Is HRM a worthwhile investment for an SME

Introduction Organizations’ management teams are increasingly appreciating the importance of human capital in an effort to improve their organizations’ competitive advantage (Kok 2003). This has led to an increment in the number of studies being conducted with regard to best practices of managing human resources.Advertising We will write a custom essay sample on Is HRM a worthwhile investment for an SME specifically for you for only $16.05 $11/page Learn More There has also been increased recognition of the purpose of small and medium enterprises (SMEs) in the modern economies. This realization illustrates that, there is a point of convergence between human resource management and small medium enterprises. Human resource management [HRM] deals with management of a firm’s workforce (Kok 2003). It is composed of a set of different but interrelated processes, activities, and functions that are aimed at attracting, developing, and retain ing an organization’s workforce. Some of the activities undertaken in HRM include employee recruitment, selection and formulation of effective appraisal and compensation scheme. Through HRM, organizations can develop and retain talented and energetic workforces that can contribute towards attainment of the formulated organizational strategies, missions, goals and objectives (Transky Heneman 2006). Additionally, integration of HRM practices and policies can significantly contribute towards a firm improving its performance. However, integration of HRM in SMEs is relatively low (Cooper Burke 2011). Previous studies reveal that, most SMEs do not make optimal use of HRM practices in their operations (Bacon, Hoque 2005). Some of these studies assert that, most SMEs tend to operate in a more flexible and informal manner compared to large enterprises. For example, Kok (2003) is of the opinion that, a firm’s size is directly related with its incidence towards HRM practices s uch as training and planning. However, small firms are less likely to invest in training for their employees, performance appraisal, and recruitment practices probably due to limited capital and revenues. HRM in SMEs is mostly characterized by administrative tasks whereas the more strategic matters are not perceived with the weight that they deserve. A study conducted by Hendry and others in 1991 reveals that, SMEs perceive investing in HRM as an additional undertaking beyond the level that is necessary to sustain their operations; a luxury that can only be afforded if the firm makes substantial profits (Kok 2003). However, considering the environmental uncertainty facing firms today, it is paramount for SMEs to evaluate their operational practices in order to remain competitive and HRM optimization is slowly becoming indispensable.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More In additio n to being characterized as being informal, management teams of SMEs are also considered to be less specialized compared to large enterprises. Employees of SMEs tend to perform different tasks compared to large enterprises, which means that the level of specialization is relatively low. This aspect is well illustrated by a qualitative study conducted by Berkley and Heneman in 1999. The study took into account a random test on 117 SMEs whose human resource base was less than 100 employees. Findings of the study showed that, 15 of the SMEs considered had a human resource management department (Kok 2003). There is growing evidence that HRM practices tend to be sophisticated especially for SMEs. On the basis of the above analysis, it is evident that there is a significant level of deficiency with regard to HRM in SMEs. This paper is aimed at critically evaluating whether it is worthwhile for SMEs invest in HRM. Analysis of the trend of HRM Previous studies conducted have shown that, dev elopment of an effective workforce and organizational culture is one of the ways through which organizations can develop their competitive advantage. Firm and employee culture are considered to be some of the most fundamental aspects in the success of SMES. An example of such culture includes operating in a social responsible manner (Mankelow 2008). As a result, it is quite unprofessional for SMEs to continue underutilizing their human capital (Cooper Burke 2011). HRM has over the past decade become one of the most crucial aspects that both small and large organizations have to consider. There are a number of reasons that have contributed to this shift. Some of these reasons are explained in the paper. Currently, the business environment is increasingly becoming knowledge based. This means that firms are considering knowledge as an important source of competitive advantage. This has arisen from the high rate of globalization that is being experienced today (Knowles, Diamantis El-M ourhabi 2004). As a result of globalization, most economies are eliminating trade barriers thus presenting a challenge to firms through increased competition (Tsui Lai 2009). Therefore, it is paramount for organizational management teams to consider ways of enhancing their organization’s performances (Cooper Burke 2011).Advertising We will write a custom essay sample on Is HRM a worthwhile investment for an SME specifically for you for only $16.05 $11/page Learn More With the development of the education sector in different economies, the workforce is becoming more and more educated. There has also been considerable growth with regard to employees’ expectations on working environment and quality work. Additionally, staff shortages have made firms experience intense competition for human capital. As a result, SMEs are reconsidering on the best practices that they can retain their talented workforce (Cooper Burke 2011). The importance of HRM in both large and SMEs is also being enhanced by the demographic changes occurring within the labour market. One of the demographic changes being witnessed arises from the fact that the workforce is becoming aged. As a result, it has become essential for SMEs to consider incorporating performance incentives and training and development initiatives in order to maximize on their employees’ working capacity. Organizations are