Thesis Chapter free essay sample

The call center industry is considered as one of the newest blooming industry in the Philippines, earning around US$I billion in 2005 alone. Although there has been a worldwide recession during the start of their industry, they have managed to grow notably and make a name. Presently, it has provided employment for 96,000 Filipinos. In fact, the Philippines is now considered the call center capital of the world (DOST- COT, 2012). Call center employees are required to display patience and empathy in dealing with their customers demands thus, employees who can manage their motions more effectively is much likely to perform better (Hang, Chance, Lam Nan, 2010). This type of Job requires telephone contact with the public and call center employees are expected to provide or perform emotional labor (Household; as cited in Deere, Iverson, Walsh 2002). They are expected to convey emotions based on what the organization expects from them and these emotions were intended to create the desired reaction from the customer. We will write a custom essay sample on Thesis Chapter or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Erickson and Wharton (as cited in Deere, Iverson Walsh, 2002) stated that the employees are expected to appear happy, nice and glad to be able to serve the customer even if they are experiencing negative emotions at the moment. The key feature of this type of work is conveying the emotions that were specified by the organization together with the rules of employment. Household (as cited in Deere, Iverson, Walsh 2002) claimed that the most probable outcome of performing emotional labor is Job-related burnout. The psychological health is crucial for good Job performance; however, it is often neglected in the call center industry both by employers and employee. Job reference is conceptualized as the level wherein an individual does ones role with consideration to the organizations standards (Knavery, as cited in Mishear Anaphora, 2010). Excessive Job demands and continuous hassles may result in a chronic state of physical and emotional depletion or the experience of emotional exhaustion. Emotional exhaustion is the core component of burnout and it has significant implications with the quality of ones work life and to the optimal functioning of an organization (Sahara, 1997; Shirrs, as cited in Byrne, Cropland, and Molder, n. D. ). The nature of call center Jobs which involves spending all day on the phone, dealing with people one after another is the primary source of stress to the employees because the nature of the Job is difficult (Iraqi Sure, 2008). Aside from the emotional exhaustion experienced by employees, this study also covers three possible factors, which might predict Job performance: emotional intelligence, civil status and Job ratification. Salvoes and Mayer (1990) provided definitions of emotional intelligence (E) : as the ability to perceive accurately, appraise, and express emotion; the ability to access and/or generate feelings when hey facilitate thought; the ability to understand emotion and emotional knowledge; and the ability to regulate emotions to promote emotional and intellectual growth. E able to manage their emotions so that they can be able to display the emotions desired by the organization (Hurt Moon, 2011). The variable civil status in this study refers specifically on the marital aspect of the individual; married or single. The last possible predictor of Job performance is ratification. Ratification refers to the repetition of the tasks performed in the Job which will be represented by customer purp ort representatives and technical support representatives. Call center agents within Metro Manila are asked to take part in the study. The participants are divided with equal representation for civil status and ratification of their Job. There are a total of 320 participants. Non-discriminative snowball sampling is used in selecting the participants. Three scales are utilized, each scale measures one construct, the variables measured are: emotional intelligence, emotional exhaustion, and Job performance. Statement of the Problem This proposed study determines the possible predictors of Job performance and the editing role of emotional exhaustion. Specifically, the study intends to answer the following questions: 1. Do the following significantly predict Job performance? Emotional intelligence b. Civil status c. ratification 2. Does emotional exhaustion mediate the relationship between Job performance and the following: a. Emotional intelligence Review of Related Literature The review of related literature focuses on studies which discuss the relationship of each predictor variables to Job performance. Each variable is defined and this section also includes results and discussions from previous studies that are erectly and/or closely related to the study. However, there is limited literature available on the relationship between the variable ratification and Job performance. Also, studies on the relationship of emotional intelligence to Job performance show inconsistent results. Job Performance Knavery (as cited in Mishear Anaphora, 2010) conceptualized Job performance as the level in which an individual performs ones role in consideration of certain standards set by the organization. It is the combined value of the discrete behavioral episodes that is performed by the individual for the organization over a standard interval of time (Motility, Barman, Schmitt, as cited in Sahara Regenerated, 2011) and is divided into two dimensions. The first dimension, task performance, refers to behaviors that are directly linked with Job completion and it consists of carrying out technical processes and maintenance and servicing of technical requirements. The second dimension is contextual performance; this dimension pertains to an individuals interpersonal behaviors or actions that benefit the organization. This dimension comprises different activities like helping and volunteering to carry out tasks (Motility et al. As cited in Sahara Regenerated, 2011). These dimensions lead to raising awareness about what contributes to an individuals overall performance in the workplace. Emotional Exhaustion Emotional exhaustion is a chronic state of physical and emotional depletion which results from excessive Job demands and continuous hassles (Shirrs, as cited in Byrne, Cropland, and