Factors Causing High Employee Turnover Rates

Factors Causing High Employee Turnover Rates Staff Retention Human Resources Management Chapter 1 Introduction Employee turnover in the industry has become the custom today in the manufacturing, service and merchandising industry. Employees are moving from one form of employment to another because of several factors that the employers have not yet grasped. In this regard many industry players are busy defining ways to protect turnover of its employees. The most affected part of this is the merchandising industry. In the bid to prove influence in the fastest upcoming sector executives in the merchandising industry are fighting hard the high trend of their staff consistently changing jobs (Rueben 22). Today generating an atmosphere favorable and valued by all employees in the ever changing employee market may not be as pain-streaking as it may appear to the larger population. It engages a number of issues may make the brilliant minds that make up your staffs want to stay in the organization. A combination of this contribution may eventually lead to higher number of employees and thus reduce tur nover. The contributions made above require that they be performed in tandem for observable achievement to be achieved. Grasping the skill of staff retention requires that management delve deeply into what causes turnover of staff in institutions. Many questions should be put on the table in order to ascertain reasons why one would want to work in one organization and not prefer to work in another organization. The managements should not rest at that but proceed to look into the subsequent period that the employee has been absorbed into an organization. By asking these questions it is easy to discern that there are a lot of issues that have been left wanting for a long time. I find it easy to look at these issues by sympathizing with the employee and trying to assume his shoes at the company. This in real meaning requires doing proper research on standard ethical models that might be brought on board to encourage retention of employees. In the recent past the employers used to retai n employees. The confidence thus gained goes down well with those in the precincts of work thus offering them purpose and presence. Boosting the moral of workers is one way of improving confidence of staff. In this regard even the general productivity of the company of the company can be noticed. Working closely and collectively in addition grants the staff presence. Al in all its just a matter of saying thank you as morality demands. There are different styles of leadership in institutions that influence how relationships in the work place take place. People in leadership roles should be in the fore front in show wing proper codes of conduct to their employees, as opposed to taking the hind seat. In turn the employees may feel very motivated within the working environments that they are working. This enabling environment will thus lead to a sense of belonging by the individuals and cohesiveness thus leading to teamwork translating into a proud team. For one to retain staff he or she has to consider several important issues of the work place. Background Draper Co. Ltd. Found in 1987 is a sweater manufacturer that employs more than 100 people in Hong Kong. Since garment companies had bloomed in recent years. The role for merchandising people become more difficult and the manpower is short in the labor market. Draper is facing the problem of high staff turnover rate. In addition, with opening of the mainland market, many foreign enterprises had set up their merchandising sections in Hong Kong and some enterprises also invite Hong Kong garment companies to cope with their expanding business. As a result, the job vacancies of staff increased tremendously. Among the merchandising industry, garment sections are highest in demand for staff. This is due to the fast growing of the sectors as well as the high employee turnover rate and the lack of talent in the labor market. With the goal of identifying predictors of turnover, factors and employees intention to leave or stay with the company will be the major issue of Draper Co. Ltd. Research Problems Initially, the establishment of the project required the involvement of different parties who would provide data and statistical analysis. The study required involvement of external organizations which would require them to allow access their staff to cooperate during the course of the research. Unfortunately some of these merchants turned down request to take part a little after the project was already initialized, it was quite unfortunate. The team of researchers contacted several nationwide merchandise groups to request them to take part in the research as a subsequent measure. Within a short period of time, two particular staff articulated formal concern and primarily arranged to play a part in the project but with the approval of the Board of Governors of their respectful organizations. The team of researchers used up considerable hours meeting with a variety of the team of people representing the staff and giving important information related to the research and showing present ations that highlight the scope of the study. An agreement was made with these staff that the research panel would conduct industry job and staff retention survey within the merchandise organization, rather than concentrating on organizational loop holes as it would imply that there are indeed loop holes, in their respective organizations which might not be the truly case. However because of various unpredicted situations including the falling ill of one of the team members who acted as coordinator of the research team and these respectful staff, the staff in the end made the decision to withdraw its cooperation, leaving operation of the research between a rock a rock and a hard place. The research team then informed the Draper Co. Ltd of the current problems and suggesting a different research method design that would still be in line aims of the project and the objectives outlined before the research was initially flagged off. In this respect, a decision was made to advertise acro ss various merchandise outlets to secure individual people working as staff to act as respondents from different retail outlets, thus eliminating the process of approaching company heads or Board of Governors for endorsement to guarantee a speedy and effortless contact with respondents. The Draper Co. Ltd was highly involved in endorsing the submission for change in the approach for the research. The research carried out by the team concerned conducting 100 partially controlled telephone interviews with staff from different merchandising firms including own staff at Draper Co. Ltd . The research method design of the survey was cautiously designed and conversant with preceding works that dwelled on employee equality and diversity concerns all over the work environment (e.g. Sutherland and Davidson, 1997). The design of the interviews was such that it could be in accordance with the aims and corresponding objectives of the Draper Co. Ltd and eventually deal with a array of concerns as well as the recognition of possible occupational improvement barriers and the recognition of approaches for conquering these limitations, chances for education and training, job promotions and provision for leadership. The partially controlled interview timetable was then stored in secure modules and safe websites secured with passwords, which eventually made it easy for members of the research panel to enter information directly into the research database and online pages, and at the same time carrying out interviews with respondents all over the merchandising industry. The details of the research methodology and what will be contained in the schedule for the research is described in the subsequent sections. Research Objective This study was led by a research team commissioned by the Draper Co. Ltd. The research team was selected by the management of the company with advice by the legal advice wing experts. It was agreed that 16 members be brought aboard the team of researchers. The main goal of identifying predictors of turnover, factors and employees intention to leave or stay with the company will be the major issue of Draper Co. Ltd. The aims of the project were as follows: To examine two sets of potential causes of job turnovers and eventual staff retention mechanisms: firstly, those that impede the retention of workers in the organization and secondly, those that speeds the exit of the players from the organizations. Identify strategies for overcoming these barriers. Investigate the feasibility of constructing a national database, documenting the career paths of women in the merchandise industry. Develop, publish and disseminate good practice guidelines and recommendations using reports, conference presentations, feedback seminars, academic journals and merchandise specialist and national press. The objectives of the project were to: Investigate two sets of potential reasons for staff leaving the company: firstly, those that accelerate the exit of workers and staff and secondly, those that impede the efforts of retaining staff in the organization. Identify strategies for overcoming these reasons. Investigate the feasibility of constructing a company database, documenting the career paths of workers in the merchandise industry. Develop a promotion system, which is more sensitive to the needs of employees Develop an image of the company, which is based entirely upon team cohesion. Provide a concept of role models, which can be utilized by young employees to resolve possible work life balance conflicts. Produce a set of solutions, which can be applied to other retail settings. Develop, publish and disseminate good practice guidelines and recommendations using reports, conference presentations, feedback seminars, academic journals and merchandise specialist and national press. Research Questions: Why this company has high staff turnover rate Why staff relationship will make new comer difficult to fit in team work What relationship caused high staff turnover rate How to retain staff in this company Does the management policy affect staff retention? Does the company is responsive to employees needs and wants Does companys reputation retain staff? Terminologies Merchandising Retention Welfare Turnover Respondent Outsourcing Glass ceiling Dissertation Outlines Chapter 2 Literature Review 2.1 Introduction This Section looks at the main literature in this area. The first sections focus on the structure of merchandising and the broader profile of the sector. The section then moves on to its main concern which is the job retention of staff at junior and senior levels in merchandising. Merchandising is an economic sector, which has traditionally been associated with the employment of staff. Overall, 60% of staff are low skilled employees and 40% are highly skilled in terms of there educational background. Even as these figures show that the merchandising sector clearly employs a larger number of low skilled than the skilled, it is not a ‘balanced industry (Stillsmart, 2004). The representation of low skill workers in the merchandising sector however, follows a number of important patterns. Official statistics are used to highlight the predominance of staff in part time work in the merchandising sector and the under representation of a section staff at senior levels. According to Sti llsmart, (2004), official figures are general and are unlikely to provide a clear understanding of the dynamics relating to the position in which staff is employed in merchandising sector. The following sections therefore outline theories that have been offered to account for these disparities, particularly in relation to barriers for staff attempting to progress into senior management positions. An examination of managing diversity is then offered and potential mechanisms for ensuring merchandising organizations fully utilize the talents of all employees to maximize productivity is discussed. 2.2 The structure of the merchandising sector The merchandising sector is the largest private sector employer in the Hong Kong yet it is rarely recognized as such. Stillsmart (a not for profit organization, set up and part funded by Government to identify and address the skills needs of the Hong Kong merchandising sector), suggest that this is, possibly because its workforce is not concentrated in any particular region or locality. In fact, the merchandising sector is the largest public sector employer in the Hong Kong. Furthermore, Wang XI Inc is the Hong Kongs second largest employer after the Jubilee (Stillsmart, 2004). Overall, the merchandising sector employs three million people throughout the Hong Kong, which accounts for approximately ten per cent of employment throughout the Hong Kong. However, the structure of the industry is unusual, and is described by Stillsmart, as ‘hourglass shaped. The vast majority (95%) work in firms with less than ten employees. Consequently, there is significantly less (just over two th ousand) merchandising employers with more than fifty staff, reflecting the â€Å"hourglass shape† of the industry profile. 