also experiencing a significant transformation with regard to clients and customer expectations. As a result of customers and clients becoming more knowledgeable, they are demanding effective, efficient and high quality services and products (Cooper Burke 2011). Analysis of the changes occurring within the business environment reveals that, it is critical for businesses to consider ways of improving their competitive advantage through integration of HRM practices in their management practices. Theoretical frameworks formulated to explain the importance of HRM in SMEs A number of theories have been advanced to explicate the relevance of SMEs investing in HRM. One of the theoretical explanations is universalistic in nature. The theory is based on HRM best practices (Cooper Burke 2011). Through integration of HRM best practices, SMEs can attain considerable improvement in their performance. One of the ways through which this can be attained is by incorporating the concept of employee training and development (Jolly 2003). Findings of a study conducted in 2002 on the perspective of employee development in SMEs revealed that, training and development is an indispensable component in a firm’s effort to attain the desired growth. This arises from the fact that training and development contributes towards increased productivity within an organization’s workforce. Increase in productivity arises from the fact that employees perceive a higher opportunity for growth within such an organization. Training and development also e nhances the employees’ level of motivation. Despite the benefits associated with training and development, some parties are of the view that training and development can result into increased employee turnover as a result of poaching (Jolly 2003). However, for training to be successful in SMEs, management teams should ensure that it is well imbedded within the firm’s workplace, informal and flexible. The theory also asserts that incorporation of HRM by SMEs would result in adoption of performance based pay. According to Longenecker (2006), it is paramount for SMEs to acknowledge the importance of formulating a compensation plan that will contribute towards attraction and retention of well-qualified personnel.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More One of the ways through which SMEs can achieve this goal is through incorporation of HRM best practices. Some of the elements that they should consider when formulating the compensation plan include competitive salary and wage levels, and financial incentives that will improve employee productivity. One of the financial incentives that are most effective in SMEs includes sharing profits. This arises from the fact that it is possible for SMEs to assess individual performance (Longenecker 2006). The second theoretical framework is behavioural in nature. The theory asserts that human resource management practices and policies have a significant influence on employees’ behaviour, for example, through organizational commitment, employee creativity and work engagement. These aspects consequently affect productivity, profitability and performance (Cooper Burke 2011). The third theoretical framework is economic in nature. This arises from the fact that significant cost is incurred i n the process of adopting formal HR practices. According to Phillips (2005), acquisition and maintenance of a strong workforce is quite expensive. There are numerous cost categories that are involved in the development of a strong workforce. Some of these are related to recruitment, selection, indoctrination, initial training, formulation of competitive compensation and reward systems, socialization and exit costs. This can be a challenge especially to SMEs compared to large enterprises. How HRM is worthwhile investing by SMEs There are a number of reasons that illustrate why it is worthwhile for SMEs to invest in HRM. For example, through incorporation of effective training programs, SMES can be able to derive more value from their workforces. This arises from the fact that the business will be able to effectively address the most pertinent issues facing its operation. Investing in HRM can also improve the employees’ attitude towards work. One of the ways through which this change of attitude is attained is by integrating effective leadership measures (Cooper Burke 2011). Findings of a study conducted in the US on leadership training revealed that revenues of firms that incorporate leadership training grow with a margin of more than 25% compared to their training cost (Cooper Burke 2011). This well illustrates the fact that training can result in improvement of SMEs financial performance. Additionally, investing in HRM can significantly improve the performance of SMEs through improved employee engagement. There are a number of ways through which organizations can achieve this; some of these include ensuring that the employees have a comprehensive understanding of their performance expectations. Additionally, SMEs should ensure that employees have sufficient resources to support successful completion of tasks. By investing in HRM, SMEs can be able to contribute towards staff development, improve on employee input, in addition to compelling the employe es to be focused towards attainment of organizational goals and mission. Integration of HRM in SMEs can also contribute towards development of a strong workplace culture. Work within the modern economy is becoming more and more demanding (Ulrich 1997). For example, organizations are demanding more from their employees with few resources. There has also been a decline in employment security, which is making the employees to reconsider their commitment and contribution to their employers (Ulrich 1997). However, incorporation of HRM by SMEs can significantly improve their performance in a number of ways. For example, HRM contributes towards development of an enabling environment for employees to work in. One of the reasons why organizations are experiencing a challenge with regard to employee turnover relates to the current global economic changes. Employees are constantly faced with the challenge of ensuring that they provide for their families. To achieve