Molder, n. ; Sahara; as cited in Wright and Cropland, 1998). It is a significant topic of interest for organizational researchers because it has important implications for the quality of work life and for optimal organizational injunction. Emotional exhaustion is one of the three components of burnout, a psychological response to work-related stress. The two other components are diversification and reduced personal accomplishment (Mascara, Schaeffer, Letter, as cited in Deere, Iverson, Walsh, 2002). Focusing on emotional exhaustion, even if it is Just one part of the three-component conceptualization of burnout, can be Justified by two issues. First issue is that, although past research about burnout was dominated by the three-component conceptualization as it elates to measurement of burnout, other researchers have questioned Machs three component conceptualization and other conceptualizations were proposed for the processes underlying burnout (Demerit, Beaker, Machinery, Schaeffer; Pines, Aarons, Carry; Shirrs, as cited in Byrne, Cropland Molder, n. D. Hellbender; as cited in Demerit Moister, 2010) and the second issue is that, even though the alternative conceptualizations vary in different ways, all of them included emotional exhaustion as a primary component of burnout (Hellbender, 2007). This suggests that emotional exhaustion is indeed central to the experience of burnout because it is the most consistent with its relationships with outside variables such as commitmen t and Job satisfaction (Corded Doughtier; Demerit; Green, Walked, Taylor; Lee Seaports; Hellbender; as cited in Wright Cropland, 1998). Although the three components are important, a growing number consensus based on previous research has concluded that emotional exhaustion is the key dimension of burnout (Corded Doughtier, as cited in Wright Cropland, 1998). According to Shirrs (as cited in Byrne, Cropland, Molder, n. D. ), the core meaning of burnout can be best found in the physical and psychological depletion that characterizes emotional exhaustion. He further noted that defining burnout as emotional exhaustion will help distinguish it from other social science concepts. Wright and Cropland (1998) focused on emotional exhaustion derived from the Conservation of Resources (CORE) theory that provided particular valuable insights on prolonged emotional exhaustion. The framework stated that emotional exhaustion is most likely to manifest if an individual experienced an actual resource loss, or a perceived threat of resource loss or if the individual had been in a situation where ones resources were inadequate to meet work demands, or when in a situation in which the return of an investment of resources were not obtained (Hobble, 1988 as cited in Wright Cropland, 1998). In a one-year longitudinal study conducted by Wright and Cropland (1998), and Job performance to emotional exhaustion. Wright asked social welfare workers employed by a large city on the West Coast of the United States (N = 64) to participate n the study by meaner of a direct contact procedure. The actual sample included 52 employees, representing a response rate of 81%. The mean age for this mostly male (69%) sample was 42 years; the mean tenure was 13 years. Emotional exhaustion was measured with Mascara and Jacksons (1986) nine-item emotional exhaustion scale (Mascara Burnout Inventory). This nine-item scale measured how often one feels emotionally overextended and exhausted by ones work. Results showed that emotional exhaustion was unrelated to Job satisfaction, it was associated with both performance and subsequent turnover. Multiple regression analysis further demonstrated that emotional exhaustion predicted both turnover and Job performance, even after negative affectively and positive affectively were controlled. Call center employees experienced high levels of emotional pressure and work- related strain, which caused poor performance as well as high turnover (Highs; Vary; Rose Wright; as cited in Hang, 2010). Emotional Intelligence The concept of emotional intelligence originated from Thorniness (1920) concept of social intelligence. Salvoes and Mayer (1990) provided definitions of emotional intelligence: as ones capability to clearly convey emotions, the ability to make sense of what one feels when processing a thought, the ability to comprehend and interpret emotion and emotional knowledge, and lastly, the ability to manage emotions in a way that enhances ones emotional and intellectual growth. There are two constructs of emotional intelligence (E): trait emotional intelligence and ability emotional intelligence (Peptides, Burnham Manville, 2007). Trait emotional intelligence which can also be called trait emotional self-efficacy focused on the motion -related dispositions and self-perceptions which are measured using self- report while the second construct, that is ability emotional intelligence or the cognitive-emotional ability focused on the emotion-related cognitive abilities which can be measured through maximum-performance tests. Trait El and ability El are different in terms of measurement and conceptualization because Trait El is measured using self-reports while ability El is performance-based and for their differences in conceptualization, Trait El is based on personality trait while ability El is based on the cognitive ability (Peptides et al, 2007). Emotional Intelligence on Job Performance According to Munchkins (as cited in Barbet, Barterer, See, 2004), there is a lack of literature on organizational behavior that focuses on the emotional aspect because people often see emotion as the complete opposite of logic. In line with this rising interest in emotions, studies have been conducted in which the role of emotional intelligence in individuals and organizational performance has been demonstrated (Bar-on; Coleman; as cited in Moon Hurt, 2011). Coleman (as cited in Moon Hurt, 2011) defined emotional intelligence as a competency of managing oneself and ones relationships with others, making effective teamwork, leading others, and forecasting the future, all of which had positive effects in terms of efficacy and Job performance. Emotional intelligence is important for employees because it is essential for them to be able to manage their emotions so they may be Individuals who are emotionally intelligent cope better with lifes challenges and job stresses, and therefore are