2.3 Job Retention and improvement Strategies The welfare reform programs of the 1990s moved many families from cash assistance into the work force. The strong economy provided an abundance of entry-level, low-skill job opportunities to support this transition. For most of these families, however, finding a job is only the first step in the difficult path toward self-sufficiency. Like other working parents, adults who leave welfare (â€Å"leavers†) often encounter barriers to job retention and advancement. Between 1994 and 2002, the welfare caseload declined drastically, by more than 2.5 million cases (or 50 percent). Simultaneously, the number of single mothers either divorced or never married— in the work force increased by more than 1.2 million (or 22 percent). Government welfare programs have been instituted to help keep women employed and off welfare. Job retention and improvement strategies are becoming increasingly important to state policymakers as unemployment rates rise and slowed economic growth, corpora te lay-offs, and hiring freezes limit job opportunities for parents who are moving into the work force. Current and former welfare recipients and those who dont have a strong attachment to the work force may find it more difficult to gain employment in hard economic times, thus increasing the demand for job retention and improvement services for those who currently are employed. 2.4 Present profile of turnover of employees Employment expectations have risen slightly in (Q1) from an already high level in Q4. Of the 514 sales executives surveyed, 54% expect to increase their hiring which is slightly up from 53% the previous. As the years go by, expectations have remained solid. The 54% planning to grow headcount this year is at the same level as Q1 2004, though there are some variations between the sectors surveyed. Companies are extremely confident about how they will perform in the next six months with 95% of respondents forecasting their companys performance to be excellent or good in the first half of 2007. Respondents in Hong Kong report higher levels of staff turnover than in any other market surveyed in Asia with 37% stating that turnover in the last twelve months has exceeded 10% (Hudson, 2007). Hudson, one of the worlds leading professional recruitment, outsourcing and capacity management solution providers, today released findings of its broad quarterly Hudson Report for Asia. With a status as a key socio-economic indicator in the present market since its Asia launch in September 2000, the survey has been built on the premise that employers expectations of an increase or decrease in staffing levels represent a significant indication of their optimism in the growth of their organization and their industry as a whole. The Hudson Report represents the expectations of over 1450 key employment decision makers from multinational organizations of all sizes in all major industry sectors, with 400 of these executives based in Hong Kong. 2.4 The general profile of employees in the merchandising sector Traditionally the merchandising sector is associated with the employment of low level and unskilled workers, the vast majority of whom work in the lower ranks of the organizational hierarchy. The profile of employees in merchandising also follows a number of other patterns. The merchandising sector for example employs a large proportion of young people. According to recent estimates 29% of those employed in the sector are between the ages of 16 to 24. This is compared to the overall economy figure of 14%. It has been suggested that this figure may be due to the popularity of merchandising as a part-time occupation for young people and students (Stillsmart, 2004). Merchandising is also a popular choice for older workers (persons over 55). In terms of ethnic minority employment, the merchandising sector employs a similar fraction to those figures available nationally (Stillsmart, 2004). Recent research has shown however, that certain recruitment practices may prevent ethnic minorities from gaining employment in merchandising organizations. For example a study for Birmingham and Manchester cities in Britain for example, found that employers might specify jobs as a matter of course that require the staff to work on Saturdays without realizing that a large pool of potential workers would be unable to work on this day as it is their Sabbath (Vector research, 2003). 2.4 The trends common in the merchandising sector Merchandising is an economic sector, which has customarily been associated with the employment of diverse people of different background. Overall, 55% of merchandising employees are women and 45% are men (Stillsmart, 2004). This gender factor in the merchandising sector remains fairly consistent throughout other nations and regions of the Hong Kong and this profile has been fairly consistent over the last 10 years. Skill level has also played a bigger part in influencing how long an employee is wiling to stay in a given organization. Better salaries in other organizations may lead to employees moving from their respective place of work in pursuit for better opportunities (Hudson, 2004). Level of qualification gives workers a broader scale of work opportunities that they willingly take into considerations. Stillsmart (2004) suggest that Hong Kongs larger ethnic population is likely to be the source of this greater proportion of the workers in the capital run by ethnic minorities may p roprietorship driven by highly skilled male people. It is important to note however, that the representation of retention in the merchandising sector follows a number of important patterns discussed in the subsequent sections. Firstly the prevalence of staff turnover in the merchandising sector will be discussed. Secondly, evidence will be presented to show the under representation of employee needs at senior levels within the merchandising sector. 2.4.1 The prevalence of staff turnover in the merchandising sector Statistics from Stillsmart (2004) indicate that merchandising sector employment occupy three quarters of all employment in the Hong Kong economic sector, which accounts for 40% of all employment. This is a significant figure when, compared to the economy overall, where only 25% of people are employed permanently. The other majority of those working are part time workers employed in sales and customer service occupations. Figure 2.1 outlines the proportion of full and part time employment in the merchandising sector by gender. Source: Survey by National Employment Institute 2.4.1.1 Job retention in the labor force as a whole The prevalence of staff turnover when compared with other sectors of the economy is particularly evident in the merchandising sector. This trend is also reflected in employment across the Hong Kong, particularly in the service industries. The numbers of staff entering the labor market has dramatically increased over the past thirty years and this rise in numbers has mainly been in by young people with low skill (Burke and Nelson 2002; Davidson and Burke, 2002). Because of this influx of young energetic minds quickly induces training for the staff. After gaining much needed experience then leave the industry for more lucrative jobs in other sectors. Youthful persons in the Hong Kong are far more likely than middle and old aged persons to work as part-timers (EAC, 2004). According to the National Office of Statistics, in 2005, 42% of young employees in the Hong Kong worked in the sector compared to just 9% of old people. Interestingly, the number keeps on increasing in the industry whe reas companies are reporting a high staff turnover hence posing a big threat to company survival in the highly competitive industry (EAC, 2004). Source: Survey by National Employment Institute 2.4.3 Explanations for the prevalence of staff turnover among staff in the merchandising sector Traditionally, the predominance of staff turnover is largely attributed to the level of education and other academic qualifications (e.g. those with degrees go for more lucrative jobs in other lucrative industries vacating there positions) traditionally occupied by them which limits the productivity of the company (Thompson, 2004; Stillsmart, 2004). When addressing the merchandising sector specifically, Lynch (2003) comments that it is the very nature of the merchandising industry that contributes to the high proportion of turnovers. In the merchandising industry, recruitment is largely secured from the local labor market, staff requirements vary due to seasonal demands and employees are often required to work unfriendly hours as outlets open longer. These are all factors that lead to the reduction of morale and interest in the jobs within any organizational sector, and specifically the merchandising sector. In addition, Lynch (2003) further suggests that due to these delimiting fact ors in the industry and the continuous fluctuation of workforce in particular, potential merchandising companies are provided with an available pool of labor that accepts inferior terms and conditions of employment, as staff attempt to resolve their need to educate and retain their staff. 2.4.3.1 The under representation of staff interests in the merchandising sector by executives and senior officials Official statistics show that there is a higher proportion of college educated in managerial and senior occupations in the merchandising sector than in comparison to the economy a whole. It is important to note, however, that if the representation of staff; male and female, skilled and unskilled were equal throughout the sector. Furthermore, low skilled staff tends to predominate in certain types of management positions including personnel, which are roles traditionally associated with low skilled. 2.5 Recruitment and Retention of Paid Staff It can be surely asserted that, paid staff is a vital part of the retail and merchandising sector. Lynch (2003) further suggests that almost half (40%) of Canadas estimated 161,000 nonprofit and voluntary organizations has least one paid staff member. The sector as a whole employs just over 25% of the total economy. Twenty percent of paid staff in merchandising organizations is in permanent positions and 56% work full-time. The survey asked all organizations involved about the challenges they face recruiting the type of paid staff they need. Twenty-eight percent of organizations said that this is a problem for them; 8% said that the problem is serious. Organizations with paid staff were also asked if they have problems retaining staff. Nineteen percent said that they do, with 8% saying that the problem is serious. As a group, problems relating to paid staff were reported less frequently than other types of capacity challenges. Nevertheless, challenges relating to paid staff are signi ficant for some organizations. 2.5.1 Size of Paid Staff Complement In general, the more paid staff an organization has, the more likely it is to report problems with staff recruitment and retention. Forty-one percent of organizations with 13% of paid staff members reported problems recruiting paid staff. This rises to 30% among organizations with 20 to 50 staff members, 63% among those with 100 to 500 staff members, and 73% among those with 1000 or more staff members. The relationship between the number of staff an organization has and staff retention problems is less pronounced. Seventeen percent of organizations with one to four staff members said this is a problem for them. This increases to 26% among organizations with 100 or more staff members (Stillsmart, 2004). Source: Survey by National Employment Institute 2.5.2 Reliance on Paid Staff Lynch (2003) suggests the greater the percentage of an organizations workforce that is comprised of paid staff (As opposed to volunteers), the more dependent on paid staff the organization can be said to be. The more reliant an organization is on paid staff, the more likely it is to report difficulties employing and retaining staff. Lynch (2003) further suggests that this relationship is particularly strong for staff recruitment. For example, among organizations in which staff makes up one-third or less of the workforce, 15% said that staff recruitment is a problem for them and 19% said that staff retention is a problem. Nevertheless, among organizations in which staff comprises two thirds or more of the workforce, 54% said that staff recruitment is a problem and 20% said that staff retention is a problem (Stillsmart, 2004).. Source: Survey by National Employment Institute 2.6 The Glass ceiling theory The under representation of minority group in management positions in the merchandising and other occupational sectors has led theorists to assert that a ‘glass ceiling exists. The minority in this case includes: physically handicapped, less educated and women. The term ‘glass