Literature Review On Flexible Work Practices

Literature Review On Flexible Work Practices This literature review will attempt to appraise and analyse previous works conducted in the field of flexible work practices and work-life balance and its impact on employees. Theories such as Atkinsons flexible firm model (1984), Handys Shamrock organisation concept (1985), psychological contract and Border theory will be used to support this writing. Flexible Work Practices The origin of flexible work practices can be traced back to the 1970s when organizations in Europe experienced challenges as a result of globalization, growth of the product market, advanced technology, and a demand for reduction in the cost of labor (Sarantinos 2007). In response to this, the policy makers recommended two different ways (the low road and the high road) of managing the situation (EPOC, 1999). The`low-road` involves price competition, reduction in earnings and other benefits that were designed for the employees. In contrast, the `high road` includes technical innovation, quality endorsement and the development of the work force. Due to the social orientation of the regulatory authorities and the large number of organizations, the high road was considered to be more appropriate. Employees were however expected to cope with these developments, and this can be regarded as the starting point or the foundation of flexibility for both the employer and the employees (EPOC, 1 999). According to Rose (2008) flexibility is mostly analyzed from the perspective of revolution within the structure of employment relationship and it aids in conforming rapidly to changes in the world of technology and market opportunity. Piore (1998 cited in Rose 2008) argues that flexibility enables the workforce to be multi-skilled and it also promotes a cordial relationship between workers and management towards achieving the organizational goals and objectives. In addition, Dyer (1998) states that the ability to increase workers competencies and involvement will lead to a reduction in the level of absenteeism and increase employee satisfaction as well as the organizational productivity. Furthermore, Armstrong (2006) maintains that flexibility helps in preserving a sense of balance between work and other activities outside work. In a research conducted on Human Resource specialists from 585 organisations in United Kingdom, CIPD (2005) found a rise in the number of employees making us e of flexible contract of employment. However, Pollert (1991 cited in Creagh and Brewster 1998) suggest that drawbacks such as reduced training and development, high job insecurity and low wage should be considered while adopting these practices. It can be argued that there is no widely acceptable definition of the term flexibility in spite of its possible benefits. According to Blyton and Morris (1992: 2), flexibility is defined as the adaptability or responsiveness to pressure and it is generally represented as the opposite of rigidity. Similarly, Bucki and Pesqueux (2000) describe flexibility as the ability to vary according to needs thereby reflecting the ability to stay operational in changing conditions. Furthermore, Benner (2002: 14) states that flexibility refers to the ability to change or react to changes with little penalty in time effort, cost or performance. In addition, (Smith 1989: 203 cited in Legge 2005: 178) defined flexibility as labour market and labour process restructuring to increased versatility in design and greater adaptability of new technology in production. Again, Pilbeam and Corbridge (2006: 104) posit that flexibility is the ability of an organisation to adapt the size, composition, responsivene ss and cost of the people inputs required to achieve organizational objectives. From the above definitions, it is important to note that flexibility is influenced by changes in the economic situation, increased competition, labour market volatility and changes in the world of technology. Wilson et al (2008) explains that different meaning could be ascribed to the term flexibility. According to the author, flexibility can be identified with high commitment work practices and it includes career development, team work, and multi skilling. Presumably, these practices should increase employee satisfaction and motivation and ultimately an increase in the firms competitive advantage. On the contrary, some organizations adopt flexible practices which involve the use of low-priced casual workers for the purpose of meeting changes in customers demand and generating performance benefit. EEF (2009) also maintains that the word flexibility can be analysed from two perspectives. For the employees, flexibility is often used to depict the right to demand for work practices such as home-working, term-time working, part-time working, flexitime and job sharing, annual or compressed hours. Thus, flexibility helps in creating a wide range of motivating jobs and a better working condition for the employees (Dyer 1998). From the employers point of view, flexibility is often used as an abbreviation of the flexible labour markets. It enables the employer to regulate the way work is done in order to meet up with changes in demand (EEF 2009). Thus, flexibility ensures that the organisation remains globally competitive. According to (Bouchikhi and Kimberly cited in Mullins 2007), one of the major challenges that organisations encounter within the flexible labour market is an understanding of individuals wants; and the need to support employee-driven flexibility. Furthermore, Pilbeam and Corbridge (2006) analyzed the term flexibility from two contexts. The first is from the employers viewpoint and it is concerned with the managements pursuit of workers flexibility in order to increase profitability and maximize efficiency. The second aspect is seen from an employees perspective and it is generally addressed by means of rearranging or restructuring of the patterns of work. The study of flexibility from the employees perspective remains the focus of this write-up as it involves the endorsement of flexible working practices to improve work-life balance. Several writers such as (Blyton and Morris 1992; Atkinson 1984; Bramham 1994; Sparrow and Marchington 1998 cited Pilbeam and Corbridge 2006, Lewis et al 2003; Torrington et al 2008; Armstrong 2006; Legge 2005; Dyer 1998) have attempted to identify the different types of flexibility which exists in the workplace. They include functional, numerical, financial geographical, temporal, skills