psychologically and physically healthy. It was also suggested that emotional intelligence aids individuals in managing Job stress and remotes adaptability to challenging environments so that distress or burnout are avoided (Bar-on, as cited in Moon Hurt, 2011). Contrary to the previous studies mentioned, a study conducted by Gray (2010) showed that there was no statistically significant relationship between emotional intelligence and Job performance. The sample consisted of 268 call center (45 leaders and 223 raters) across different age and race groups. All of the participants completed the 3600 Emotional Competency Profiler (ESP.) in order to measure emotional intelligence whereas the Job performance data were obtained from the management team and an average score of their performance over a one-year period was examined. Civil Status on Job Performance The role of civil status on Job performance is still in need of more studies that will focus entirely on the relationship of the two. However, there are studies that are related to civil status and Job performance that offers different perspectives on how job performance varies depending on civil status. Johnston and Keeled (as cited in Russell Rush) 1987 said that married individuals may be perceived more favorably than singles because marriage is received with high value, a desired characteristic and as an important state for the development of an individual. Russell and Rush (1987) asked 160 male and female undergraduates to provide performance evaluations and attributions for a poor- performing stimulus employee depicted as male or female, either single or married. Results showed no significant difference between the evaluation of the males and females. However, when it comes to civil status, it shows that married mothers were evaluated most favorably while single females were least favorably evaluated. Their endings were interpreted through the societal values individuals have regarding employment and civil status. Being employed is positively evaluated because individuals perceive it as a factor that contributes to an individuals sense of life satisfaction and positive mental health. Ratification The forms of service that call center employees provide may vary from providing inbound or outbound services and the management practices of the call center companies (Bait; Wood, Holman Stride; as cited in Hang et al. 2010). Majority of the work they provide is characterized by high degrees of ratification and employee control (Knights McCabe; Taylor Pain; Franken, Corrosions, Shire Tam; Holman Fernier; Taylor, Baldly, Pain Ellis; as cited in Hang et al. , 2010). The repetitive nature of the tasks performed in call centers is a distinctive feature of the Job (Jennie, Hutchison, Purcell; Taylor Pain; as cited in Deere et al. 2002) which led to the expectation that employees in cal l centers will have higher level of emotional exhaustion due to its lacking of task variety and routinely nature (Wharton, as cited in Deere et al. , 2002). Emotional Intelligence, Emotional Exhaustion and Job Performance particularly relevant to work behavior in call centers, because abilities to manage relationships and to show empathy and social sensibility when needed are the prerequisites for good performance in the call center workplace. Employees who are high in Emotional Intelligence (E) have lower risk of experiencing emotional exhaustion and burnout. The reason behind this is that, employees high in El have better interpersonal skills and are more able to tolerate emotional pressure which implies that employees high in El will probably exhibit higher performance at work. Based on a study conducted by Highs (2004), El was positively related to individual performance. The data were collected from 289 call center employees in the I-J. In addition, Van Roy and Visceral (2004, as cited in Hang et al. , 2010) proposed that emotional intelligence should be a predictor of burnout (p. 87) which in turn may influence the work performance of employees. Hang et al. (2010) hypothesized that in call centers, burnout may be an intermediate variable that mediates the relationship between emotional intelligence and work performance. They examined the Joint effect of leader-member exchange ELM) and emotional intelligence (E) on burnout and work performance. Results based on data collected from 493 leader-member dyads in the call center of a large Chinese telecommunication company indicated that ELM was negatively related to burnout, in which the variable emotional exhaustion is a component, and was not significantly related to objective work performance. Furthermore, the effects of the four dimensions of El (self emotion appraisal, other-emotion appraisal, use of emotion, and regulation of emotion) on burnout and performance was examined and found that burnout mediated the link between use of emotion and work reference. (Hang, et. Al , 2010) A study conducted by Moon and Hurt (2011) examined how emotional intelligence (E) affects emotional exhaustion (burnout) resulting from emotional labor, and how emotional exhaustion influences an individuals Job performance in terms of organizational commitment and Job satisfaction. The participants include retail sales employees who had worked at major department stores (Lotto, Shingle, and Kayaking) in South Korea for at least one year. They were asked to complete a self-administered survey. Results showed that the three factors of emotional intelligence appraisal of motions, optimism, and social skills were negatively associated with emotional exhaustion, which was also negatively related to Job performance. In addition, the mediating effect of emotional exhaustion was confirmed in the relationship between job performance and appraisals of emotions, optimism, and social skills as factors in emotional intelligence. The literature discussed in this chapter presents observed relationships between the variables and Job performance, and the mediating role of emotional exhaustion. Researches stated that emotional exhaustion being the core component of burnout an lead to deterioration of ones Job performance. In previous studies, researchers also pointed out that emotional intelligence has an existing role on a persons individual and organizational performance. Likewise, civil status affects Job performance of individuals. However, the results of the studies about civil status and job