ceiling is used to reflect the ability of and minorities to view the world above them but the metaphorical ceiling prevents the minorities from accessing the better opportunities they can view. This glass ceiling effect occurs when minorities with equivalent credentials as the other employees, i.e. those who traditionally occupy positions of power within organizations, are prevented from accessing top jobs simply because they have particularly weaknesses (Davidson, 1997; Powell, 1999; Konrad, Prasad and Pringle, 2004). Nevertheless, the proportion of minorities in management has increased over the past three decades in almost all countries and legislation in some countries (e.g. Affirmative Action L egislation in the U.S. and Canada) has contributed to this trend (Powell and Graves, 2003). Despite this encouraging increase, recent research by Catalyst (2005) has shown that the glass ceiling is firmly in place. In the U.K., seventy-eight Financial Times Share Index (FTSE 100) companies in 2004 had physically challenged directors, up 13% from the previous year. However, only eleven FTSE 100 companies had female executive directors, which was below the 2002 figure and twenty-two of the FTSE 100 boards in 2005 were all-male (Singh and Vinicrombe, 2005). These statistics largely reflect the experiences of white staff. It is important to highlight that black and ethnic minority staffs across the globe often face significant hurdles. Although there is a general lack of data on ethnicity and employment or physical handicap and employment, ethnic minority employees are under- represented at senior and professional levels in the labor market (Commission for Racial Equality, 2004). In Hon g Kong in 2004 for example, 17% of ethnic minority men were managers or senior officials compared to 10% of ethnic minority staff. The highest percentages of staff and men in these positions were Indian and Chinese (Commission for Racial Equality, 2004). Research has highlighted that a glass ceiling exists even in occupations where staff predominate. Approximately 90% of nurses, for example, are female but male nurses often experience greater career success than female nurses (Nursing and Midwifery Council, 2005). The number of women studying merchandise in England now outnumbers men (Davidson and Burke, 2004) but partners of top merchandise firms continue to be predominantly men. An examination of data from the top 10 ten merchandise firms in the Hong Kong in 2005 revealed that on average, 15% of female partners in the top 10 merchandise firms are women (The Merchandise Society, 2005). Recent research has highlighted that whilst women and physically challenged are now achieving mor e senior roles, they are more likely than men to find themselves on a ‘glass cliff (Haslam, 2005). According to Haslam (2005), this is because staff are more likely to secure positions of leadership when organizations are not performing at their optimum level. This means that their appointments are made under more risky circumstances which make them more uncertain. This suggests that not only do staff experience hurdles to achieving senior roles; they are placed under greater scrutiny and face increased pressures when they do reach leadership positions. The disadvantaged experience of the glass ceiling is an important area of study and has implications for the future development of talent in organizations of all sectors including merchandising. Research has shown for example that frustrated by the glass ceiling, many workers quit and start their own businesses (Powell, 1999; Davidson and Fielden, 2003). This can have a detrimental affect within organizations as competent and e xperienced staffs remove themselves from the selection pool. 2.5.1 Pay Differences However, research shows that staff leaders and staff at all levels of the workforce are generally paid less than men with equivalent skills, training and experience, for performing the same roles. In 2005, the percentage difference between the average hourly earnings of staff working full-time in Great Britain for example was 17.1 % (Equal Opportunities Commission, 2004). In the US, staffs earn approximately 77 cents for every dollar earned by men (Retailers Bureau data, 2000, in Nelson and Michie, 2004). The Equal Opportunities Commission in the U.K. (2005) highlights three main reasons for this pay difference. Firstly, there is discrimination in pay systems. Staff are paid less than men for performing the same roles. Secondly, ‘occupational segregation exists. Many employees is concentrated in low paid jobs. Thirdly, staffs assume caring responsibilities for children and other relatives/dependents, which affects their progression at work due to the lack of flexible working. 2.6 Perspectives on barriers to staff in management Authors have identified an array of complex factors that contribute to the existence and pervasive nature of the ‘glass ceiling. Three main perspectives have been offered to explain the adversity facing staff aspiring to senior levels within organizations. These are commonly referred to as the ‘person centered or ‘gender-centered approach (Powell, 1999), the organizational structure perspective (Fagenson, 1993; Kanter, 1977) and the social systems perspective. It is widely acknowledged that the glass ceiling is a result of a culmination of these three main perspectives (Omar and Da Factors Causing High Employee Turnover Rates Factors Causing High Employee Turnover Rates Staff Retention Human Resources Management Chapter 1 Introduction Employee turnover in the industry has become the custom today in the manufacturing, service and merchandising industry. Employees are moving from one form of employment to another because of several factors that the employers have not yet grasped. In this regard many industry players are busy defining ways to protect turnover of its employees. The most affected part of this is the merchandising industry. In the bid to prove influence in the fastest upcoming sector executives in the merchandising industry are fighting hard the high trend of their staff consistently changing jobs (Rueben 22). Today generating an atmosphere favorable and valued by all employees in the ever changing employee market may not be as pain-streaking as it may appear to the larger population. It engages a number of issues may make the brilliant minds that make up your staffs want to stay in the organization. A combination of this contribution may eventually lead to higher number of employees and thus reduce tur nover. The contributions made above require that they be performed in tandem for observable achievement to be achieved. Grasping the skill of staff retention requires that management delve deeply into what causes turnover of staff in institutions. Many questions should be put on the table in order to ascertain reasons why one would want to work in one organization and not prefer to work in another organization. The managements should not rest at that but proceed to look into the subsequent period that the employee has been absorbed into an organization. By asking these questions it is easy to discern that there are a lot of issues that have been left wanting for a long time. I find it easy to look at these issues by sympathizing with the employee and trying to assume his shoes at the company. This in real meaning requires doing proper research on standard ethical models that might be brought on board to encourage retention of employees. In the recent past the employers used to retai n employees. The confidence thus gained goes down well with those in the precincts of work thus offering them purpose and presence. Boosting the moral of workers is one way of improving confidence of staff. In this regard even the general productivity of the company of the company can be noticed. Working closely and collectively in addition grants the staff presence. Al in all its just a matter of saying thank you as morality demands. There are different styles of leadership in institutions that influence how relationships in the work place take place. People in leadership roles should be in the fore front in show wing proper codes of conduct to their employees, as opposed to taking the hind seat. In turn the employees may feel very motivated within the working environments that they are working. This enabling environment will thus lead to a sense of belonging by the individuals and cohesiveness thus leading to teamwork translating into a proud team. For one to retain staff he or she has to consider several important issues of the work place. Background Draper Co. Ltd. Found in 1987 is a sweater manufacturer that employs more than 100 people in Hong Kong. Since garment companies had bloomed in recent years. The role for merchandising people become more difficult and the manpower is short in the labor market. Draper is facing the problem of high staff turnover rate. In addition, with opening of the mainland market, many foreign enterprises had set up their merchandising sections in Hong Kong and some enterprises also invite Hong Kong garment companies to cope with their expanding business. As a result, the job vacancies of staff increased tremendously. Among the merchandising industry, garment sections are highest in demand for staff. This is due to the fast growing of the sectors as well as the high employee turnover rate and the lack of talent in the labor market. With the goal of identifying predictors of turnover, factors and employees intention to leave or stay with the company will be the major issue of Draper Co. Ltd. Research Problems Initially, the establishment of the project required the involvement of different parties who would provide data and statistical analysis. The study required involvement of external organizations which would require them to allow access their staff to cooperate during the course of the research. Unfortunately some of these merchants turned down request to take part a little after the project was already initialized, it was quite unfortunate. The team of researchers contacted several nationwide merchandise groups to request them to take part in the research as a subsequent measure. Within a short period of time, two particular staff articulated formal concern and primarily arranged to play a part in the project but with the approval of the Board of Governors of their respectful organizations. The team of researchers used up considerable hours meeting with a variety of the team of people representing the staff and giving important information related to the research and showing present ations that highlight the scope of the study. An agreement was made with these staff that the research panel would conduct industry job and staff retention survey within the merchandise organization, rather than concentrating on organizational loop holes as it would imply that there are indeed loop holes, in their respective organizations which might not be the truly case. However because of various unpredicted situations including the falling ill of one of the team members who acted as coordinator of the research team and these respectful staff, the staff in the end made the decision to withdraw its cooperation, leaving operation of the research between a rock a rock and a hard place. The research team then informed the Draper Co. Ltd of the current problems and suggesting a different research method design that would still be in line aims of the project and the objectives outlined before the research was initially flagged off. In this respect, a decision was made to advertise acro ss various merchandise outlets to secure individual people working as staff to act as respondents from different retail outlets, thus eliminating the process of approaching company heads or Board of Governors for endorsement to guarantee a speedy and effortless contact with respondents. The Draper Co. Ltd was highly involved in endorsing the submission for change in the approach for the research. The research carried out by the team concerned conducting 100 partially controlled telephone interviews with staff from different merchandising firms including own staff at Draper Co. Ltd . The research method design of the survey was cautiously designed and conversant with preceding works that dwelled on employee equality and diversity concerns all over the work environment (e.g. Sutherland and Davidson, 1997). The design of the interviews was such that it could be in accordance with the aims and corresponding objectives of the Draper Co. Ltd and eventually deal with a array of concerns as well as the recognition of possible occupational improvement barriers and the recognition of approaches for conquering these limitations, chances for education and training, job promotions and provision for leadership. The partially controlled interview timetable was then stored in secure modules and safe websites secured with passwords, which eventually made it easy for members of the research panel to enter information directly into the research database and online pages, and at the same time