and structural flexibility. Functional flexibility affords management the ability to quickly re-assign workers between different tasks based on jobs requirements (Sisson and Storey 2003). Furthermore, Dyer (1998) maintains that such movement enhances on-the-job training and it also increases employees satisfaction and productivity. Functional flexibility is associated with the core workforce within the Atkinson model (Lewis et al 2003). Atkinson argues that the core workforce is expected to apply their skills across a wide range of tasks in order to contribute significantly to the achievement of organisational success (Marchington and Wilkinson 2008). According to Torrington et al (2008), the rationale behind functional flexibility is to enable employees acquire the skills needed to embark on different assignments, thus ensuring versatility within the work place. However, Legge (2005) argues that functional flexibility is about work amplification and managements ability to exert control over the work force. Nev ertheless, functional flexibility increases employees competencies and ensures a quick response to demand (Mabey et al 1998). Numerical flexibility is the firms ability to increase and reduce the number of work force in response to fluctuations in the demand for product or services (Armstrong 2006). Price (2006) maintains that there is difficulty in achieving this form of flexibility with the core workforce; and Blyton and Morris (1991) conclude that numerical flexibility can be achieved through the use of the peripheral employees within the Atkinsons model. Working practices which incorporates elements of numerical flexibility includes part-time employment, self employment, short-term contracts, job sharing, homework, and agency temps. (Dyer 1998). According to Sparrow and Marchington (1998), numerical flexibility increases employees empowerment because if gives an opportunity for individuals to define their own job. Legge (2005: 178) however argues that one of the reasons why organizations adopt numerical flexibility is to suppress the permanency of employment relationship; thereby making employee redunda ncy an acceptable practice within the employment relationship. (Conclude with statistics) Financial flexibility is the ability of an organization to regulate employment overheads by allocating labour costs to substantiate the supply of and demand for labour so as to increase profitability. It includes payment in relation to performance and the use of local market rates in establishing the cost of labour. To be applied, it requires the utilisation of temporal flexibility as well as the application of non- consolidated bonus pay and non- pensionable payment to steer clear of any expense that encourages a rise in cost (Pilbeam and Corbridge 2006). In addition, financial flexibility supports the implementation of functional and numerical flexibility (Dyer 1998). Temporal flexibility has to do with the arrangement of working hours so as to meet up with production demands. Its aim is to maximise productive time and minimise unproductive time. However, Muller-Camen (2008) argues that the aim of temporal flexibility is to reduce the payment of overtime premium, even though it helps in coping with high customer demand. Geographical flexibility involves the ability of organisation to engage the employee in distant working and it is achieved through better use of technology. To be applied, the employee requires access to organisations facilities from home usually for specific occasion or as situation demands. Arguably, geographical flexibility ensures job security and it enhances efficiency in the execution of work (Stredwick 2000). Forms of flexibility are flexible time, part-time working, overtime, job rotation, shifting, compressed hour, annualised hour, term time Two influential frameworks that address flexibility at the organisational level include Atkinsons (1984) flexible firm model and Handy (1985) shamrock organisation. The flexible firm model was developed by Atkinson in 1984 and it is useful in evaluating the general concept of flexibility (Stredwick 2000). The model contains all the various forms of flexibility discussed above and it also recognises some of the consequences of the flexible work force. Atkinsons (1984) flexible firm Atkinson reinforces an optimist view to flexibility, he argues that economic recession and technological changes have encouraged employers to make their firm more flexible thereby increasing productivity (Rose 2008). Atkinson believes that flexibility addresses the rigidities associated with the rules of employment established under scientific organisation designs where management control over workers was used to increase productivity (Dyer 1998). Atkinsons flexible firm model provides a framework based on breaking internal hierarchical labour markets by creating a core and a periphery workforce; and the author further argues that the flexible firm has a variety of ways of meeting the need of human resources (Torrington et al 2008). The core work force is made up of highly skilled workers (such as management, technical staff and other professionals) who are considered critical to organisational success by their ability to sustain the organisations competitive advantage (Pilbeam and Corbridge 2006). They are highly regarded by the employer, well paid and they are involved in the firms decision making (Torrington et al 2008). In addition, they tend to have development and career opportunities in order to secure their long-term commitment to the organisations. In return, these employees are expected to be functionally flexible by applying their skills across a wide range of tasks in order to contribute significantly to the achievement of organisational success (Marchington and Wilkinson 2008). Whittington (1991 cited in Dyer 1998) however challenge the benefits associated with the core workforce and argues that improved working conditions and better pay is achieved through work intensification. In addition, Ursell (1991 cited in Dyer 1998) maintain that the scope of decision making associated with the core workforce is likely to be very limited and found that budgets, performance appraisals and selection techniques are being used to both monitor and control the extent of autonomy given to the core work force. The peripheral workforce is characterised by low wages, low job security with little or no autonomy in their work Dyer (1998) and are subdivided into several segments. The first group is known as the first