performance are not consistent whether married people or those who are single The diagram shows the predictor variables, emotional intelligence, civil status and ratification, the possible mediating variable; emotional exhaustion, and the criterion variable; Job performance. The solid lines indicate relationships between variables that are supported by literature. The broken lines indicate that no related literature shows the relationship between the two variables. The diagram shows the predictor variables, emotional intelligence, civil status and ratification, the possible mediating variable; emotional exhaustion, and the criterion variable; Job performance. The solid lines indicate relationships between variables that are supported by literature. The broken lines indicate that no related literature shows the relationship between the two variables. Figure 1 . The variables emotional intelligence, civil status and ratification are predictors of Job performance among call center agents in Metro Manila with emotional exhaustion as a mediating variable. The predictor variables are emotional intelligence, civil status and ratification. Emotional intelligence is ones capability to clearly convey emotions, the ability to make sense of what one feels when processing a thought, the ability to comprehend and interpret emotion and emotional knowledge, and lastly, the ability to manage emotions in a way that it enhances ones emotional and intellectual growth (Mayer amp; Salvoes, 1990). In this study, civil status pertains to individuals who are married or single by law. Ratification encompasses how patterned and monotonous the nature of an employees work is. It pertains to the nature of work that the individual is engaged in, which may vary depending on whether the call center agent is a customer support representative or technical support representative. The criterion variable is Job performance, which is the level wherein an individual does ones role with consideration to the organizations standards (Knavery, as cited in Mishear and Anaphora, 2010). The predictor variables and the criterion variables are mediated by emotional exhaustion which is defined as a chronic state of physical and emotional depletion which results from excessive Job demands and continuous hassles (Shirrs, as cited in Byrne, Cropland, and Molder, n. D; Sahara; as cited in Wright and Cropland, 1998). Hypotheses 1. The following variables significantly predict Job performance a. Emotional intelligence 2. Emotional exhaustion mediates the relationship between Job performance and emotional intelligence, civil status, ratification.

Argumentative Writing with Stylistic Devices

Argumentative Writing with Stylistic Devices Argumentative Writing with Stylistic Devices The fact that argumentative papers are actually the most difficult papers to write is very common. However, there are many things involved in writing such. On many occasions when you are putting up an argument, people are not buying what you are writing or saying just because it is the truth. Readers usually tend to look at the beauty of what you are putting into words and how sophisticated and stylish it is. This is why you have to do everything possible to garnish your argumentative paper with numerous stylistic devices. There are many of them, but we will treat only 7 of the most popular ones. Rhetorical question This is actually one of the best stylistic devices you can attract attention to your argument with. It is the concept of asking questions for the simple sake of making an effect, and not because you need an answer. It is used to emphasize a thing that is already known, and it does the job of drawing attention or making the audience reflect over the mentioned issue. For example, who will defend the poor if the government does not involve itself in it?. Metaphor This is another great stylistic device. Here, you try to identify a word or phrase as a similar thing to something it does not have any relationship with. It is still a rhetorical tool used to draw attention to a particular situation. It simply highlights the similarities between the two, which may not be existent after all. An example of a metaphor is orange is the new black. Parallelism This is another great device you must form the habit of using here. You try to draw some parallel between parts of the same sentence. It involves using similar structure/construction in several clauses. This is mainly used to give a good pattern to the passage. An example is what you do in the dark will be revealed, what you do in the open will be revealed. Irony Irony is a good device that entails using an expression to give an opposite meaning. Here, what you say is exactly the opposite of what you mean. This is used to show some emphasis and actually bring some level of humor to your argumentative essay. For example, I hate life because it is very sweet. Repetition Another very important device that is used in the course of argumentative essays. Here, you simply repeat words within the same poetic line or within the same sentence in no particular order. This has a way of making the sentence or even phrases very emphatic and also beautiful to read. Many people do not see this as a stylistic device or figure of speech, but that is actually what it is. For instance what is worth doing is worth doing well. Personification This is described as the concept of attributing the characteristics of human beings to animals and inanimate objects. You make it look as if they have human feelings and behavior. This will always make your narrative more lively and interesting. And that is what your argumentative essay needs to make it less official-like and more reader-friendly. An example is â€Å"The proofs hang over this statement to crash it when the time comes. Hyperbole This is the stylistic device for argumentative writing that is also known as deliberate exaggeration. It is seldom used, and it simply means the use of highly exaggerated terms to draw emphasis and attention to your message. An example is The room was seemingly capable of holding millions of people. So, all in all if you are good at argumentative paper writing without these stylistic devices, it’s certainly more than great. But, in case you are eager to emphasize the message and strengthen your persuasion, these are the tools you must use. Make your academic writing more efficient with the means of stylistics.