this, employees are consider ing improving their competitive edge within the labour market. To achieve this, employees are considering going back to school. The employees work demands coupled with their desire to enhance their competitiveness in the labour market are leading to increased stress levels amongst the employees. This arises from the fact that the employees are not able to balance between work and life. Occurrence of such a phenomenon would have adverse effects on the employees productivity and hence the organization’s performance and competitive advantage (Williamson, Lewis Massey 2011). Some of the HR practices that organization management teams should consider in order to deal with this challenge include incorporation of work-life balance and stress management policies (Williamson, Lewis Massey 2011). Effective formulation and implementation of work-life balance can be beneficial to SMEs through achievement of a healthier and happier life for the employees. One of the ways through which m anagement teams of SMEs can achieve this formulation is by integrating effective HR policies; for example, flexible career options and working hours (Cooper Burke 2011). Integration of such strategies can significantly improve the employees level of satisfaction and hence their productivity. Considering the competitive nature of the labour market, it is paramount for SMEs to ensure that they acquire a strong workforce (Michalski 2011). This can only be attained by ensuring an effective employee recruitment process. However, most SMEs do not consider investing their time and money towards developing their human capital. As a result, they do not have a formal employee recruitment process. Recruitment of a strong workforce in SMEs is also hindered by the fact that they are not well connected in the labour market (Cooper Burke 2011). Additionally, most SMEs tend to suffer image problem amongst job seekers. To improve on their ability of recruiting a strong work workforce, it is paramo unt for SMEs to be concerned on becoming more legitimate. To deal with this challenge, it is crucial for SMEs to consider investing in a comprehensive recruitment process. Through recruitment, an organization can attract a wide range of workforce to select from. SMEs should consider several issues in order to attract high-quality job applicants. For example, they should invest in initiatives aimed at making their organizations recognizable amongst job applicants (Hartman Spiro 2005). SMEs should also invest in developing human resource policies such as those used by large enterprises. This can be attained by outsourcing HR consultants to aid in the formulation and implementation of the policies. Such investment in HRM would have significant influence in SMEs’ operational efficiency. The recruitment process is followed by selection of the most qualified staff which is a relatively complex process (Harney Dundon 2006). Due to time and financial constraints, most SMEs conduct reactive selection and recruitment process. Additionally, a substantial proportion of SMEs do not have sufficient understanding on the requirements of a position intended to be filled. However, to ensure that they develop a strong workforce, it is critical for SMEs to invest in HRM practices such as employee selection and recruitment. Upon acquiring a strong workforce, it is paramount for management teams of SMEs to consider on the most effective ways of motivating and retaining employees. This arises from the fact that underperforming employees can be a threat to the success of SMEs. HRM provides a solution on the best practices of employee motivation. These strategies range from monetary to non-monetary benefits. Some of the non-monetary benefits include recognition of employee performance and promotions. To deal with underperforming employees, SME managers should ensure that they maintain constant communication with such employees in order to indicate what the firm expects of the m. Currently, SMEs can achieve this more effectively and efficiently considering the growth in information communication technology; for example, by using emerging social communication networks such as Twitter and video conferencing. This means that SMEs should invest in the current technology. Maintaining communication within an organization can significantly contribute towards development of a strong bond between employees and the management team (Cooper Burke 2011). SMEs, which have incorporated HRM in their operation, are able to deal with changes occurring in the business environment. This capacity to handle change easily is made possible by the fact that HRM enables organizations to undertake comprehensive human resource planning. As a result, they are able to evaluate and anticipate their current and future human resource needs. Therefore, investing in HRM can enable SMEs to be proactive in dealing with environment changes rather than being reactive. Conclusion The above ana lysis makes it evident that, SMEs do not pay much emphasis on HRM compared to large organizations. For example, studies conducted reveal that only a few SMEs have a functional human resource department. This means that, human resource activities are conducted more informally. There are a number of reasons that explain this trend. Some of the reasons range from lack of knowledge on HRM by management teams of SMEs to the high cost involved in implementing HRM. However, changes occurring within the business environment such as globalization have increasingly made SMEs to reconsider the role of HRM in an effort to survive in the challenging business environment. Despite this, the above analysis underscores the importance of HRM in SMEs. For example, despite investing in HRM policies and practices being costly to SMEs with regard to financial and time requirements compared to large organizations, there are numerous benefits that SMEs can achieve. Incorporation of HRM practices can contri bute towards improvement of SMEs’ competitive advantage in a number of ways. For example, by investing in training and development, SMEs can improve the employees working efficiency and effectiveness. Additionally, organizations that invest in training and