peripheral. Employees in this group are drawn from the secondary labour market and they have skills and knowledge profile which is general rather than specific to the core business of the organisation (Pilbeam and Corbridge 2006). They are employed on contracts with some degree of permanence. They are important but not critical to organisation success as their skills and knowledge will normally be readily available in external labour market. Consequently, they cannot expect similar degrees of security as their colleagues from the core even if they display some functional flexibility (Marchington and Wilkinson 2008). Instead of having a career, these group of employees only have job (Pilbeam and Corbridge 2006). They can be regarded as labour on call providing a buffer stock of reso urces enabling the organisation to expand and contract organically Rose (2008); hence they are seen as numerically flexible. Marchington and Wilkinson (2008) however argue against categorising all workers in this group as peripherals because some part time workers are critical to the success of the business given their close contact with customers and their contribution to business goals. Examples include administrative, secretarial, sales, production and supervisory staff. The second peripheral group comprises individuals who find it hard to break into internal labour market and whose employment experiences tend to be precarious, with little realistic prospect of employment security (Marchington and Wilkinson 2008). They consist of beck and call workers (such as caterers, cleaners or assembly workers) characterized by casual, zero hours or core hours contract of employment (Pilbeam and Corbridge 2006). They have a limited contract of employment (either short term or part time) and they enjoy even less security (Torrington et al 2008). In addition, they have relatively restricted reward package and they can easily be replaced. They provide dynamic forms of numerical and financial flexibility and they can be said to have work rather than jobs or career. Examples include cleaners, drivers, caterers etc. Beyond the peripheral group are those individuals who are clearly external to the host organisation but employed by another employer or in self employment (Marchington and Wilkinson 2008). This group also includes labour provided through contracts for services and the sub-contracting of work to other organisations. Workers supplied through agencies also fit into this category (Pilbeam and Corbridge 2006). In contrast to the first and second peripheral, this group also include elite portfolio workers who possess skills for which there is high demand. They provide work on a paid for result or consultancy basis, and where the correspondingly high rewards compensate for any lack of employment security or regularity (Pilbeam and Corbridge 2006). Examples include information technology providers, teachers and lecturers, interim managers or even chief executives. Critiques of the flexible firm model The flexible firm model has been criticised as not been backed up by facts Muller-Camen (2008); and (Legge 2005; Torrington 2008) highlights the vagueness in the model as to whether the model is a description of trends or a prescription of the future. Sarantinos (2007) however claims that the model maintains clarity in classifying the different kind of flexibility and it highlights the methods which organisation are adopting in order to achieve a flexible model. Nonetheless, Dyer (1998) maintains that the notion that organizations have pursued flexibility by introducing core and periphery labor management strategies has been disputed. According to the author, rather than flexibility representing a fundamental shift in the way work is organized, it is more about intensifying the control of capital over labor by using new management techniques. In a research conducted on a group of scientists, Whittington (1991) found that market pressure had forced the research staff (who theoreticall y fall into the core category) to work harder and to respond rapidly to shifting client needs. Subsequently, (Ursell 1991; Smith 1991) argues that although the flexible firm model may use different tactics, the goal of flexible firms is the same as that of management under the Fordist model that of achieving management control over committed workers and utilizing the knowledge of the employee in the pursuit of profit. In addition, the status of the periphery workforce as opposed to the core is also challenged. According to Lewis et al (2003), the flexible firm analyses have a tendency to trigger different feelings among the employees especially the classification of employees into core and peripherals. Furthermore, (Geary 1992 cited in Pilbeam and Corbridge 2006) argues that the division of employee into peripherals perpetuates inequality and contradicts the main maxim of human resource management which is to value and develop employees as the organisations major asset. Similarly, Torrington et al (2008) maintains that this division is incompatible with the best practice approaches to HRM which seek to increase peoples management and development in order to achieve the goals of the organisation. Besides, Torrington et al (2008) also argues that this could lead to a negative effect on employees psychological contract, which according to Lewis et al (2003) is a tool used in analysing the employment relationship that exists between the employer and the employee. HANDY SHAMROCK PSYCHOLOGICAL CONTRACT There have been major changes in the economy (as discussed above) over the last few decades leaving employees with different requirements from work. In addition, employees level of education has greatly improved with an increased knowledge of their preferences, and the ideas they develop exceeds that of the former generation (Stredwick and Ellis 2002). This changes have resulted into a transition from traditional contracts (where the employee perceives that the employer guarantees a job for life in response to their allegiance), to contracts where employees loyalty is dependent on a rise in earnings and increased training (Smithson and Lewis 2003). Such changes have been summarised as a move from relational contracts, depending upon reciprocal trust and commitment, to the one that is transactional, based upon negotiation and short term economic exchange (Herriot and Pemberton 1995 cited in Lewis et al 2003). Arguably, these changes affect employees attitudes and behaviour; and the psychological contract is considered