carrying out interviews with respondents all over the merchandising industry. The details of the research methodology and what will be contained in the schedule for the research is described in the subsequent sections. Research Objective This study was led by a research team commissioned by the Draper Co. Ltd. The research team was selected by the management of the company with advice by the legal advice wing experts. It was agreed that 16 members be brought aboard the team of researchers. The main goal of identifying predictors of turnover, factors and employees intention to leave or stay with the company will be the major issue of Draper Co. Ltd. The aims of the project were as follows: To examine two sets of potential causes of job turnovers and eventual staff retention mechanisms: firstly, those that impede the retention of workers in the organization and secondly, those that speeds the exit of the players from the organizations. Identify strategies for overcoming these barriers. Investigate the feasibility of constructing a national database, documenting the career paths of women in the merchandise industry. Develop, publish and disseminate good practice guidelines and recommendations using reports, conference presentations, feedback seminars, academic journals and merchandise specialist and national press. The objectives of the project were to: Investigate two sets of potential reasons for staff leaving the company: firstly, those that accelerate the exit of workers and staff and secondly, those that impede the efforts of retaining staff in the organization. Identify strategies for overcoming these reasons. Investigate the feasibility of constructing a company database, documenting the career paths of workers in the merchandise industry. Develop a promotion system, which is more sensitive to the needs of employees Develop an image of the company, which is based entirely upon team cohesion. Provide a concept of role models, which can be utilized by young employees to resolve possible work life balance conflicts. Produce a set of solutions, which can be applied to other retail settings. Develop, publish and disseminate good practice guidelines and recommendations using reports, conference presentations, feedback seminars, academic journals and merchandise specialist and national press. Research Questions: Why this company has high staff turnover rate Why staff relationship will make new comer difficult to fit in team work What relationship caused high staff turnover rate How to retain staff in this company Does the management policy affect staff retention? Does the company is responsive to employees needs and wants Does companys reputation retain staff? Terminologies Merchandising Retention Welfare Turnover Respondent Outsourcing Glass ceiling Dissertation Outlines Chapter 2 Literature Review 2.1 Introduction This Section looks at the main literature in this area. The first sections focus on the structure of merchandising and the broader profile of the sector. The section then moves on to its main concern which is the job retention of staff at junior and senior levels in merchandising. Merchandising is an economic sector, which has traditionally been associated with the employment of staff. Overall, 60% of staff are low skilled employees and 40% are highly skilled in terms of there educational background. Even as these figures show that the merchandising sector clearly employs a larger number of low skilled than the skilled, it is not a ‘balanced industry (Stillsmart, 2004). The representation of low skill workers in the merchandising sector however, follows a number of important patterns. Official statistics are used to highlight the predominance of staff in part time work in the merchandising sector and the under representation of a section staff at senior levels. According to Sti llsmart, (2004), official figures are general and are unlikely to provide a clear understanding of the dynamics relating to the position in which staff is employed in merchandising sector. The following sections therefore outline theories that have been offered to account for these disparities, particularly in relation to barriers for staff attempting to progress into senior management positions. An examination of managing diversity is then offered and potential mechanisms for ensuring merchandising organizations fully utilize the talents of all employees to maximize productivity is discussed. 2.2 The structure of the merchandising sector The merchandising sector is the largest private sector employer in the Hong Kong yet it is rarely recognized as such. Stillsmart (a not for profit organization, set up and part funded by Government to identify and address the skills needs of the Hong Kong merchandising sector), suggest that this is, possibly because its workforce is not concentrated in any particular region or locality. In fact, the merchandising sector is the largest public sector employer in the Hong Kong. Furthermore, Wang XI Inc is the Hong Kongs second largest employer after the Jubilee (Stillsmart, 2004). Overall, the merchandising sector employs three million people throughout the Hong Kong, which accounts for approximately ten per cent of employment throughout the Hong Kong. However, the structure of the industry is unusual, and is described by Stillsmart, as ‘hourglass shaped. The vast majority (95%) work in firms with less than ten employees. Consequently, there is significantly less (just over two th ousand) merchandising employers with more than fifty staff, reflecting the â€Å"hourglass shape† of the industry profile. 2.3 Job Retention and improvement Strategies The welfare reform programs of the 1990s moved many families from cash assistance into the work force. The strong economy provided an abundance of entry-level, low-skill job opportunities to support this transition. For most of these families, however, finding a job is only the first step in the difficult path toward self-sufficiency. Like other working parents, adults who leave welfare (â€Å"leavers†) often encounter barriers to job retention and advancement. Between 1994 and 2002, the welfare caseload declined drastically, by more than 2.5 million cases (or 50 percent). Simultaneously, the number of single mothers either divorced or never married— in the work force increased by more than 1.2 million (or 22 percent). Government welfare programs have been instituted to help keep women employed and off welfare. Job retention and improvement strategies are becoming increasingly important to state policymakers as unemployment rates rise and slowed economic growth, corpora te lay-offs, and hiring freezes limit job opportunities for parents who are moving into the work force. Current and former welfare recipients and those who dont have a strong attachment to the work force may find it more difficult to gain employment in hard economic times, thus increasing the demand for job retention and improvement services for those who currently are employed. 2.4 Present profile of turnover of employees Employment expectations have risen slightly in (Q1) from an already high level in Q4. Of the 514 sales executives surveyed, 54% expect to increase their hiring which is slightly up from 53% the previous. As the years go by, expectations have remained solid. The 54% planning to grow headcount this year is at the same level as Q1 2004, though there are some variations between the sectors surveyed. Companies are extremely confident about how they will perform in the next six months with 95% of respondents forecasting their companys performance to be excellent or good in the first half of 2007. Respondents in Hong Kong report higher levels of staff turnover than in any other market surveyed in Asia with 37% stating that turnover in the last twelve months has exceeded 10% (Hudson, 2007). Hudson, one of the worlds leading professional recruitment, outsourcing and capacity management solution providers, today released findings of its broad quarterly Hudson Report for Asia. With a status as a key socio-economic indicator in the present market since its Asia launch in September 2000, the survey has been built on the premise that employers expectations of an increase or decrease in staffing levels represent a significant indication of their optimism in the growth of their organization and their industry as a whole. The Hudson Report represents the expectations of over 1450 key employment decision makers from multinational organizations of all sizes in all major industry sectors, with 400 of these executives based in Hong Kong. 2.4 The general profile of employees in the merchandising sector Traditionally the merchandising sector is associated with the employment of low level and unskilled workers, the vast majority of whom work in the lower ranks of the organizational hierarchy. The profile of employees in merchandising also follows a number of other patterns. The merchandising sector for example employs a large proportion of young people. According to recent estimates 29% of those employed in the sector are between the ages of 16 to 24. This is compared to the overall economy figure of 14%. It has been suggested that this figure may be due to the popularity of merchandising as a part-time occupation for young people and students (Stillsmart, 2004). Merchandising is also a popular choice for older workers (persons over 55). In terms of ethnic minority employment, the merchandising sector employs a similar fraction to those figures available nationally (Stillsmart, 2004). Recent research has shown however, that certain recruitment practices may prevent ethnic minorities from gaining employment in merchandising organizations. For example a study for Birmingham and Manchester cities in Britain for example, found that employers might specify jobs as a matter of course that require the staff to work on Saturdays without realizing that a large pool of potential workers would be unable to work on this day as it is their Sabbath (Vector research, 2003). 2.4 The trends common in the merchandising sector Merchandising is an economic sector, which has customarily been associated with the employment of diverse people of different background. Overall, 55% of merchandising employees are women and 45% are men (Stillsmart, 2004). This gender factor in the merchandising sector remains fairly consistent throughout other nations and regions of the Hong Kong and this profile has been fairly consistent over the last 10 years. Skill level has also played a bigger part in influencing how long an employee is wiling to stay in a given organization. Better salaries in other organizations may lead to employees moving from their respective place of work in pursuit for better opportunities (Hudson, 2004). Level of qualification gives workers a broader scale of work opportunities that they willingly take into considerations. Stillsmart (2004) suggest that Hong Kongs larger ethnic population is likely to be the source of this greater proportion of the workers in the capital run by ethnic minorities may p roprietorship driven by highly skilled male people. It is important to note however, that the representation of retention in the merchandising sector follows a number of important patterns discussed in the subsequent sections. Firstly the prevalence of staff turnover in the merchandising sector will be discussed. Secondly, evidence will be presented to show the under representation of employee needs at senior levels within the merchandising sector. 