development are more efficient with improving employee satisfaction. This arises from the fact that the employees develop a perception that the organization has an interest in their heart. This will consequently culminate in improvement of their productivity and hence their performance. Considering the dynamic nature of the business environment, it has become necessary for SMEs to shift their operations towards becoming knowledge-based to be competitive. This can only be achieved if SMEs undertake sufficient training and development. By investing in employee recruitment and selection, there is a high probability of SMEs developing a strong human resource base. The resultant effect is that the firm’s competitiveness w ill be enhanced. Additionally, if effectively formulated and implemented, investing in HRM practices and policies can result in the creation of an enabling working environment. This argument holds because HRM advocates for firms to incorporate strategies, which will contribute towards a high level of employee satisfaction. Some of these strategies relate to ensuring that the employees are well remunerated and their performance recognized by conducting sufficient performance appraisals. Investing in HRM increases the probability of SMEs to achieve their goals and objectives. One of the ways through which this scenario is made possible arises from the fact that HRM advocates for effective management of employees; for example, by integrating the concept of teamwork. Effective organizational leadership also plays a critical role with regard to enhancing cohesiveness in an organization. Considering the contribution of HRM towards organizational success, it is vital for SMEs to incorporat e the best HRM policies and practices, because as explicated in this paper, HRM is a worthwhile investment for SMEs. Reference List Bacon, N Hoque, K 2005, ‘HRM in the SME sector: valuable employees and coercive networks’, International Journal of Human Resource Management, vol. 16 no. 11, pp. 1976-1999. Cooper, C Burke, R 2011, Human resource management in small business: Achieving peak performance, Edward Elgar, Cheltenham. Harney, B Dundon, T 2006, ‘Capturing complexity: Developing an integrated approach to analyzing HRM in SMEs’, Human Resource Management Journal, vol. 16 no.1, pp. 48 – 73. Hartman, K Spiro, R 2005, Recapturing store image in customer-based store equity: A construct conceptualization, Indiana University, Indiana. Jolly, A 2003, Skills and Training Directory: A Complete Sourcebook of Best Practice and Training Providers, Kogan Page, London. Knowles, T, Diamantis, D El-Mourhabi, J 2004, The globalization of tourism and hospita lity, Thomson, London. Kok, J 2003, Human resource management within small and medium-sized enterprises, Rozenberg Publishers, Amsterdam. Longenecker, J 2006, Small business management: An entrepreneurial emphasis, Thomson, Ohio. Mankelow, G 2008, ‘Social responsibility paradox of small business human resource management,’ International Journal of Human Resource Management, vol. 19 no. 12, pp. 2171-2181. Michalski, A 2011, Human resource controlling in small and medium enterprises: Components and possible approaches, Berlin, GRIN Verlag. Phillips, J 2005, Investing in your company’s human capital: Strategies to avoid spending too little or too much, AMACOM, New York. Transky, J Heneman, R 2006, Human resource strategies for the high growth entrepreneurial firm, Information Age Publishing, Greenwich. Tsui, A Lai, K 2009, Professional practices of human resource management in Hong Kong: Linking HRM to organizational success, Hong Kong University, Hong Kong. Ulri ch, D 1997, Human resource champions: The next agenda for adding value and delivering results, Harvard Business School, Boston. Williamson, A, Lewis, K Massey, C 2011, Work-life balance in small business: The impact of firm and family milestone, Wellington, New Zealand Centre for SME Research. This essay on Is HRM a worthwhile investment for an SME was written and submitted by user Vivienne Hull to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

An investigation into the effect of chunking on recall Essays

An investigation into the effect of chunking on recall Essays An investigation into the effect of chunking on recall Essay An investigation into the effect of chunking on recall Essay I chose the experimental method because this brings advantages like I can control most of my variables but not all. Some controlled variables which I have are that each participant gets the same instructions, each person gets the same amount of time this is to keep the experiment as fair as possible.Some variables that I will not be able to control are things like the time of day I ask each person because I got to see when I have some spare time to do so, I will proberly not be able to make sure each person is under the same surroundings again due to time and this could affect my results because people mite not be at there best at a certain time of day. Participants My experiment is aimed at 16yr olds students of a mixed gender.They were selected through the opportunity sampling method because they were situated in the same room as my self and are all from the same college QE. Materials I used equipment such as a stopwatch to time each individual to make sure each one had the exact same time, I provided a pen and a sheet of paper for everyone who took part in my experiment. I chose my list of abbreviations by thinking of a topic like TV and than I thought about all the channels and there abbreviations but all had to be 3 letters each.Procedure The first thing I did after I had chosen what experiment I was going to do was think of a list abbreviations that had to be 3 letters each and altogether had to be 24 letters. I than made simple instructions for the participants to follow and printed it out. Later on I went into the canteen around 11am and asked people if they would take part in my experiment, I told them that they did not have to take part against there will and could withdraw at anytime during the experiment but also reassured them that all there information would be kept confidential.I gave each participant 1min to have a look at the letters, letter string