to be a relevant tool in understanding and managing these changes (Conway and Briner 2005). This is because the psychological contract evaluates the individual aspect of employment relationship and this appears to be associated with flexibility advancement (Guest 2004). In addition, psychological contract presents a peculiar insight into the effect of flexible work practices (Guest 2004). It is a concept which has the capacity to explain the transformation that people goes through in the employment relationship (Arnold 1996). The term psychological contract was first used by Argyris in 1960 to explain the relationship which exists between a group of employees and their foreman (Coyle-Sharpiro 2000); though Conway and Briner (2005) argue that Argyris work was not subjected to theoretical analysis. According to Guest (2006), the psychological contract is the perception of both parties to the employment relationship, organization and individual of the reciprocal promises and obligations implied in that relationship. Another definition that focuses more on the employee is by Rousseau (1995). The author defined psychological contract as an individuals beliefs shaped by the organisation, regarding the terms of an exchange agreement between individuals and their organisation. Guest (1998) however argues that Rousseaus definition of the psychological contract is defective because it focuses on employee alone and he stresses the fact that the contract is the perception of both parties to employment relationship. C IPD (2003) further explains that the psychological contract is unlike the formal contract of employment and it is largely unwritten. It focuses on each partys perception of the employment relationship, it involves sincerity, reciprocated trust, and a duty of care; and it is more effective compared to the written contract in affecting employees behaviour (Stredwick and Ellis 2003). Coyle-Shapiro (2000) argues that the content of the psychological contract is influenced by employees view of the employment relationship. A positive psychological contract is directly related to job fulfilment and commitment which ultimately will result in an increase on performance. Similarly, a reduction on performance is likely to occur when the psychological contract is negative. With the introduction of flexible work practices, some employees (especially the peripherals) might assume that the organization has failed in developing their potentials thus reneging on its obligations. In an investigation conducted on some workers in a Swedish hospital, and result shows that individuals on flexible employment demonstrated higher levels of jobs insecurity and reduced organisational commitment (Sverke et al 2000). Arguably workers on flexible contracts are mostly associated with low benefits and they enjoy less opportunity towards training and development (Atkinson 1984). Consequently, they experience job dissatisfaction, mental discomfort and a negative life outside of work Guest (2004); leading to a reduction in loyalty and poor performance regarding organizations objectives. This is known as the violation or breach of the psychological contract (Rousseau 1995). (Morrinson and Robinson 1997 cited in Conway and Briner 2005) however argue that there is a distinction between breach and violation of the psychological contract. Subsequently, Kramer (2006) refers to a breach of the psychological contract as the perception held by someone in a relationship that another person in the relationship has failed to perform the promised obligations; and violation is referred to as the intense emotional reactions that comes with breaches (Morrinson and Robinson 1997 cited in Conway and Briner 2005). According to Conway and Briner (2005), the main way of understanding how the psychological contract affects employees reaction is when breach occurs. Employees who perceive breaches in the psychological contract think about their relationship with the organisation from a negative point of view, and demonstrate increase intention to quit the organisation (Robinson and Rousseau 1994). Similarly, Cortvriend (2004) found that violation is positively related to employee de-motivation, negative attitudes towards the job and withdrawal from the organisation. Furthermore, (Robinson and Morrison 1995 cited in Arnold 1996) found that employees who perceive a violation in their psychological contract usually report negative organizational citizenship behaviour (OCB). OCB is defined as a readiness to contribute beyond literal contractual obligations (Organ 1988: 22 cited in Coyle-Shapiro). Based on the above discussion, flexibility is directly related to perception of job insecurity and a breach of employees psychological contract; as a result, flexibility is portrayed as an unconstructive theory. Guest (2004) however stresses that this should not be used as a global conclusion. Consequently, Marler et al (2002) emphasis the fact that different employees consent to flexible employment for different reasons; hence they should not be treated the same way. Furthermore, Guest (2004) attempted to differentiate between workers on the margin of employment and knowledge worker whose contract of employment is by choice. Workers on the margin of employment are those whose competencies are low and those with poor bargaining power thus they experience unfavourable treatment from employers. As a result, they suffer increase job insecurity and reduced opportunity for training and development. On the other hand, knowledge workers are those who incline towards flexibility and whose em ployment contract is by choice (Capelli 1991). They consist of temporary workers, part-time or even self employed. These workers embrace flexible work practices and they have the capacity to move between employments as they desire. In contrast to general assumptions, workers who choose flexible contract enjoy higher job satisfaction and they suffer no insecurity in their employment. In a general research conducted by the IPD into the present disposition of the psychological contract, findings revealed that the psychological contract was in an improved condition than expected (Stredwick and Ellis 2003). 