2.4.1 The prevalence of staff turnover in the merchandising sector Statistics from Stillsmart (2004) indicate that merchandising sector employment occupy three quarters of all employment in the Hong Kong economic sector, which accounts for 40% of all employment. This is a significant figure when, compared to the economy overall, where only 25% of people are employed permanently. The other majority of those working are part time workers employed in sales and customer service occupations. Figure 2.1 outlines the proportion of full and part time employment in the merchandising sector by gender. Source: Survey by National Employment Institute 2.4.1.1 Job retention in the labor force as a whole The prevalence of staff turnover when compared with other sectors of the economy is particularly evident in the merchandising sector. This trend is also reflected in employment across the Hong Kong, particularly in the service industries. The numbers of staff entering the labor market has dramatically increased over the past thirty years and this rise in numbers has mainly been in by young people with low skill (Burke and Nelson 2002; Davidson and Burke, 2002). Because of this influx of young energetic minds quickly induces training for the staff. After gaining much needed experience then leave the industry for more lucrative jobs in other sectors. Youthful persons in the Hong Kong are far more likely than middle and old aged persons to work as part-timers (EAC, 2004). According to the National Office of Statistics, in 2005, 42% of young employees in the Hong Kong worked in the sector compared to just 9% of old people. Interestingly, the number keeps on increasing in the industry whe reas companies are reporting a high staff turnover hence posing a big threat to company survival in the highly competitive industry (EAC, 2004). Source: Survey by National Employment Institute 2.4.3 Explanations for the prevalence of staff turnover among staff in the merchandising sector Traditionally, the predominance of staff turnover is largely attributed to the level of education and other academic qualifications (e.g. those with degrees go for more lucrative jobs in other lucrative industries vacating there positions) traditionally occupied by them which limits the productivity of the company (Thompson, 2004; Stillsmart, 2004). When addressing the merchandising sector specifically, Lynch (2003) comments that it is the very nature of the merchandising industry that contributes to the high proportion of turnovers. In the merchandising industry, recruitment is largely secured from the local labor market, staff requirements vary due to seasonal demands and employees are often required to work unfriendly hours as outlets open longer. These are all factors that lead to the reduction of morale and interest in the jobs within any organizational sector, and specifically the merchandising sector. In addition, Lynch (2003) further suggests that due to these delimiting fact ors in the industry and the continuous fluctuation of workforce in particular, potential merchandising companies are provided with an available pool of labor that accepts inferior terms and conditions of employment, as staff attempt to resolve their need to educate and retain their staff. 2.4.3.1 The under representation of staff interests in the merchandising sector by executives and senior officials Official statistics show that there is a higher proportion of college educated in managerial and senior occupations in the merchandising sector than in comparison to the economy a whole. It is important to note, however, that if the representation of staff; male and female, skilled and unskilled were equal throughout the sector. Furthermore, low skilled staff tends to predominate in certain types of management positions including personnel, which are roles traditionally associated with low skilled. 2.5 Recruitment and Retention of Paid Staff It can be surely asserted that, paid staff is a vital part of the retail and merchandising sector. Lynch (2003) further suggests that almost half (40%) of Canadas estimated 161,000 nonprofit and voluntary organizations has least one paid staff member. The sector as a whole employs just over 25% of the total economy. Twenty percent of paid staff in merchandising organizations is in permanent positions and 56% work full-time. The survey asked all organizations involved about the challenges they face recruiting the type of paid staff they need. Twenty-eight percent of organizations said that this is a problem for them; 8% said that the problem is serious. Organizations with paid staff were also asked if they have problems retaining staff. Nineteen percent said that they do, with 8% saying that the problem is serious. As a group, problems relating to paid staff were reported less frequently than other types of capacity challenges. Nevertheless, challenges relating to paid staff are signi ficant for some organizations. 2.5.1 Size of Paid Staff Complement In general, the more paid staff an organization has, the more likely it is to report problems with staff recruitment and retention. Forty-one percent of organizations with 13% of paid staff members reported problems recruiting paid staff. This rises to 30% among organizations with 20 to 50 staff members, 63% among those with 100 to 500 staff members, and 73% among those with 1000 or more staff members. The relationship between the number of staff an organization has and staff retention problems is less pronounced. Seventeen percent of organizations with one to four staff members said this is a problem for them. This increases to 26% among organizations with 100 or more staff members (Stillsmart, 2004). Source: Survey by National Employment Institute 2.5.2 Reliance on Paid Staff Lynch (2003) suggests the greater the percentage of an organizations workforce that is comprised of paid staff (As opposed to volunteers), the more dependent on paid staff the organization can be said to be. The more reliant an organization is on paid staff, the more likely it is to report difficulties employing and retaining staff. Lynch (2003) further suggests that this relationship is particularly strong for staff recruitment. For example, among organizations in which staff makes up one-third or less of the workforce, 15% said that staff recruitment is a problem for them and 19% said that staff retention is a problem. Nevertheless, among organizations in which staff comprises two thirds or more of the workforce, 54% said that staff recruitment is a problem and 20% said that staff retention is a problem (Stillsmart, 2004).. Source: Survey by National Employment Institute 2.6 The Glass ceiling theory The under representation of minority group in management positions in the merchandising and other occupational sectors has led theorists to assert that a ‘glass ceiling exists. The minority in this case includes: physically handicapped, less educated and women. The term ‘glass ceiling is used to reflect the ability of and minorities to view the world above them but the metaphorical ceiling prevents the minorities from accessing the better opportunities they can view. This glass ceiling effect occurs when minorities with equivalent credentials as the other employees, i.e. those who traditionally occupy positions of power within organizations, are prevented from accessing top jobs simply because they have particularly weaknesses (Davidson, 1997; Powell, 1999; Konrad, Prasad and Pringle, 2004). Nevertheless, the proportion of minorities in management has increased over the past three decades in almost all countries and legislation in some countries (e.g. Affirmative Action L egislation in the U.S. and Canada) has contributed to this trend (Powell and Graves, 2003). Despite this encouraging increase, recent research by Catalyst (2005) has shown that the glass ceiling is firmly in place. In the U.K., seventy-eight Financial Times Share Index (FTSE 100) companies in 2004 had physically challenged directors, up 13% from the previous year. However, only eleven FTSE 100 companies had female executive directors, which was below the 2002 figure and twenty-two of the FTSE 100 boards in 2005 were all-male (Singh and Vinicrombe, 2005). These statistics largely reflect the experiences of white staff. It is important to highlight that black and ethnic minority staffs across the globe often face significant hurdles. Although there is a general lack of data on ethnicity and employment or physical handicap and employment, ethnic minority employees are under- represented at senior and professional levels in the labor market (Commission for Racial Equality, 2004). In Hon g Kong in 2004 for example, 17% of ethnic minority men were managers or senior officials compared to 10% of ethnic minority staff. The highest percentages of staff and men in these positions were Indian and Chinese (Commission for Racial Equality, 2004). Research has highlighted that a glass ceiling exists even in occupations where staff predominate. Approximately 90% of nurses, for example, are female but male nurses often experience greater career success than female nurses (Nursing and Midwifery Council, 2005). The number of women studying merchandise in England now outnumbers men (Davidson and Burke, 2004) but partners of top merchandise firms continue to be predominantly men. An examination of data from the top 10 ten merchandise firms in the Hong Kong in 2005 revealed that on average, 15% of female partners in the top 10 merchandise firms are women (The Merchandise Society, 2005). Recent research has highlighted that whilst women and physically challenged are now achieving mor e senior roles, they are more likely than men to find themselves on a ‘glass cliff (Haslam, 2005). According to Haslam (2005), this is because staff are more likely to secure positions of leadership when organizations are not performing at their optimum level. This means that their appointments are made under more risky circumstances which make them more uncertain. This suggests that not only do staff experience hurdles to achieving senior roles; they are placed under greater scrutiny and face increased pressures when they do reach leadership positions. The disadvantaged experience of the glass ceiling is an important area of study and has implications for the future development of talent in organizations of all sectors including merchandising. Research has shown for example that frustrated by the glass ceiling, many workers quit and start their own businesses (Powell, 1999; Davidson and Fielden, 2003). This can have a detrimental affect within organizations as competent and e xperienced staffs remove themselves from the selection pool. 2.5.1 Pay Differences However, research shows that staff leaders and staff at all levels of the workforce are generally paid less than men with equivalent skills, training and experience, for performing the same roles. In 2005, the percentage difference between the average hourly earnings of staff working full-time in Great Britain for example was 17.1 % (Equal Opportunities Commission, 2004). In the US, staffs earn approximately 77 cents for every dollar earned by men (Retailers Bureau data, 2000, in Nelson and Michie, 2004). The Equal Opportunities Commission in the U.K. (2005) highlights three main reasons for this pay difference. Firstly, there is discrimination in pay systems. Staff are paid less than men for performing the same roles. Secondly, ‘occupational segregation exists. Many employees is concentrated in low paid jobs. Thirdly, staffs assume caring responsibilities for children and other relatives/dependents, which affects their progression at work due to the lack of flexible working. 2.6 Perspectives on barriers to staff in management Authors have identified an array of complex factors that contribute to the existence and pervasive nature of the ‘glass ceiling. Three main perspectives have been offered to explain the adversity facing staff aspiring to senior levels within organizations. These are commonly referred to as the ‘person centered or ‘gender-centered approach (Powell, 1999), the organizational structure perspective (Fagenson, 1993; Kanter, 1977) and the social systems perspective. It is widely acknowledged that the glass ceiling is a result of a culmination of these three main perspectives (Omar and Da

Free College Essays - Fear in William Faulkners A Rose for Emily :: A Rose for Emily, William Faulkner

The Power of Fear in A Rose for Emily   A Rose for Emily   Life is fickle and most people will be a victim of circumstance and the times. Some people choose not to let circumstance rule them and, as they say, â€Å"time waits for no man†. Faulkner’s Emily did not have the individual confidence, or maybe self-esteem and self-worth, to believe that she could stand alone and succeed at life especially in the face of changing times. She had always been ruled by, and depended on, men to protect, defend and act for her. From her Father, through the manservant Tobe, to Homer Barron, all her life was dependent on men. The few flashes of individuality showed her ability to rise to the occasion, to overcome her dependency, when the action was the only solution available. Like buying the poison or getting money by offering china-painting classes.   Life is sad and tragic; some of which is made for us and some of which we make ourselves. Emily had a hard life. Everything that she loved left her. Her father probably impressed upon her that every man she met was no good for her. The townspeople even state â€Å"when her father died, it got about that the house was all that was left to her; and in a way, people were glad†¦being left alone†¦She had become humanized† (219). This sounds as if her father’s death was sort of liberation for Emily. In a way it was, she could begin to date and court men of her choice and liking. Her father couldn’t chase them off any more. But then again, did she have the know-how to do this, after all those years of her father’s past actions? It also sounds as if the townspeople thought Emily was above the law because of her high-class stature. Now since the passing of her father she may be like them, a middle class working person. Unfortunately, for Emily she bec ame home bound. She didn’t socialize much except for having her manservant Tobe visit to do some chores and go to the store for her. Faulkner depicts Emily and her family as a high social class. Emily did carry her self with dignity and people gave her that respect, based from fear of what Emily could do to them. Emily was a strong willed person especially when she went into the drug store for the arsenic.