or chunked list and than recorded the results on a rough sheet of paper. After I had gathered up all the info I started writing up my experiment. Discussion My results show that my prediction was correct and that more people remembered the letters from the chunked list than the letter string also that Millers theory was correct that if we chunk information and give them a meaning we are more likely to remember more than 7 things in our STM so my results agree with Millers theory.If I could make any modifications it would be that I would ask participants at the same time of day rather than at different times because this could affect the results because participants mite not be at there best at a certain time of day or mite jus be having a bad day altogether. Another thing I would change is that I would use only students who do not do psychology because people who do psychology mite now whats going on and may have already done the experiment before so this could affect the results if they know the theory behind the experiment.Criticism with my experiment is the location because the canteen was to noisy, I would like it be in a quite room were I could ask all the participants at the same time of day on the same day so it would be as fair as possible. If I was able to make these changes this may have affected my results because people may have remembered more letters in each situation and this may have even affected my hypothesis. Again the confounding variables were the noise, location, people may not have been at there best at that time of day and other general distractions occur in the canteen .Ethical issued were that I never forced anyone into participating and always gave them the option of withdrawing anytime during the experiment but also told them that all information would be kept confidential. Further work from this experiment is that I could use it to revise for final exams as it has lots of vital information. Results My results show that my prediction was correct and that chunking information increases capacity in your STM and also that Millers theory was correct

Ethics and Morals Essay Example | Topics and Well Written Essays - 1500 words

Ethics and Morals - Essay Example It is regarded by society, religion culture and family setting. On the other hand, ethics is about the decisions which we make. When an individual takes an action with conforms to the societal beliefs and standards, that action are regarded to be ethical. Morals and ethics are guiding principles which assist in giving directions to a person’s conduct. Many at times, people tend to make conclusions that will be of favour to them (Nietzsche, 4). It is essential for a person to act and make ethical decision at all times, even when experiencing a difficult moment. It is also important to choose for a resolution which will be fair to everyone since we will be liable to our actions and deeds whether good or bad. The ultimate goal of these societal values is to make the world a better place. The evaluation of the good and the bad of a deed are based on a couple of issues which pertains to the values of morality in the society (Nietzsche & Arendt). The presumption of an issue by the e ntire community is a worrying trend. A person can be timid about reprimanding a certain perpetual societal evils, if the society approves it. It is argued individual absent at the instance of an occurrence should not be allowed to deliberate on the issue. No legal proceedings in court would be a success if we allow ourselves to be deceived by this notion. Substantive measures must be enforced to ensure obedience of the law to the letter. A person can use his capacity to ascertain the truth of the matter without necessarily being a witness to an action when it occurred. A verdict is not passed based on hints at that point in time. A good judge should gather effective and concrete evidence that will help him doubt an eyewitness submission or to disregard inappropriate judgements made by those who witnessed a happening of an event. Passing out judgement without ones presence might be considered to be an element of arrogance. In a moral and ethical perspective, it is basically pointing out what is right or wrong and is totally acceptable since it conforms to codes of ethics. Our society is engulfed in fear of judgement that has been confused by a biblical point of view. â€Å"Never judge and you will not be judged†. This approach is intertwined with throwing the fast stone. Reluctance to judge the right and wrong prowls that there is no voluntariness to an agent. Anyone is accountable and answerable to their deeds. Rising up of the issues of morality even as a by the way, is accompanied by confrontations to the persons who instigated them. Many people tend to keep quiet due to fear as a result of inadequate self-consciousness, confidence and being ego centric. The modesty attitude of saying a person is not worth to judge is also an impediment to the conformity to morals and ethics. This reflects the resemblance in people’s attitude and mentality. Those who make an effort to uphold to decency are considered to be hypocrites or consecrated therefore, t hey are marginalized. Thus, the immense outrage and the uproar in the attempt to correct particular blame on an individual, rather than rebuking all actions or historical tendencies. One can get an insight by recalling on what Hitler did to Plato, Nihilism, Giacchino da Fiore, the French revolution. Hitler was a considered to be murderer, politically powerful and strong. His historical traits and background cannot explain exactly who he really was and his general exercise of authority towards people’

'Intellectual Property rights have, throughout history, increased in Essay