Acetylcholine and Nicotine agonist Essay Example | Topics and Well Written Essays - 750 words

Acetylcholine and Nicotine agonist - Essay Example The evaluation potential of many functions of presynaptic NAChRs would help in finding out how nicotine bring changes to the brain. Considering a cholinergic projection from MHb (medial habenula) by retroflexus fasciculus to the IPN (interpeduncular nucleus) would exist. In this regard, the ability for nAChr functional diversity is extensive in the IPN. This implies that presynaptic IPN could modulate the production of acetylcholine within the IPN. Different studies have confirmed that the facilitation of nicotine by presynaptic would agonist the release of acetylcholine out of the IPN. The prime characteristic of this process includes effects of alpha-conotoxins, agonist and agonist investigation, B2 mutation null effects, and the dopamine nAChR mediated release. Salbutamol could be referred to as am adrenergic agonist receptor, which is used to reduce on the effects of bronchospasm in situations like asthma. It is also used in the treatment of cystic fibrosis, pulmozyme, acetylcysteine, and iprptropium that is linked to DOK-7. As an example of a beta2-agonist, sulbutanol can also be used in obstetrics. The salbutamol that is intravenous could be utilized as a tocolytic in relaxing the smooth muscles of the uterus hence delay premature labor. This has made sulbutamol be the most preferred agent. In the context of this experiment, Salbutamol antagonist’ caused parallel shift of the given dose response curve. This implies that Salbutamol antagonist’ can elicit a slight and dose-dependent contractile response in the ileum that is induced by acetylcholine. While the Salbutamol agonist’ potentiated the effect of Nicotine and shifted its associated dose response curve towards the left as shown in the graph, it did not affect wholly the contractile effects of the acetylecholyne. This implies that Salbutam agonist as proven by the iochemical studies, tend to act selectively. As far as EC50 of the

Discussion12 Assignment Example | Topics and Well Written Essays - 750 words

Discussion12 - Assignment Example embassies as well as the 9/11 attacks in the U.S. soil. U.S. counterterrorism efforts have led to $1 trillion being spent in unending wars. Also, overreliance on oil has led to global warming as a result of emission of green house gases from the burning of gasoline. 2. The idea of America keeping up with the war against communism cannot be ruled out in totality. Instead, I hold the opinion that America should oppose communist’s regimes that deny citizens their basic rights. It is evident that Democracy stands out as the best system of governance as it takes a way power from few individuals and gives it to the people. It is very dangerous to entrust power to just few persons as their selfish interests can drive them into risking the lives of an entire nation. For example, North Korea is a communist state whose leader, Kim Jong-un, is putting the lives of the nation at risk by manufacturing nuclear weapons. Similarly, Hong Kong has recently been protesting against poor leadership in Beijing. Unfortunately, the citizens are denied the power to choose their preferred leader as communist regimes do not provide for that. Therefore, I think United States should continue promoting democracy across the world by setting a good example of how democ racy gives the citizens power. In situations where there is extreme violations of human rights in communist state, America as the leader of the world should intervene by setting up with the right systems of government that can protect the citizens. 3. The idea of immigration into the U.S. is common because of the many opportunities that the country offers. In fact, before I came to America I always had that it is a country of great opportunities. I have come to realize that many people migrate into the U.S. year in search of better jobs, better education, and better life. However, life as an illegal immigrant is not easy as every day you are under constant watch of security officers.

International Business Questions Essay Example | Topics and Well Written Essays - 1500 words

International Business Questions - Essay Example This means that the marketing and management, amongst various others, strategies they deploy address regional and local markets and not the global one per se. Within the context of the stated, and as affirmed by Stevens and Bird (2004) multinational firms perceive of the global market as a series of interconnected local and regional markets and, hence, pursue strategies which are consistent with this perspective. Hence, despite their popularly being referred to as multinational, global firms justifiably pursue inherently regional strategies. The pursuit of regional vs. global strategies is partially determined by the imperatives of balancing between globalisation and localisation. There are intense, contradictory pressures on multinational enterprises to integrate across borders as well as to respond to local pressures; that means, to pursue local strategies which address the domestic/local market and global strategies which target the international market. Indeed, were multinational firms to eschew the imperatives of adaptation to the local market and the design of strategies which address its characteristics, they would probably be perceived of as an alien entrant into the market, thereby arousing consumer resistance (Reed, 1997; Rugman, 2001). Were they, however, to pursue local/domestic or regional strategies, they would be perceived of as part of the market in question, thereby offsetting the potential for consumer resistance. In other words, and as Rugman (2001) emphasises, the success of multinational firms is pa rtially predicated on market perceptions of them as belonging to and understanding of the market in question, entailing the design of strategies which are consistent with the micro-environment. International strategies are inconsistent with the very notion of the micro-environment while regional strategies are (Roth and Morrison, 1990; Rugman, 2001). It is for this reason that multinational firms adhere to regional, as opposed to international strategies. It is important to emphasise that corporations are embracing the basic principles of globalization, as evidenced by ever increasing cross-border trade and the widening grip of MNEs on international business. It is doing so, however, within the context of regionalization. Trade laws and enthusiasm for globalisation aside, the fact is that while markets are interconnected, there is no international homogeneity of consumer tastes and market characteristics. Safarian (2003), arguing for market interconnectedness but against homogeneity, maintains that the reality of globalisation is pockets of globalisation. This means that globalisation, as in market homogeneity and interconnectedness, is only valid and present on the regional level. There is no such homogeneity, although there is interconnectedness, on the global/international level. The implication here is, as may be inferred from several scholars, is that there is simply no basis for the formulation and implementation of global marke t and marketing strategies. The global market, as in the homogeneous and interconnected one, simply does not exist (Sheth, 2001; Safarian, 2003; Rugman, 2005; Dicken, 2007). From this perspective, therefore, firms cannot pursue international/global strategies and, indeed, have no choice but to adhere to regional ones within the contex