Markets - why they fail Essay -- Economics

Markets - why they fail * Allocative efficiency occurs when resources are distributed in such a way that no consumers could be made better off without other consumers becoming worse off. * Dynamic efficiency occurs when resources are allocated efficiently over time. * Productive efficiency is achieved when production is achieved at lowest cost. * Technical efficiency is achieved when a given quantity of output is produced with a minimum number of inputs. Consumer and Producer Surplus ============================= Text Box: A perfectly competitive market consists of: Many firms in the industry- therefore firms cannot manipulate the prices. Low barriers to entry and exit- if profits are achievable new firms can enter the market at little cost. Homogenous products- no branding allows new entrants to win customers fairly. Perfect knowledge- consumers and producers know everything about market ´s prices and products. In a perfectly competitive market: There is productive efficiency- because costs must be kept at a minimum to break even. There is allocative efficiency- producers will produce no more or less than consumers demand at a given price. There is NOT dynamic efficiency-as there is perfect knowledge, there is no incentive for R&D. Types of Market Failure ======================= 1. Monopoly Power ================= * A monopoly exists of there is only one firm or supplier in the economy * A firm holds a monopoly share if it holds a market share that exceeds 25%. Why monopoly power market failure exists ---------------------------------------- Firms gain monopoly powers in the long run because of barriers to entry to the industry, preventing other firms entering th... ...more serious market failures. E.g Common Agricultural Policy dumping excess supply of food caused by minimum pricing on world market, thus crashing world prices. Therefore farmers outside EU experience lower incomes. Public choice theory - The government may not make decisions to maximise economic welfare but will instead make decisions on spending and taxation that will favour consumers, who are voters. Local interests (Textile plant in constituency, tax on imports) Favouring minorities (middle class voters more likely to vote than working class) Conflicting Personal Interests (corruption) Short-termism (do what is best on the short term but ignore the long term consequences because there is re-election every 5 years) Regulatory Capture - Groups such as monopolies can strongly influence the way they are being regulated to their own advantage Markets - why they fail Essay -- Economics Markets - why they fail * Allocative efficiency occurs when resources are distributed in such a way that no consumers could be made better off without other consumers becoming worse off. * Dynamic efficiency occurs when resources are allocated efficiently over time. * Productive efficiency is achieved when production is achieved at lowest cost. * Technical efficiency is achieved when a given quantity of output is produced with a minimum number of inputs. Consumer and Producer Surplus ============================= Text Box: A perfectly competitive market consists of: Many firms in the industry- therefore firms cannot manipulate the prices. Low barriers to entry and exit- if profits are achievable new firms can enter the market at little cost. Homogenous products- no branding allows new entrants to win customers fairly. Perfect knowledge- consumers and producers know everything about market ´s prices and products. In a perfectly competitive market: There is productive efficiency- because costs must be kept at a minimum to break even. There is allocative efficiency- producers will produce no more or less than consumers demand at a given price. There is NOT dynamic efficiency-as there is perfect knowledge, there is no incentive for R&D. Types of Market Failure ======================= 1. Monopoly Power ================= * A monopoly exists of there is only one firm or supplier in the economy * A firm holds a monopoly share if it holds a market share that exceeds 25%. Why monopoly power market failure exists ---------------------------------------- Firms gain monopoly powers in the long run because of barriers to entry to the industry, preventing other firms entering th... ...more serious market failures. E.g Common Agricultural Policy dumping excess supply of food caused by minimum pricing on world market, thus crashing world prices. Therefore farmers outside EU experience lower incomes. Public choice theory - The government may not make decisions to maximise economic welfare but will instead make decisions on spending and taxation that will favour consumers, who are voters. Local interests (Textile plant in constituency, tax on imports) Favouring minorities (middle class voters more likely to vote than working class) Conflicting Personal Interests (corruption) Short-termism (do what is best on the short term but ignore the long term consequences because there is re-election every 5 years) Regulatory Capture - Groups such as monopolies can strongly influence the way they are being regulated to their own advantage

Balboa, a Spanish conqueror and explorer :: History

Balboa, a Spanish conqueror and explorer. Vasco Nuà ±ez de Balboa, a Spanish conqueror and explorer, was the first to see the coast of the Pacific Ocean. He saw the ocean in September of 1513, from the top of a mountain of what is now Panama. On September 29, 1523, Balboa claimed it and all its shores for Spain. His findings opened Spanish explorations and conquests along the western coast of South America began. The Spanish called the ocean the South Sea because it lay south of the isthmus of Panama. In 1520 a Portuguese explorer named Ferdinand Magellan sailed through it and named it the Pacific, meaning peaceful, which until this day the name remains the same. Balboa ´s early life was a normal one. He was born in Jerez de los Caballeros, Spain. His father, whom we know little about, did not have influence or wealth. When he was young, Vasco served in the household of a rich nobleman in Moguer, one of Spain’s main ports. After Christopher Columbus ´ voyage in 1492, more sailors were taken to the New World, and many sailor stories could be heard throughout Spain about the new lands across the ocean. The opportunities attracted Balboa, who in 1501 joined a Spanish voyage to South America. They explored the north coast of what is now Colombia. There were not enough people to attempt a settlement. In 1502 they sailed to the Hispanola, the main Spanish base in America. Vasco had a very rough time making a living on the island. For a time he even raised pigs there. Balboa ´s rise to fame was one that happened little by little. In 1509, the first expedition to colonize the mainland of South America left Hispanola. Balboa wanted to join this expedition, but he had fallen heavily into debt, and he was prevented from leaving Hispanola. On the mainland, the Spaniards established the settlement of San Sebastian along the eastern coast of Uraba. In 1510, Vasco stowed away on a ship that carried some supplies and new settlers to the colony. When they reached the mainland, they met some of the San Sebastian settlers who had abandoned the settlement because they lacked food and the Indians were very dangerous there. The two groups united and went back to San Sebastian. Balboa, who had more experience on the continent than the rest, suggested moving to the western side of the gulf.