'Intellectual Property rights have, throughout history, increased in scope and shifted towards greater protection for their owners'. Critically assess the main - Essay Example l property is very wide and includes literary and artistic works, films, computer programs, inventions, designs and marks used by traders for their goods or services.’1 The law makes sure that the owners of Intellectual Property creations are protected. However, the law in regards to IP rights is never stable since IP rights are many different types of rights developed at its own pace at a national and international level. IP rights are protected at a national level, but at the end of the 19th century International Intellectual Property started to develop at a more international level. Copyright means the right to make copies2. A work will not be protected unless it is original3, fixated.4 Copyright has developed extensively from the time before the printing machine to the modern luxuries of the modern world. The first copyright case dated back to 567 AD. The case of Finnian v Columba where Columba made a copy of his teachers Psalter. Following this the Statutes of the University of Paris in 1223 legalized the duplication of texts for the use within the university.5 Following this the first printer was developed, creating the first ‘bestseller’.6 The printing press brought on a period of piracy and chaos. The factor that brought everything to a comprehensive balance was when the statute of Anne was passed in 1709. If the author was alive when their right expired after 14 years, another 14 years was granted. A dispute arose on whether or not the author had a perpetual common law right to print or publish his work by assigning a perpetual publisher to do so. This dispute was settled in Donaldson v Beckett.7 The author died and his copyright was sold by his executors to Beckett. Who in return sued Donaldson for infringement of copyright. It was stated in this case that ‘the author did have a common law rights that were potentially perpetual (that is, the right of first printing and publishing), but once the work was published, this common law right

Response to a Rodriguez Essay Example | Topics and Well Written Essays - 500 words

Response to a Rodriguez - Essay Example The language barrier has been shown as the major drawback into assimilation processes that an immigrant comes across when he/she comes to a foreign land. I agree with Rodriguez about the changes that he underwent were necessary for him to finally accept his new country as his own. The changes were also needed for the natives to accept him within their fold. According to Rodriguez, the initial years were tough for him as a child because he and his family had not made concerted efforts to overcome the barriers of the language and were satisfied with the little knowledge of their host country’s language. Inside their home, they all felt comfortable because they could express their feelings and emotions in their won language. But outside the home, they were diffident and awkward because of the lack of adequate knowledge of the English language which made communication with outsider difficult. Once he became confident that he could express himself in the native language of English, it became easier for him to interact with others, feel more comfortable and develop a sense of belonging. These are the common challenges immigrants fac e and overcoming language barriers becomes the key to the process of assimilation. Rodriguez had undergone the painful experiences of two societies, public and private. While the public society had made him self conscious, the private society at home had given him love and happiness. Looking at the wider implications of the two and the role of languages, he found it is imperative one learn the foreign language or English, so the immigrants can effectively overcome the feeling of alienation. The language is the main mode of communication that facilitates better understanding as well as helps to build relationship. It also ultimately lets one have an identity in a foreign land and promotes acceptance of immigrants within mainstream society. The middle class ethnics and early settlers

Property Prices in Sydney

Property Prices in Sydney Sydney Property Prices Executive Summary In early March 2014, the governor of Reserve Bank, Glenn Stevens, warned house owners that Sydney property prices including houses will keep rising. For this reason, he cautioned home buyers never to borrow so much debt because, like the house prices are anticipated to continue rising, they can equally fall. Foreign investors have been moving to Australia at a very high rate especially those from China. The business people increasingly buy houses in Australia particularly those at the hot Sydney market. This has caused Sydney house prices to shoot up at a very rapid rate. This rapid rise in Sydney house prices has also been caused by few homes in Australia that only leave the cashed-up foreign investors with the opportunity to purchase those that are available. This situation creates a big problem to first home buyers who do not have as much money to purchase such expensive houses. Table of Contents Executive Summary Table of Contents Introduction Sydney house prices The key stakeholders that are impacted by the rise in Sydney house prices Economic theories Other relevant issues in the article Conclusion References Appendices Introduction Since 1983, house prices in Sydney have been increasing and this trend has been constant for over thirty years. The rapid rise in Sydney house prices is contributed by an increase in house demand by foreign buyers, as well as the low supply of houses in Australia. The purpose of this report is to present the causes and impacts of the rapid rise in Sydney house prices, and to provide possible solutions to the problem. The report begins by analyzing the present situation in Sydney as far as house prices are concerned, including major contributors and possible impacts. This is followed by description of the stakeholders that may be impacted by the rise in Sydney house prices. The report also explains the present problem in Sydney in terms of economic theory and concepts of demand and supply. The last section of the report focuses on possible solutions to the rapid rise in Sydney house prices. Sydney house prices Sydney house prices have rapidly increased over the recent past. Home buyers increasingly move to Australia to look for new homes for residential purposes and for investment. The rapid increase in prices is attributed to an increase in demand for Australian real estate from foreign buyers that have resulted into several bidders quoting very huge