81% of participants affirmed that their employers were fair in dealing with them, and 72% believed that their organisation will honour its undertakings and obligations (Stredwick and Ellis 2003). Guest and Conway (1999) however attempted to assess the state of psychological contracts of core employees with the peripherals and found that a better state of psychological contract was reported by the peripherals. However, Dyer (1998) argues that the reason for this is because the peripheral workers exhibit more of transactional relationship and they tend to respond more quickly to changes in the composition of the psychological contract with changes in their pay. This argument can be supported by a survey conducted in the American aerospace industry with a sample of 1 99 employees on permanent contract and 24 employees on flexible contract (Pearce and Randel 1998). Pay differentials exists within the work place with employees on flexible contract earning more than those on permanent contract. Results show little or no difference in perceived job security, performance and job satisfaction between temporary and permanent workers. In a survey carried out for the UK Department of Education and Employment on 607 workers who enjoy flexible work practices (Tremlett and Collins 1999), 68% mentioned choice of work, reduction in workload and an improved work-life balance as some advantages of flexibility. Conversely, 79% mentioned the negative aspects of flexibility as job insecurity, difficulty in working as a team, reduced benefits and treatment lower than that of permanent workers. However, (Pearce and Randell 1998) argues that the perceived effect of flexible work practice can best be determined by employees career preference; that is, whether the choice of flexible contract was intentional or not. In the UK survey reported by Tremlett and Collins (1999), 147 out of 607 did not want a permanent job. As the main reason for this, they cited not wanting the commitment that goes with permanent employment (21%), the loss of freedom to choose the work they wanted to do (19%), being too old (18%) and general lack of int erest in permanent employment (18%). WORK-LIFE BALANCE Work-life balance initiative was developed as a result of changes within the work force involving an increase in the number of women, ageing population (author); and increased understanding of the importance of employees management to organisational success (Maxwell 2005). The rapid growth of this practice was supported by government legislation which introduced the right to request flexible working also known as family friendly policy (CIPD 2010). This right was initially available for parents with children below six years of age or with disabled children below the age of eighteen years. However, there is an ongoing consideration to extend the right to parents with children under the age of sixteen years (Pitt 2009). The aim of this policy is to ensure that skills and experience needed to sustain the economy is readily available by allowing parents (especially mothers) balance work with other family responsibilities. However (Lea 2001 cited in Torrington et al 2008) argues that this policy could prevent women with family responsibilities from being hired thereby hindering womens employment prospect. Nevertheless, Manfredi and Holliday (2004) maintain that the practice impacts positively on womens career path. Another reason for the growth of family friendly policy is an increase in the number of aged people. According to Manfredi and Holliday (2004), the population is ageing thereby leading to a rise in caring responsibilities for elderly parents in addition to child care responsibilities. This however, led to carers of some specified group of adults becoming eligible for this right from April 2007. As a result of growing recognition of employees in sustaining competitive advantage, this right was further developed into work-life balance policies to include employees without family responsibilities and who desire to benefit from flexible work practices for personal reasons (Fleetwood 2007). This arguably will reduce the risk of alienation and ensure that all employees are seen as business investments and valuable assets (Maxwell 2005). According to Work foundation (2003b) work-life balance is defined as the ability of employees to achieve a satisfactory equilibrium between work and non work activities such as caring responsibilities and some other interests. Similarly, employers for work-life balance also defined WLB as about people having a measure of control over when, where and how they work leading them to enjoy an optimal quality of life. Furthermore, DTI (2005) defined work-life balance as being about adjusting working patterns regardless of age, race or gender, so everyone can find a rhythm to help them combine work with other responsibilities or aspiration. In addition, Heckerson and Laser (2006: 27) define work-life balance as a state whereby the needs and requirements of work are weighed together to create an equitable share of time that allows for work to be completed and a professionals private life to get attention. The concept of work-life balance is based on employees capability to synchronize respon sibilities at work and other interests outside work without causing conflict. According to IDS (2008a), work-life balance involves the availability of flexible work practices developed to enable employees participate in activities outside work in addition to fulfilling their job responsibilities; thus it is designed to promote flexibility (Maxwell 2005). Fleetwood (2007) argue that there is an inextricable link between the practices associated with work-life balance and that of flexible working. The author however stresses the differences between employee flexibility (employer unfriendly) and employer flexibility (employee unfriendly); and further states that employer and employees flexibility should not be used interchangeably because the former constrains work-life balance, while the latter enhances work-life balance. Work-life balance practices that make up employee flexibility are working time arrangements (such as home working, part tim

Major Problems In California History Essay