Ginsters Report

GINSTERS Table of Contents Introduction and Background Ginsters is the main brand of the Samworth Brothers, a privately owned family business active in various food sectors. Its product range includes pasties, savouries, pies, wraps and sandwiches. Ginsters is based in Callington, Cornwall. The brand has been building its credentials as authentically Cornish and a local product with local ingredients. More recently it’s also trying to associate its brand with the image of fresh and quality ingredients. This is reflected on packaging, advertising and new product development (Ginsters Official website, 2010). The task at hand is to discover the Critical Success Factors for Ginsters, therefore analytical tools and frameworks were used such as SWOT, STP and the Marketing mix analysis. The external and competitive environment were also analyzed. The first section includes the critical evaluation of Ginsters’ CSFs, while the second section is concerned with developing recommendations for a three-year strategy for the firm. 1. Ginsters’ Critical Success Factors 1. 1 CSFs According to Rockart and Bullen (1981), Critical Success Factors (CSFs) are the limited number of ways and the factors that are fundamental for the continual successful performance of a company. The identification of CSFs is important because it allows organizations to focus their efforts on building their capabilities to support their CSFs. On the other hand, it may even allow firms to assess whether they have the capabilities to develop the necessary requirements to meet CSFs. Daniel (1961) was the first to introduce the concept of CSF. The concept was then used to assist in defining the CEO’s information needs that are most critical for a business (Rockart, 1979) (Zwikael and Globersonz, 2006). The CSFs method is straight-forward, however it has a complexity as it can be viewed from several perspectives. Geller (1985) points out that CSFs can be generic to a given combination of conditions in the industry, market and external environment. They can also be context specific in terms of the organization. Furthermore, Rockart and Bullen presented five key sources of CSFs, the industry, competitive strategy and industry position, environmental factors, temporal factors, and managerial position. It is also important to note that CSFs can be monitored or measured to ensure they are still important and valid as they can change over time (Brothererton, 2004). 1. 2- Human resources development The first CSF for Ginsters is its ability to develop human resources. Embedded in its strategy is the recognition that people are important assets of the organization (Ginsters Official Website, 2010). This is evident as it achieved the status of top-service supplier to UK supermarket giant Sainsbury’s. Ginsters came up with a way of enhancing the efficiency and productivity of its workforce. It designed and implemented a unique branded management-development program, which it dubbed ‘‘Platinum’’ (Politt, 2006). This cut staff turnover to half, mitigated absenteeism, increased staff stability, reduced production-line down time building on improved relationships between engineering and production, and succeeded in offering higher services to its supermarket customers, following the introduction of a new training course (Politt, 2006). . 3 Brand Image and Advertising A full STP analysis conducted for Ginsters (see Appendix) has derived important conclusions on Ginsters success factors. The decision to produce and distribute products solely in the United Kingdom has ultimately been positive and successful for the company, as it has increased its UK cus tomer base. In 2009, Ginsters spent over 1 million pounds on advertising, which has generated considerable attention for the company (Mintel Report, 2010). Ginsters has consistently used advertising and it leads the pack in the pies and pastries category of the market (Mintel Report, 2010). This is important and is evident through its great brand reputation along with goods that represent quality and trustworthiness. Ginsters has always promoted its Cornish heritage, emphasizing the importance it gives to local sourcing and the use of 100% British ingredients. The brand has also evolved immensely. Ginsters marketing scheme has developed to highlight the importance of quality ingredients that are put in the pasties. This is of critical importance because consumers are confident that Ginsters products will deliver on quality and taste. Understandably, the pie and pastry industry is highly competitive with Ginsters competitors being able to produce virtually all the products that Ginsters is able to produce. That being said, Ginsters success lies in its convenience and impulse sector largely due to sales of chilled savoury pastry. In fact, Ginsters has been recognized as the number one ‘food on the go’ brand in the last four years (Doonar, 2004). 1. 4 Fragmentation of mealtimes and rise of chilled food industry & The ability to target and reach segments of market These are two important and correlated success factors for Ginsters. The chilled and prepared foods market has evolved in the past 10 years and has become a very dynamic area of the food market. This is largely due to the trend in consumer behaviour where lifestyles are influencing mealtime. This has made mealtimes more fragmented, informal and less important. This environmental social change has resulted in suppliers and retailers placing more emphasis on the chilled cabinet. Moreover demand for chilled foods has soared. This is a type of environmental CSF is one in which the firm has no control over. However, looking at Ginsters reaction to this environmental change is also a strategic critical success factor. Ginsters understood the impact of these changes on consumer purchasing behaviour and they adapted their products to meet this demand. This becomes clear in their ability to target the largest group that conforms to this environmental change, which are young people and business professional, and reaching their target by presenting their products in the right locations such as petrol station, convenience stores and university union shops (Keynotes food industry report, 2010). Ginsters has also benefited from getting the right product mix to serve their target market as the SWOT analysis shows that its products are location independent, convenient, deeply filled, easy to eat and not unhealthy (Mintel Report, 2010). 1. 5 value chain Another critical success factor of Ginsters has been the way it incorporated its value chain. In terms of inbound logistics, Ginsters has chosen a direct channel approach that is characterized by low proximity. The place of Ginsters manufacturing facility is within a 20 mile radius of the raw material providers. It forms a vertical marketing system (VMS) and more specifically an administered VMS. This type of cooperation helps Ginsters have a great degree of control. The system provides 35% of the total raw materials and the target is to reach 50% (Hunt, 2005). Furthermore, concerning operations, increased investments in production technology by introducing automation systems with quality control, ensured the end-quality of the products and also decreased costs (Growth at Ginsters, 2004; Drives cut pastry production costs, 2009; Keeping an eye on the Pie, 2002; Accurate pack coding easy as a pie, 2005). Outbound logistics have also been a subject of focus for the company with a fleet of vans that place emphasis on delivering to 10000 companies during the peak hours (Brooks. 2004). A company-owned distribution system makes it possible to plan and incorporate delivering objectives, as relying on others would have made that difficult. Recommendations for three year strategy The UK has been one of the major economies that are still in recession. Due to the economic crunch, businesses are facing grave troubles to cope with their existing businesses and are trying to raise capital for investment into new businesses. Therefore, Ginsters should focus on improving its existing capacity and making better use of its factors of production. This can be achieved by reducing its working capital, increasing inventory turnover and implementing employee learning and performance improvement training programs similar to the platinum program undertaken 4 years ago (refer to 1. 2). However, the company must establish some long term objectives as there are signs of recovery for the UK economy in the years to come. The Bank of England estimates that the economy will get back on track by 2011 and the HM Treasury has published independent forecasts predicting that by the same year the GDP growth will be a mean 2%. It should plan for the development of smaller markets and target market segments which although less in size, have excellent expected growth rate. Ginsters is targeting youth and working people, but without offering Halal foods as compared to their competitor Pukka pies. According to The Times UK, Muslim population has been increasing 10 times faster than the rest of the communities in the United Kingdom. It has grown by 0. 5 million and reached 2. 4 million in four years from 2004 to 2008 and expected to grow at the same pace as revealed by office of national statistics. Therefore, Ginsters should adopt a market development strategy to target the Muslim community in the UK. It can incorporate this strategy by introducing it into the heavily populated Muslim areas. Ginsters has been spending a lot money on advertisements and has been successful in conveying the positive image of the company to the people. Its latest TV brand shows that it puts quality ingredients in its products, but it does not convey the clear message that its food is more healthy. According to the survey conducted by Mintel, 16 % of people think that Ginsters food is unhealthy as compared to its competitor Pork Farms which was marked unhealthy by only 12 % of them (Mintel, 2010). The reason for this misconception may have arisen from its marketing slogan, ‘Real Honest Food’. This portrays that Ginsters products are of quality and authentic, however fails to demonstrate that it has taken healthy eating into consideration. Therefore, the firm should seriously plan for new advertisements and promotions that give a more clear picture of Ginsters as a healthy food manufacturer. To convey the idea of healthy foods, the company should take advantage of the ongoing and upcoming events that represent Ginsters target market and could be helpful in promoting its message. It is recommended that Ginsters should become an official sponsor of the 2012 Summer Olympic Games. It can make new and innovative advertisements in the Olympic Games that can help produce a healthier image. Sponsorship will also enable the firm to increase the awareness of its products and influence consumer behaviour patterns thereby leading to increased sales. It will also help to enhance the brand image in target groups’ minds and develop a disposition to change behaviour towards buying the promoted brand, thereby leading to improved revenues (Smolianov et al,1999). Ginsters support of a major international event will help in conveying its message to billions of people more accurately and positively. It costs nearly 10 million pounds to become a three tier sponsor. Ginsters had pre-tax profits of 45. 2 million in 2009 and paid dividends amounting to 16. 2 million, up from 14 million in 2008 (Bloomberg Database, 2010). Assuming a stable dividends growth, there is the potential for worldwide promotion and brand recognition. Instead of paying dividends out, it should deposit them with a bank or place them in investment grade securities in order to grow at an amount sufficient enough to secure a place in the top sponsors of the Olympic Games. TV advertising during the Olympics will also increase brand awareness among live audiences who watch TV broadcasts, which will ultimately pave the way to Ginsters going global. In 2008, a record breaking 70 million viewers tuned to NBC to watch the opening ceremony, not mentioning the other international broadcast stations (The Washington Post, 2010). The cost for a 30 second spot is expected to reach the 400. 