prices (Macken 2014). Home owners have raised house prices in Sydney because foreign investors, especially from China, increasingly buy local homes. These foreign investors are attracted to Australia by the Australian significant investor visa. The significant investor visa attracts prominent investors and business people to Australia and increase innovation and economic growth (Nicholls and Macken, 2014). Additionally, the Canadian government has cut its Federal Immigrant Investor Program and the recent change in the Canadian Visa scheme is expected to attract even more investors and business people to Sydney (Macken 2014). Australian houses are also expensive because of low supply of the stuff (Nicholls and Macken, 2014). Many Australian families increasingly buy new residential homes resulting into the rapid increase in house prices. This form of demand is driven by education as well as lifestyle. Highly educated people believe that they should stay in executive homes. They are therefore attracted to purchase such homes that are available in Sydney at high prices. Again, many Australian men point out that they want quality lives for their wives and families and since price is equated to quality, they end up buying Sydney houses at high prices which keeps these prices high. Foreign investors from China are likely to keep Sydney house prices high as they move to establish industries in Australia concerning the fact that China has strict policy against pollution (Macken 2014). It is anticipated that a consistent rise in Sydney house prices will soon render new home buyers homeless because they will not be able to cope w ith the high prices (Johnstone 2014). However, the Reserve Bank brings back hope to such people by stating that Sydney house prices are likely to fall in the near future due to low interest rates that have encouraged Australians to build new homes (Hutchens 2014). The key stakeholders that are impacted by the rise in Sydney house prices The rapid rise in Sydney house prices may impact a number of stakeholders including home owners, upgraders, foreign investors, local investors, first home buyers, second home buyers, the society and the Australian government. Home owners will have to increase the quality of their houses and build them in different architectural designs to attract home buyers. In addition, the rapid increase in Sydney house prices will compel home owners to consider building varieties of executive houses suited for investment and residential purposes (Macken 2014). As more and more foreign investors come to Australia, the upgraders will want to sell off their present houses in order to build new ones that will meet the current demands of families and businesses (Nicholls and Macken, 2014). Foreign investors are likely to be impacted by the rapid rise in Sydney house prices as they will be compelled to dig deep into their pockets and give out the required amounts before they can be allowed house owners hip. Like the foreign investors, local investors will also have to pay for the houses as per the prevailing market price. Unfortunately, some local investors might not afford to pay these prices, leading to market domination by the foreign investors (Macken 2014). First home buyers are those individuals who are purchasing homes for the first time. This group of customers lacks home purchasing experience and they may not have as much money to pay for the expensive houses. Eventually, they might soon become homeless if the current situation persists. Second home buyers on the other hand have bought homes before and can easily adapt to the rapid rise in Sydney house prices. They would thus have an advantage of house ownership at the prevailing prices as opposed to first home buyers (Johnstone 2014). With many foreign investors acquiring new residences in Australia as a result of rapid rise in house prices, the Australian population will obviously increase. Increase in population is ass ociated with environmental pollution and scarcity of resources. The Australian government must therefore make a change in its policy to ensure that these foreign investors are peacefully accommodated in the country. Even though all these groups will be impacted by the rapid rise in Sydney house prices, the first home buyers will be impacted the most because they will not be able to purchase new houses if the house prices increase further (Johnstone 2014). Economic theories The two main factors causing the rapid rise in Sydney house prices are; increase in demand of houses from foreign buyers and low supply of homes. According to the law of demand, the quantity of commodity demanded decreases with increase in price and vice versa, all other factors remaining constant. This can be plotted graphically in form of a demand curve showing the relationship between price and quantity demanded of a product (Sakovics and Steiner, 2012). Supply curve is a graphical representation of the quantity of goods that suppliers are willing to bring to the market at the prevailing market prices, with all other factors remaining constant. The point of intersection of demand and supply curves is the equilibrium price and quantity (Liu and Agbola, 2014). All these three relationships are shown in figure 1. Other factors such as changes in consumer tastes and preferences can cause a shift in demand curve thereby changing the price of a particular commodity (Liu and Agbola, 2014 ). From the media report, an increase in demand for executive houses is Sydney is derived from the increase in number of foreign investors, education and lifestyle (Macken 2014). These factors cause a positive shift in the demand curve where the demand curve shifts to the right (Liu and Agbola, 2014). This shift generally causes an increase in house prices as presented in figure 2 in the appendices section. At the same time, there is low supply of houses in Sydney causing the rise in house prices (Nicholls and Macken, 2014). This causes the supply curve to shift to the left as shown in figure 3. These shifts in demand and supply curves contribute to the high house prices in Sydney. Other relevant issues in the article The fact that first home buyers are the stakeholders that are likely