The major arguments in the two essays by Cletus E. Daniel and Devra Anne Weber revolved around the harsh working conditions and poor wages that the farm workers were subjected to in California. These injustices prompted reactions from the farm workers through strikes that were organized by their unions and mutual aid societies in a bid to negotiate for better wages and improved standards of living. The essays also highlight the fact that the farm workforce in California comprised majorly of Mexican workers and a minority of Filipino workers. Finally, the essays highlight the unsuccessful nature of the attempts by the farm workers to push for reforms in their working and living standards as well as negotiating for wage increase. However, there also exist some differences between the conclusions of the two essays. According to Devra, the Mexican union headed by the Mexican Consul, Terrazas was able to reach an agreement with the growers concerning the conditions and wages of the Mexican workers. The agreement included a wage payment of between twenty five to thirty five cents per hour and thirteen cents a crate. It also suggested guaranteed access to water to workers furnished by the growers. Devra also records that this agreement was reached without complete support of the union. According to her, the issue of communism was vital in the history of California labor. This comes to light with the agreement of the growers to give protection to their workers against the communist agitators (Weber, 295). Cletus however does not record any instance where such an agreement was reached between union members and growers. He concludes by showing the plight and helplessness suffered by the farm workers following the failure to procure better working conditions and higher wages. Cletus distanced capitalism as the cause of the problems experienced by the farm workers citing that they believed their problems to be as a result of low wages (Daniel, 288). As far as the difference in the conclusions of the two essays is concerned, the question on the accuracy of the California history of labor comes to mind. This is a problem that is brought about by the uniqueness of each author in interpretation of events and occurrences in history. This in the two essays is brought to light by the link created by Devra between the problems the growers were experiencing with the farm workers and communist agitators while Cletus explores this issue from a capitalist perspective and its link to the problems experienced by the farm workers. The Imperial Valley episode reveals a number of issues about labor and unionism in the US. To begin with, it highlights the frustrations of the farm workers in terms of poor working and living conditions as well as low wages which led to the surge in protests and strikes. It is these frustrations that necessitated the participation and formation of unions so as to fight for the rights of the workers following the realization that the only way that they could be heard was only if they acted collectively. Another issue that is revealed is the use of authorities to suppress the unionization attempts of the workers as well as to deny them their rights of assembly and strikes. The growers used city, county, state and federal authorities to quell strikes by the workers. There also was the unfair trial of the leaders of the unions for example the El Centro trial which were meant to intimidate future leaders of the unions. Finally, it appears that it is the communists that were actively involved in the fight for the rights of the farm workers as well as the unionization attempts. This is because it is the communists that came to head the unions and organize strikes against the growers who were capitalists. References Daniel Cletus E. Communist Organizers in the Imperial Valley Weber Devra A. Mexicano Farm workers on Strike

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Advantages and disadvantages of domestic and international franchising - Free Essay Example

Sample details Pages: 8 Words: 2528 Downloads: 2 Date added: 2017/06/26 Category Business Essay Type Argumentative essay Did you like this example? Introduction Buying a Franchise offers many benefits over starting a business on your own. The franchisees benefit from the training and ongoing support that they receive whilst trying to make their business successful. People starting a business on their own often have no help or guidance in the day to day running of the business! The franchisees receive guidance on location, fixtures and fittings, marketing and operation of the business model. Don’t waste time! Our writers will create an original "Advantages and disadvantages of domestic and international franchising" essay for you Create order This guidance is based on years of experience the franchiser has gained not only from running the business model but also from advising other franchisees. Buying a franchise business is at least a five year commitment and as such should not be taken lightly. It is important to make the right lifestyle choice rather than basing the decision to buy purely on profitability of the business model. A prospective franchisee should always look at the market trends to ascertain whether the need and requirements of the products of the franchise opportunity are predicted to grow or decline over the medium and long term. Getting advice from an experienced accountant can help in this respect. What makes the franchisers products better than the competition? Is the franchisor continually investing in improving the products to reflect changes in latest trends and requirements of the customers? Analysing which products have been changed and new ones introduced over the last five years will h elp in this regard. The territory is just as important as the franchise model. Not all franchises work in all territories as each area has their demographics and buying patterns. Decent knowledge of the local area is invaluable and the choice of which type of franchise business to buy should be made with regards to this information. Making the right choice of franchise that is based on individual skills as well as the individual requirements of each particular territory should serve to ensure that the business model works both in the short term and the long term International Franchising International franchising refers to a domestic businesss expansion into foreign countries and markets. International franchising is a complex process that requires thorough considerations of many factors, such as feasibility, adaptability, and benefits versus risks. Replication: During the process of international franchising, companies often strive to replicate successful domestic business models in foreign markets. Challenge: Differences in language, laws and financial systems, between franchising business and host foreign market can pose serious challenges during international expansion. Benefits: International franchising means new markets with new customers and selling potentials. International franchising also places companys name and presence in a global market. Adaptability: learning to adapt to the needs and demands of a new