000 USD level, signifying the importance of the particular event. In Ginsters case, the advertising strategy should include all forms of digital and physical advertising (television, radio, press, online, billboard, in-store etc. . In late 2009 Ginsters decided to redefine its brand image and target a broader market segment. It tried to appeal more to mothers and fathers while dropping its image as simply a snack. To continue to accomplish this, a massive advertising campaign is desperately needed. Along these lines, the company should negotiate a deal with BBC1 and ITV1 to spo nsor the most popular programs in UK television. Programs that aim to captivate the interest of thousands of British families, which comprises the new target group for Ginsters. Such programs would include â€Å"Eastenders†, one of the most watched and long running soap operas, â€Å"Coronation Street†, the longest running drama series in the world still to be in production and â€Å"X Factor† a singing competition with over 13 million viewers each week (Broadcaster’s Audience Research Board, 2010). Appendix STP Analysis: | Ginster’s| Pukka Pies| Segmentation| Products are sold exclusively in the United Kingdom highlighting the fact that Ginsters is a domestic company. Products are grouped towards the younger population of both sexes due its convenience. The family appeal is one in which Ginsters strives to achieve as they portray a family environment in their advertising. Socio-economic class is not of vital importance with Ginsters as they want to cater to the complete market. The upper class can rely on a quality product while the lower class can rest assured that the product is competitively priced. | Products are sold all across Europe. Countries include Austria, Cyprus, France, Gibraltar, Greece, Holland, Hong Kong, Malta, Portugal, Spain, and the United KingdomProducts are grouped for people of all characteristics, specifically the middle-class family. With a wide variety of products including frozen and chilled pastries, it is important for Pukka Pies to capture the full European market, rather than segment. | Targeting| Products are targeted towards the young students as evident in their separate online education portal and their collaboration with different colleges and universities. Also, they are actively involved in surfing, football, and music festivals which appeal to young generation. They targeted the meat eating and non-Islamic sector as they do not have a Halal pastry| Products are targeted towards outgoing events to garner considerable public interest. Examples include the Pukka Pies England band as well as major sponsorships to major sporting events. | Positioning| The pie and pastry market is a competitive one in which each company does not differentiate it s positioning too much. Ginster’s remains unique and relevant amongst its United Kingdom customers by positioning its domestic appeal. Ginsters have strategized to provide quality food for a reasonable price. As compared to competitors, Ginster’s is ranked amongst the top for pricing. Quality is of utmost importance and therefore they position themselves to advertise quality and honesty of foods. Media advertising, over 1 million pounds in 2009, was largely concentrated on the target markets including students and mothers. This was done by adding more sandwiches to cater to women as well as advertisements at sporting and recreation events for students. | The differentiation by Pukka Pies is their international appeal. They strive, not solely to dominate a market, however to diversify themselves into different markets. Penetration strategies is their positioning technique as their products are available across Europe. | Marketing Mix Analysis Products: Ginsters has got a huge product line consisting of 58 types of pasties, slices, pork pies, hot pies, savories, sandwiches and wraps as compare to its competitors, pukka pies and pork farms. All Ginsters raw material comes from the farms and suppliers present in Cornwall. They have different specialize supplier who provides them with fresh and pure raw material. These farms and suppliers includes Hay farm, torpoint for vegetables, Bocaddon farm, Lanreah for Cornish soft cheese, Cornish orchards, duloe for apple juice to capture that authentic west country flavour, jaspers of treburley for beef and David stone creamery for fresh cheese. Ginsters official website, 2010) Ginsters focus on Chilled products whereas Pukka pies have variety of categories including frozen backed, chilled backed, frozen backed wrapped, frozen unbaked range, frozen pastry (Pukka pies official website, 2010) If we analyze Ginsters product line we find that they have 21 types of different sandwiches as compare to pies and pasties which are few in numbers (Ginsters official website, 2010). Whereas Pukka pies and pork farms have less variety than Ginsters. Pukka pies have some additional flavour of pies including kidney and potato and they also sell halal food (Pukka pies official website, 2010). Furthermore pork farms have bakes and scotch eggs (pork farms official website, 2010) Price: Ginsters product pricing is almost same as compare to Pukka pies and pork farms. For example steak pies from Ginsters and Pukka pies cost exactly 1 ? but in some cases Ginsters is expensive for example Ginsters pork pie is 1. 29 ? and Pork farms pork pie is 0. 91 ? (Tesco Official website, 2010). Therefore we can say that Ginsters have a comparable pricing strategy with most of its product line but with some of the market leading products they show skimming pricing strategy as well. Place: Ginsters only Target UK market. They follow wholesale sale strategy. They have distributors all over UK. They keep their products in big super markets like Tesco, Sainsbury etc. The major area where Pukka pies leaves Ginsters behind is its sale locations. Pukka pies are selling in Austria, Cyprus, France, Gibraltar, Greece, Holland, Hong Kong, Ibiza, Lanzarote, Malta, Portugal, Spain and Tenerife other than UK. Pukka pies official website, 2010) Promotions: When it comes to promotions, Ginsters are spending a lot of revenue on advertisement and promotional activities like charity, supporting local teams etc. The differentiating part of Ginsters promotional activity includes collaboration with different universities including Plymouth University and community colleges at Callington, Launcest on, Tavistock and Saltash colleges and universities. Ginsters also have their online educational portal. This shows that they are targeting youngsters from schools, colleges and universities. For the new promotions Ginsters is focusing on introducing some fruit pies as well. Their promotional strategy seems to be product benefit advertisement strategy. As compare to Ginsters Pukka pies have a large variety of souvenirs including footballs, posters, cups, caps etc. They have an online portal where people can buy their souvenirs. As compare to both of them pork farms focus on introducing new packaging and actively conduct live shows with consumers to test their products and tells them of their products taste. Pork farms are teaming up with Peperami and Branston to launch a number of co-branded recipes. The new partnerships will see a Spicy Hit sausage roll with Peperami and two Pickle Hit sausage rolls – one with Branston Pickle and cheese and one with Branston Pickle and sausage meat – available from mid-March 2010. The company is also launching a Pork and Branston Pickle Pork Pie. (Ginsters official website, 2010; Pukka pies official website, 2010; Pork farms official website, 2010) SWOT Analysis: Strengths * Product variety in comparison to competitors places a strong emphasis on new product development to create innovative, exciting products to enhance its core product range. Ginsters launched mini pasties in Q2 2010 to tie in with the upcoming picnic season and the on-the-go snacking market. * Ganisters position in more than one market and covering them successfully due to their diverse products * Ginsters’ products have a number of characteristics that make them a highly popular lunchtime food firstly their products are location independent and can be eaten practically anywhere. Secondly their products are convenient and can be found in many locations. Furthermore their products are filling and positioned as big eats. Finally the products are easy to eat and are pre-packed. * Advertisement and promotion strategy Ginsters’ promotional activities have always highlighted its British provenance and local sourcing. Moreover their brand image Fresh and hygienic food which is and advantage in the current customer behaviour trends. * HRM program that allows for organisational learning * There supply chain is short therefore saves them money and increases quality * Manufacturing processes are fully automated speed up production and inspection and quality programs to be easy. Weaknesses The product range is not comprehensive and there are some niches they did not cater for, such as the vegetarian market the Halal and Kosher markets. * Ginsters operate only in the UK where competitors such as Pukka Pies operate internationally they are pies are selling in Austria, Cyprus, France, Gibraltar, Greece, Holland, Hong Kong, Ibiza, Lanzarote, Malta, Portugal, Spain and Tenerife other than UK. * Although Gins ters are trying to convey that they are a healthy product. This message is not reaching other market segments, such as women and families. There image as a healthy product is not strong. Despite a high rate of new product development, the favourite lines continue to be the BLT, prawn mayonnaise, cheese and pickle, chicken salad and egg and cheese Opportunities * Increase emphasis on health awareness products. Interest in healthy eating will undoubtedly outlive the recession and there is scope to increase the number of functional products in many areas of the market. * Ginsters can explore minority market niches such as, vegetarians and Halal foods. This can be achieved by new product development. * Utilisation of production capabilities by exploring International markets, as competitors are present outside the local market. Despite the recession, sales of indulgence products such as desserts may also grow if suppliers can position the products as relatively inexpensive treats. Threa ts * One of the longer-term challenges that the pies and pasty category will face is whether consumers will stick to the category when the economy improves and they have more disposable income. Pies and pasties offer consumers a low cost meal that is convenient, but does not tick the healthy eating box and so requires manufacturers to find ways to reformulate their product ranges to make them healthier. When looking at the things that worry consumers the most, their financial situation and the economy supersedes any concerns they may have about their health, so while they face financial challenges, the health credentials of the food they are eating may be of less importance if it proves to be more cost efficient. * Ginsters needs to ensure that they maintain their above-the-line support of their brands to ensure they are top of mind when consumers are looking for a quick snack. The recession will strengthen the appeal of own-label products and consequently affect NPD and marketing, which will culminate in undermining value growth in the market. References Accurate pack coding easy as a pie (2005). Packaging Magazine, 8 (1), pp. 18-19. EBSCOhost [Online]. Available at http://web. ebscohost. com (Accessed:10 November 2010) Bank of England Quarterly Bulletin (2007). 2nd Quarter, 47(2), pp. 317-329 Bloomberg Database (2010). 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College Athletes Essay

There are thousands of athletes playing for different colleges. They put their time and effort in it, yet they don’t get paid. When athletes play a sport, they have even more stuff to worry about than a regular student. They have to worry about their grades, staying fit to play, stay healthy, attend to practice every day there’s practice, and then after practice go home and do all their work even though they are tired. How much do they get paid for going through all that? Zero dollars. College athletes should get paid to play too. The average salary of a third division college coach is forty five thousand dollars a year. An average third division athlete makes nothing. Why are coaches being paid and not the athletes? Yes the coaches are giving up their time to coach the players, but the athletes are too, and they are also risking themselves of getting injured every time they step in to play or practice. If an average NBA player makes about ten million dollars a year then why doesn’t a college basketball player get paid? There is this new rule that when a college gives away a scholarship, it can be renewed. That means that if a player quits the team or gets injured to the point that they can’t play anymore, the college can renew the scholarship and take it away from the player and give it to another athlete or someone else. That is not fair because if a player gets a serious injury for playing, the college can just take away their scholarship, and their career gets ruined. One of examples involved Texas Christian University. Running back Kent Waldrep was paralyzed in a game against the Alabama Crimson Tide on October 26, 1974. TCU paid his medical bills for nine months, then cut him loose. They also took away Adam’s scholarship, too. College athletes are human just like every other student. By not giving them the ability to make money and not paying them, colleges and its members are expecting the athletes to live a sub-human existence, and putting them at a disadvantage to finish their college education. Athletes are big money makers for the colleges. College athletics are a big role in making money, and they attract students to their college. Colleges depend on their athletes to produce and maintain the popularity of their school’s name. Many people argue that student athletes should not be paid because they are getting a free education through a scholarship. These people feel that they have already done a lot for them by giving them a scholarship to their colleges. On the other side, people think that the college athletes make enough profit for their colleges , and they argue that the colleges should owe the athletes more than just a scholarship . Student athletes should be given at least small profit from their income. College athletes aren’t allowed to work. How are they going to pay for all the necessary expenses if they come from poor families? This also leads to players accepting illegal money, cars, and clothes. When athletes that have the opportunity to leave school and turn professional they go for it, because college athletes live in near poverty. College athletes live in near poverty because the money they receive isn’t enough to pay for all of their expenses and necessities. The few athletes that graduate from college, that could turn professional before their senior year, stay because their parents support them by sending money. If college athletes are eligible to be paid, there would be more athletes graduating. Paying athletes would be good for everyone and players would go for an education instead of only concentrating on sports.