to be impacted the most with the rapid rise in prices of Sydney houses, I would ensure that they are not disadvantaged through abolishment of stamp duty for first home buyers and reintroduction of first home buyers incentives for houses. This will give first home buyers the opportunity to meet the expenses of purchasing new homes. In addition, I would encourage first home buyers to form partnerships and share mortgage costs. This is cheaper because those involved in the partnerships can formulate policies that govern their practice. They can also extend these houses and lease the extra portions to others who will in the process assist them in meeting costs (Johnstone 2014). Other alternate actions that can be taken to solve the economic problem in Sydney include building of more homes to increase their availability to foreign investors and Australian residents. Building more homes will mean an increase in supply of homes (Hutchens 2014). This will cause the supply curve to shift to the right thereby lowering the house prices as shown in figure 4. Conclusion In conclusion, both local and foreign home buyers in Sydney are faced with the challenge of rapidly rising house prices. The current trend observed in Sydney house prices occurs as result of scarcity of houses and the increasing demand from foreign buyers. If these prices continue to rise over the coming years, first home buyers will be rendered homeless as they will not be able to afford houses in Sydney. The increase in demand as well as low supply of houses cause a shift in the demand and supply curves respectively, which causes prices to rise. First home owners can acquire houses at the prevailing prices through formation of partnerships. Additionally, they can be assisted to fit in the current market through reintroduction of first home buyers’ incentives for houses. Consequently, building more homes in Sydney will increase the supply of houses and house prices will come down. References Hutchens, G 2014, ‘House Prices Can Fall Too, Warns Reserve Bank Governor Glenn Stevens,’ The Sydney Morning Gerald, March 8, also available from http://www.smh.com.au/national/house-prices-can-fall-too-warns-reserve-bank-governor-glenn-stevens-20140307-34cr5.html Johnstone, T 2014, ‘No Joy For First Timers at Auction: Upgraders Win in Lilyfield as Sydney Records Another Strong Clearance Rate of 82.5 %’, The Sydney Morning Gerald, March 8, also available from http://smh.domain.com.au/real-estate-news/no-joy-for-first-timers-at-auction-20140308-34dud.html Liu, WS Agbola, FW 2014, ‘Regional Analysis of the Impact of Inward Foreign Investment on Economic Growth in the Chinese Electronic Industry,’ Applied Economics, Vol. 1, no. 26, pp. 2576-2592. Macken, L 2014, ‘Property: Sydney Expected to Gain Foreign Buyers as Canada Closes Visa Scheme,’ The Sydney Morning Gerald, March 8, also available from http://smh.domain.com.au/real-estate-news/property-sydney-expected-to-gain-foreign-buyers-as-canada-closes-visa-scheme-20140307-34cr6.html Nicholls, S Macken, L 2014, ‘Upgraders Keep Sydney Property Market Bouyant,’ The Sydney Morning Gerald, March 8, also available from http://smh.domain.com.au/real-estate-news/upgraders-keep-sydney-property-market-buoyant-20140314-34rqe.html Sakovics, J Steiner J 2012, ‘Who Matters in Coordinating Problems? American Economic Review, Vol. 102, no. 7, pp. 3439-3461. Appendices Figure 1: Demand and Supply curve showing market equilibrium Price S PEMarket Equilibrium D QE Quantity S Supply curve PE Equilibrium price D-Demand curve QE Equilibrium quantity Figure 2- An increase in demand for houses raises the price of Sydney houses Price Supply P1 P0 D1 D0 Q0 Q1 Quantity Figure 3: A decrease in supply of houses raises the price PriceS1 S0 P1 P0 Demand Q1 Q0 Quantity Figure 4: An increase in supply by building more houses lowers the price PriceS0 S1 P0 P1 Demand Q0 Q1 Quantity 1

Taoist Reading of Tintern Abbey by William Wordsworth :: Poetry Religion Taoism

Wordsworth's 'hsà ¼': towards a Taoist reading of Tintern Abbey Five years have passed; five summers, with the length Of five long winters! And again I hear These waters, rolling from their mountain springs With a sweet inland murmur. (1-4) "Tintern Abbey"'s opening lines prepare the reader for a reunion, notable in tone not only for the sense of anticipation with which the poet apprehends this moment, but equally so for the poignancy which immediately inflects the poem's proceedings. My reading of "Tintern Abbey" takes as its most prominent concern the sense in which Wordsworth's "Revisiting the Banks of the Wye" represents a haven-seeking of sorts. Since his visit to the Wye in 1793, much has happened to Wordsworth: he has found, and relinquished, his first romantic love in Annette Vallon. As a young would-be radical, sympathetic to the ideals of the French Revolution, he finds himself at odds with London's entrenched conservatism. In 1795, after well over a decade of only intermittent contact with his sister, Wordsworth and his beloved Dorothy are reunited at Racedown, at about the same time that they make the acquaintance of Samuel Taylor Coleridge. Within two years of this happy occasion, the two Wordsworths wi ll move to Alfoxden to be near Coleridge. The ensuing years of intense friendship and creative discourse will yield, by 1798, the collaborative Lyrical Ballads, to which "Tintern Abbey" belongs. As we consider the tumult and activity that have characterized this period of his life, we might well speculate upon the nature of the thoughts going through Wordsworth's mind as he surveys the Abbey from his vantage on the riverbank; my own temptation is to equate the quietly reflective tone of the poem with the Taoist notion of hsà ¼. In Taoism hsà ¼ is defined -- in describing a state of mind -- as meaning: absolute peacefulness and purity of mind and freedom from worry and selfish desires and not to be disturbed by incoming impressions or to allow what is already in the mind to disturb what is coming into the mind. Hsà ¼-shih means unreality and reality, but hsà ¼ also means profound and deep continuum in which there is no obstruction. (Wing-tsit Chan, A Source Book in Chinese Philosophy. Princeton University Press, 1963.