Examining the importance of cost allocation

Examining the importance of cost allocation Cost allocation is the process of identifying and assigning the costs of services necessary for the operation of a business or other type of entity. Unlike a cost rating, the allocation is less concerned with the actual amount of the cost, and more concerned with allocating or assigning the cost to the correct unit within the organization. From this perspective, cost allocation can be seen as a tool that helps track all costs associated with the ongoing operation more efficiently, since each cost is associated with specific departments or groups of departments within the organization. A simple example of cost allocation would be the wages or salary of an employee assigned to work in a specific department. In a hospital, a nurse is normally assigned to a specific wing or floor, with the costs allocated to the general operation of that unit. As long as the nurse continues to work his or her assigned shift within that unit, the salary and benefits accrued are associated with that unit. However, if the nurse is called upon to fill in on another floor or unit, such as spending an entire shift working in the emergency room, the salary and benefits earned for that period of time may very well be allocated to the unit where the nurse worked, instead of his or her permanent wing or floor. There are several reasons why cost allocation is important. One has to do with accurately assigning costs within an organization, so that it is possible to know exactly what types of costs were incurred in the operation of a given area in the organization. This is not only important information to consider when creating an operating budget, but is also key in calculating taxes that must be paid to local, state, and federal tax agencies. In a number of countries around the world, the way that costs are allocated can have an impact on how much the organization pays in taxes, making it necessary to comply with any government regulations that have to do with the allocation of costs within the organization. Another benefit of cost allocation has to do with simply keeping track of expenses for internal planning purposes. While some expenses are indirect costs and benefit more than one area of the operation, there is still a need to allocate direct costs in a manner that is logical and accurate. Even when the costs are incremental, meaning they are stretched out over several accounting periods, making sure the costs are assigned properly can make a big difference in how well each unit within the business or other entity works within their share of the overall budget. When it is apparent that one unit will exceed its assigned budget, steps can be taken to implement cutbacks on non-essential service costs, while finding ways to adjust the overall budget to allow for the continuing support of essential functions. Organizations of all types and sizes engage in the task of cost allocation. Businesses use this strategy as a tool for planning and keeping within a budget. Non-profit entities utilize the tool as a way of providing as many services to its members as possible, while still making the most effective use of its resources. Even households can make use of the concept of cost allocation when planning the operating budget for the family. As a means of identifying and properly assigning costs, this approach to allocation helps to provide focus and structure to financial planning in a way that would be extremely difficult otherwise. Direct Costs In finance, direct costs are those costs that are associated with a specific project, department, or activity. Sometimes referred to as hard costs, expenses of this type are found with just about every type of business activity, beginning with research and development, moving through sales and marketing campaigns, and into the production of different types of goods and services. A direct cost is often some type of fixed expense, but there are some situations where a variable expense may also fall into this category. The key to understanding what does and does not constitute direct costs is to identify costs that apply only to a specific project, and have nothing to do with any other activity that is taking place concurrently. In order to be a true hard cost, the expense must be for resources that benefit that one project. For example, if the project is to construct a telephone, the costs for the handset casing, internal circuit boards, and the wiring would all fall into the category of direct costs. In addition, the wages paid in exchange for the labour to build the telephone would also be a direct cost. In situations where expenses do not go to benefit a specific task or project, the cost would be considered indirect. Utilities, such as electricity, used to operate a facility that houses several different product lines or other activities would not be considered direct costs, since those utilities benefit more than one specific project. Expenses of this type would be shared among the different projects, rather than be tied directly to any one activity. Not every business operation will evaluate direct costs in exactly the same way. Depending on the structure of the company, something that is considered a hard cost in one business culture may be classified as an indirect cost in a different culture. As long as the internal guidelines for determining what is and is not a direct cost remain consistent, it is still possible to properly determine the historical cost or the cost of goods sold with a high degree of accuracy. That same consistency makes it possible to compare the absorption costing from one period to the next, and determine if there has been an increase in direct costs associated with a particular function or project. Indirect costs Indirect costs are business expenses that are not directly related to a particular product or function within the general operation. Costs of this type tend to have an impact on the overall operation of the business, making it very difficult to charge the costs to a specific department or associate them with one function. Costs of this type are sometimes referred to as overhead, a term that helps to describe the broad application of these costs. There are many examples of indirect costs that occur in both small and large businesses. A general supply for the administration of the business is