foreign market can attract local customers and buyers and lead to higher business success in a new country. Counsel: International franchising experts help companies understand a foreign market before expansion. Consultants advise businesses on a number of subjects, from financing to culture gaps. Advantages: There is a higher likelihood of success since a proven business formula is in place. Th e products, services, and business operations have already been established. Bankers usually look at successful franchise chains as having a lower risk of repayment default and are more likely to loan money based on that premise. The corporate image and brand awareness is already recognized. Consumers are generally more comfortable purchasing items they are familiar with and working with companies they know and trust. Franchise companies usually provide extensive training and support to their franchisees in effort to help them succeed. Many times products and services are advertised at a local and national level by the main franchise companies. This practice helps boost sales for all franchisees, but individual franchisees dont absorb the cost. Disadvantages: Franchises can be costly to implement. Also, many franchises charge ongoing royalties cutting into the profits of franchisees. Franchisors usually require franchisees to follow their operations manual to a tee in order to ensure consistency. This limits any creativity on the part of the franchisee. Franchisees must be very good at following directions in order to maintain the image and level of service already established. If the franchisee is not capable of running a quality business or does not have proper funding, this could curtail success. Sometimes franchisors may be lax on their commitment to support the franchisee. Also, they may make poor decisions that would have an ill effect on the franchisee. Therefore, it is important to research any franchise concept thoroughly before signing any agreements. Benefits on International Franchising Purchasing a franchise is one way for an entrepreneur to get started in business. Franchises offer a proven business model to follow as well as support in areas like financing and training. International franchises can provide the opportunity to take advantage of growing global markets, although the franchisee will need to ove rcome the hurdles associated with adapting to the ways of a new country. Cultural Adaptation Franchises provide the business owner with a full range of support services. This proves beneficial when it comes to adapting to the ways of a foreign country. The company can help you hire local management and workers who are familiar with the methods of doing business in the country, which can make the transition much smoother. Business Expansion If you already own an established franchise and are looking to expand, adding units in another country can provide a more profitable alternative to an already saturated market. This is particularly meaningful if you sell a product or service that is rather common in your home country. Cornering the Market You may even be fortunate enough to open a franchise in a country where there is little competition and there is a great need for your product or service. This will enable you to corner the market and possibly open several locations, establishing you as the leader in your business before the inevitable entrance of competitors occur. Change of Lifestyle Owning a franchise in another country can result in a new and exciting way of life. Franchisees from a cold climate may relish the opportunity to move to a warm, sunny locale to open a business. Some may also look forward to expanding their horizons by experiencing and assimilating into a new culture. Taking Advantage of Growth If current franchisees are experiencing slow business due to the home countrys stagnant economy, they can seek to open another unit in an area experiencing strong growth. Countries and areas exhibiting growth as of 2010 include China, Latin America and the Middle East. Advantages of international franchising Franchising is a unique form of business arrangement. The original company (called the franchisor) enters into a contract with a second business (called the franchisee) in which the original company offers the second business the right to operate under the original businesss name and the right to sell its product. The franchisor usually offers guidance and expertise to the franchisee. All of this is done for a fee, and though having a franchise isnt the same as starting a business from scratch, there are a number of advantages to the system. This is also true for international franchises. Reputation The major benefit of a franchise is that franchises reputation. If a franchise is well known for offering a certain type of product or service and a new branch of that franchise opens up locally, then people know roughly what to expect. For international franchises there are some additional issues of reputation to consider. For instance, the country of origin that the franchise comes from could be viewed as exotic, which will bring in additional business. Financing Franchises are viewed as a business plan thats already undergone a trial by fire and succeeded. Generally speaking, this makes them much easier to finance, as far as getting loans from banks is concerned. If a franchises reputation and success can be clearly shown, then the bank knows the franchisee has a much better chance of succeeding than he would if he were trying to start up a new and independent business. This is even truer for companies that are known internationally, which makes banks feel even more generous when it comes to assisting with business financing. Support Regardless of whether or not the franchisee sets up in the franchises hometown or on the other side of the world, an international franchise has the capability of extending support, advice and training to franchisees. The franchise offers training manuals, access to supply networks, advice and other forms of help to the franchisees. This is especially true where an international franchise is concerned, because every franchisee impacts the franchises reputation and reach. If all of the franchisees do well, then it will increase the franchises reputation, reach and even their brand recognition. Franchising primary benefit is risk minimization. Starting a new business is risky. Most studies show that over 90 percent fail within three years. The primary reason that the failure rate is so high is because the