3205 million dollars in 2011. Growth in revenue certainly is a positive sign for any company. Netflix has achieved huge numbers during the four years. The cost of sales has also risen but looking at the overall gross profit margin, we see a rising trend. Expanses look pretty much under control and would not had been a point of concern for Netflix. The change in the income statement which was very obvious was the interest charges which rose by big number from (1.6) in the year 2008 to (16.9) in 2010 and (20) in 2011. This means that Netflix has taken huge amount of loans in 2010 and have retained them in 2011 as well. In the income statement, we can also see that the investment’s income earned has also decreased since 2006. This means that Netflix have taken out all the investments it had made outside its compa ny. Net income also shows a positive growing trend. From the income statement, we can say that Netflix is growing and has profitable numbers. BALANCE SHEET (Business Week, 2012)    31-Dec 31-Dec 31-Dec 31-Dec Currency in Millions of US$ 2008 2009 2010 2011 Assets             Cash and Equivalents 139.9 134.2 194.5 508.1 Short-Term Investments 157.4 186 155.9 289.8 TOTAL CASH AND SHORT TERM INVESTMENTS 297.3 320.2 350.4 797.8 Prepaid Expenses 26.5 26.7 62.2 56 Deferred Tax Assets, Current -- -- 2.2 10 Restricted