one example. Items such as paper, pens, and other essentials that are utilized in the record keeping and general clerical functions of each department are often classified as an indirect cost. In like manner, services such as auditing the accounting books or the preparation of legal documents are expenses that impact the entire operation and are usually considered indirect in nature. Several of the expenses related to the upkeep and maintenance of business facilities are considered indirect costs. Utilities such as electricity, water, and Internet access are expenses that benefit the business in general and thus are classified as overhead expenses. In like manner, the cost of renting or leasing business space is also part of the overhead, making it an indirect cost. There are examples of what may appear to be an indirect cost actually being a direct cost. One example has to do with employee salaries. When the employees are performing their usual functions, they are benefiting the business as a whole; their wages and salaries are considered indirect costs. However, if those same employees are assigned to a specific project that is the sole focus of their workday for a period of several days or weeks, their wages or salaries can be considered a direct cost, with that cost directly applied to that project. Overhead Costs A business may take in one sum of money, but it is not likely that all of it can be considered profit. This is because a business is generally required to pay expenses. Those expenses are commonly referred to as overhead costs. Examples of an overhead cost include salaries, maintenance, and production expenses. It is common for businesses to track their net and gross income. This is important because these figures represent two different values. Gross income refers to all of the money that a business takes in. This figure may be very large. Some businesses have a wide variety of expenses to pay, while others only have a few expenses. In either case, almost every business will have at least some overhead costs. Net income refers to the amount of money that remains once overhead costs have been deducted. This amount can be significantly lower and may not exist at all. This is because it is possible for a company to have overhead costs that consume all of its income. In some instances, a companys expenses can even cause them to be in debt. Without calculating overhead costs, a business cannot know exactly how much money it is making. If ABC Toys buys its merchandise from a factory, some of the money that it receives from the merchandise must be used to not only buy more merchandise but also to pay for items such as electricity, transportation, and salaries. Even if ABC Toys manufactures its own merchandise, there will still be costs such as purchasing machinery and raw materials. How overhead costs are categorized depends on a companys accounting methods. Some businesses are very basic in the figuring of their expenses. Other businesses, however, have very complex methods that may require various departments to individually access their overhead costs. Some businesses access their overhead cost by category. For example, manufacturers may calculate their manufacturing expenses and their non-manufacturing expenses separately. COST ALLOCATION A cost is generally understood to be that sacrifice incurred in an economic activity to achieve a specific objective, such as to consume, exchange, or produce. All types of organizations- businesses, not-for-profits, governmental- incur costs. To achieve missions and objectives, an organization acquires resources, transforms them in some manner, and delivers units of product or service to its customers or clients. Costs are incurred to perform these activities. For planning and control, decisions are made about areas such as pricing, program evaluation, product costing, outsourcing, and investment. Different costs are needed for different purposes. In each instance, costs are determined to help management make better decisions. When incurred, costs are initially reviewed and accumulated by some classification system. Costs with one or more characteristics in common may be accumulated into cost pools. Costs are then reassigned, differently for specified purposes, from these cost pools to one or more cost objects. A cost object is an activity, a unit of product or service, a customer, another cost pool, or a segment of an organization for which management needs a separate measurement and accumulation of costs. Costs assigned to a cost object are either direct or indirect. A direct cost can be traced and assigned to the cost object in an unbiased, cost-effective manner. The incurrence of an indirect cost cannot be so easily traced. Without such a direct relationship to the cost object, an indirect cost requires an in-between activity to help establish a formula relationship. When the indirect cost is assigned through the use of this formula, the cost is considered allocated. The activity used to establish the in-between linkage is called the basis of allocation. TYPES OF ALLOCATIONS Cost allocations can be made both within and across time periods. If two or more cost objects share a common facility or program, the cost pool of the shared unit is a common cost to the users and must be divided or allocated to them. Bases of allocation typically are based on one of the following criteria: cause-and-effect, benefits derived, fairness, or ability to bear. The selection of a criterion can affect the selection of a basis. For example, the allocation of the costs of a common service activity across product lines or programs based on relative amounts of revenue is an ability to bear basis, whereas the same allocation based on the relative number of service units consumed by each product line or program would reflect either the benefits derived or the cause-and-effect criteria. Cost allocation then is the assignment of an indirect cost to one or more cost objects according to some formula. Because this process is not a direct assignment and results in different amounts al located depending on either the basis of allocation or the method (formula) selected, some consider cost allocation to be of an arbitrary nature, to some extent. Costs of long-lived assets are allocated and reclassified as an expense across two or more time periods. For anything other than land, which is not allocated, the reclassification of tangible assets is called depreciation (for anything other than natural resources) or depletion (for natural resources) expense. The bases for these allocations are normally either time or volume of activity. Different methods of depreciation and depletion are available. The costs of long-lived intangible assets, such as patents, are allocated across time periods and reclassified as amortization expense. The basis for these allocations is normally time. Cost allocations within a time period are typically across either organizational segments known as responsibility