owners have to go through the learning curve of operating that specific type business. Franchising reduces that curve substantially. Another reason to buy a franchise is that a franchise investment can be thoroughly researched before any significant expenditure is made. Existing franchisees offer a wealth of information about the business so that new franchisees can try the business on before they buy to make sure its a good fit for them. Franchisers sell a defined, proven business format or method of operation, offering a product or service that has sold successfully. An independent business is based on both an untried idea and operation. The experience of the franchisers management team increases the potential for success. This experience is often conveyed through formal instruction and on-the-job training. Franchisees can often buy lower-cost goods and supplies through the franchiser, resulting from the group purchasing power of all the franchises. Established franchisers offer national or regional name recognition. While this may not be true with a new franchiser, the benefit of starting with one is the potential to grow as its business a nd name recognition grow. Franchising provides a uniform system of operation, so that consumers receive uniform quality, efficiently and cost-effectively. A uniform system brings with it the advantages of mass purchasing power, brand identification, and customer loyalty, capitalizing on the proven format. A franchiser also provides management assistance, including accounting procedures, personnel and facility management. An individual with experience in these areas may not be familiar with how to apply them in a new business. The franchiser helps a franchisee overcome this lack of experience. Franchisors help franchisees develop a business plan. Many elements of the plan are standard operating procedures established by the franchisor. The most difficult part of a new business is its start-up, since even experienced managers lack the knowledge to set up a new business. One of the biggest benefits to franchising is marketing. The franchiser can prepare and pay for the deve lopment of professional advertising campaigns. Regional or national marketing done by the franchiser benefits all franchisees. In addition, the franchiser can provide advice about how to develop effective marketing programs for a local area through a cooperative marketing fund, to which the franchisees contribute a percentage of their gross income. Its possible to receive assistance in financing a new franchise through the franchiser, who often makes arrangements with a lending institution to lend money to a franchisee. The franchisee must still accept responsibility for the loan, but the franchisers involvement usually increases the likelihood that a loan will be approved. A franchiser also provides training for the franchisee. This is especially important if the concept is complex. The best training combines classroom or one-on-one training at the franchisers facility with field training at the franchisees place of business. Finally, franchising has found a solid economic niche that caters to specialized needs. Many American consumers no longer want a muffler installed by a service station, a hamburger from a diner, a pizza from someone who wont deliver it within 30 minutes or their hair cut by a local barber. Specialists, it seems, do it better, and the franchise industry is only too willing help. Once you become a franchisee and part of a franchise organization, What are your roles and responsibilities? Financial The first function you have in your new endeavour is as an investor into your business. You will need to invest financially with an initial franchising fee, but also be prepared to pay any additional costs that might be necessary to get the business up and running such as equipment costs. Also, there will be ongoing royalty fees that you will need to be aware of. Time Secondly, you will need to be sure that you can invest an adequate amount of time in the business. Although the system is basically set up in franchising, you will still need to initially spend extra time learning how the system works. The franchisor usually offers training and continuous support, hence the ongoing royalty payments. Like anything else, once you know the ins and outs of the system, the time investment decreases somewhat. Leadership and Partnership One of the most important skills you need to possess as a franchisee is the ability to be pro-active and take initiative. You should be able to easily assume a leadership role. You need to be certain that you understand how the entire system works and not be afraid to ask the franchisor questions. It is especially important to communicate with the franchisor anything that you notice that doesnt seem right to you. After all, you are basically assuming a partnership role with the franchisor. Therefore, you should be able to work together, share ideas, and resolve issues together. You may notice something that the franchisor was not aware of since you are much closer to the business. The franchisor would probably appreciate your bringing concerns or discrepancies to the table, especially if you offer possible solutions. Communication With all of the responsibilities that the franchisee holds, communication and organizational skills are key skills to possess as a franchisee. As mentioned, it is important to keep in close communication with your franchisor. In addition, you will need to be able to communicate effectively with your customers, employees, vendors, and other business contacts. Furthermore, it can be quite beneficial to team up with other franchisees on a regular basis. It can help you run your business more smoothly if you share ideas and solutions to problems experienced with others in the same capacity. Organization In your role as franchisee, you should be prepared to wear many hats. In operating the business, you will most likely have to manage all the daily operations involved in operating a business, including ordering supplies, meeting with customers and vendors, preparing payroll, resolving discrepancies, etc. These are just a few of your sub-roles depending on the type of business you are running. It is essential to be able to organize all of your responsibilities so that everything gets done accurately and in a timely manner. In conclusion, as long as you understand your role as a franchisee and make every effort to carry it out thoroughly, you should be able to manage a successful franchise.