Monthly Archives: October 2013

Currently wage growth is at is all time low since 1982. The decrease in costs will result in more disposable money that can be used in several different ways such as investment in infrastructure, human capital or technology. If the business decides to invest in human capital this will cause for the SRAS to increase. an example of an investment on human capital can be training programs which will make the labour more skilled, thereby improving the quality of human capital. The skills gained from the training will convert to an increase in productivity. More productive labour will lead to higher output which can be translated into increasing SRAS in economic terms.

Picture: http://www.bized.co.uk/educators/16-19/economics/adas/activity/adas.htm

The effects of a shift rightwards in the SRAS curve will cause will cause a increase in output. Because with the training program the employee’s have become more skilled. Higher levels of skill will result in more productivity and output. this shift will increase revenue’s of the firm and will also benefit the RGDP in a macroeconomic perspective. From my knowledge of COMM101 we have learned that employee turnover is a big issue in firms and constant hiring is very costly. Firms, through investing in their employee’s can increase revenue’s and decrease turnover resulting in a better more successful company.

COMM101 Topic: Macroeconomics, Human Resources and Investment

Bureaucracy is  a vertical organizational structure as mention in class. Now I will further explain the characteristics of this vertical structure. Bureaucracy is founded on the principles of logic, order and legitimate authority. The theory has very specific characteristic like division of labor, hierarch of authority, rules and procedures, impersonality, careers based on technical skills. 

Bureaucracy has been an appropriate theory to adopt by governments and large corporations to keep everything as efficient and fair as possible.. Everything in a bureaucratic organization is planned out. The duties and responsibilities of every worker are clearly stated and have to be achieved by the way the authorities tell you to. Decision-making is very slow in bureaucracy. The person who has the highest authority decides everything. Being restricted in these means (authority, duty, regulations… etc.) brings a huge resistance to change. Bureaucracy is the opposite of what the modern business world is today. We are in an age where business’s need to be dynamic, fast and flexible to survive. Bureaucracy is proven to be too slow and expensive. In the age of technology knowledge travels faster than ever and to co-op with the modern market managers and workers need to have the power of decision making, if not huge opportunities could be lost.

 COMM101 Topic: Organizational Structure

Patagonia is a very environmentally and sociably responsible business. Patagonia’s goal as a business is to reach the impossible, to be “sustainable”. The business commits at least 1% of its sales to the environment. The company has several initiatives and alliances with environmentally active organizations and charities. Almost all Patagonia’s products are made from recycled material. The company is not only environmentally responsible but it’s also socially responsible. They have a universal approach to over-seas manufacturing.  It has suppliers all over the world and makes sure its values are integrated in the counties they outsource the manufacturing.

Corporate Culture

Patagonia’s values are very important determinants of its corporate culture. The most valued outcomes are clearly stated in the mission statement that is made out of 3 parts. The mission statement works like Maslow’s pyramid[1], without achieving the 1^st step they cannot achieve the second one. Their mission statement is step by step.

1-    Make the best product

2-    “Cause no unnecessary harm.” (Not, no harm because sustainability is impossible. What they are aiming for is to minimize damage by using renewable and recyclable material)

3-    Use business to inspire and implement solutions to the environmental crisis.

COMM101 Topic: Corporate Culture & Social Responsibility