centers or across units of product or service or programs for which a full cost is needed. Allocations may differ depending on whether a product or program is being costed for financial reporting, government contract reimbursement, reporting to governmental agencies, target pricing or costing, or life-cycle profitability analysis. Allocations to responsibility centers are made to motivate the centers managers to be more goal-congruent in their decisions and to assign to each center an amount of cost reflective of all the sacrifices made by the overall organization on behalf of the center. These allocations can be part of a price or transfers of cost pools from one department to another. ETHICAL CONSIDERATIONS Allocations can involve ethical issues. Often the federal government issues contracts to the private sector on a cost-plus basis; that is, all the actual costs incurred to complete a contract plus a percentage of profit is reimbursed to the contractor performing the contract. A contractor completing both governmental and private-sector contracts may select a formula that tends to allocate more indirect costs to governmental contracts than to nongovernmental ones. A contractor may also try to include in reimbursement requests costs that are not allowable by the governmental agency. A contractor may even try to double-count a cost item by including it as a direct cost of the contract and as a part of an indirect cost pool allocated to the contract. Lastly, a contractor may attempt to have a reimbursement cover some of the costs of unused capacity. Audits are made of costs of government contracts to identify inappropriate costs. SERVICE FIRMS, NOT-FOR-PROFIT ORGANIZATIONS, AND MERCHANDISERS Service and not-for-profit organizations allocate costs, too. The cost object can be a unit of service, an individual client, or a cluster (category) of clients. The costs of a service firm are typically professional labor and indirect costs in support of the labor. The basis for allocating these indirect costs is often professional labor hours (either billable or total) or the cost of such, reflective of either cause-and-effect or benefits-received criteria. For not-for-profit organizations, the proportions to be allocated are best figured in terms of units of the resource on hand, such as the number of full-time equivalents, amount of square footage, or number of telephone lines. An important point to remember is that the principles of allocation are the same for for-profit and not-for profit organizations. The only difference is that the cost objects will be dissimilar. Merchandisers, unlike most service and not for-profit organizations, have inventory that must be costed for external and internal reporting purposes. In these cases, the cost object is a unit of inventory. Incidental costs associated with the acquisition and carrying of the inventory are mostly direct costs easily traceable clearly assignable to the entire inventory, if not to individual units. MANUFACTURERS Manufacturers need to cost the resources required to complete their products. In costing a unit of product for inventory valuation, costs of production are assigned. With the unit of product as the cost object, production costs are either direct costs (traceable usage of materials and labor) or indirect costs (all of the other production costs, referred to as overhead). The indirect production costs are allocated. Traditionally, manufacturers using labor-intensive technologies used a single basis of allocation based on labor, either in hours or in cost, associated with a single indirect cost pool. A manufacturer using a more capital intensive technology might use a non labor basis such as machine hours. Today many firms produce a varied set of products, using varied technologies with many levels of complexity. Such firms need a more refined cost assignment system that uses multiple bases of allocation with multiple indirect cost pools, such as activity based costing. While for product costing a unit of output remains the final cost object, the technology a producer uses can require a cost assignment to an intermediate cost pool (object) prior to an assignment to a unit of output. For instance, a batch technology has a cost assignment first to an individual job order (batch); the total cost assigned to the job order is then unitized over the units in the batch to determine cost of one unit of output. Alternatively, for a given period in a process technology, costs are accumulated by (assigned to) each production process; the total cost assigned is then unitized across the total number of (equivalent) units produced by that process to cost-out a unit of output. Manufacturers also incur service department costs (such as computer center costs) in support of production departments. These service department costs are indirect to a unit of production and for full costing must be allocated, first to respective production areas and then to the units of output. Such allocations are called service department allocations, and the basis of allocation is normally an activity reflective of the nature of demands made on the service department by other departments, both service and production. JOINT PRODUCTION ALLOCATIONS Allocations are also required in a joint production process. When two or more separately identifiable final products initially share a common joint production process, the products are called joint products. The point at which they become separately identifiable is referred to as the split-off point. Manufacturing costs incurred prior to this split-off point are referred to as joint costs and need to be allocated across the different joint products for product costing purposes. The bases for allocating the joint costs typically include (1) relative sales value at split-off, (2) net realizable value at split-off (as an approximation of the sales value at split-off), (3) final sales value at the completion of the production process, and (4) the number of physical units of the joint products at split-off. Many would consider this list of bases to be in an order of descending preference of use. Normally there are additional production costs beyond the split-off point. These additional costs are incurred in order to complete each joint product. For a given joint product, the net realizable value at split-off is calculated by subtracting the additional costs to complete from the final sales value of the finished joint product. SERVICE DEPARTMENT (RE) ALLOCATIONS There are three basic methods to allocate service department costs to production departments or programs in a not-for-profit: (1) the direct method; (2) the step method; and (3) the reciprocal method. The basis for allocation of service area costs should ideally be causally related to the demands made on that area by other areas. Both cause-and-effect and benefits-received criteria are taken into account. If the service areas provide service to each other (referred to as reciprocal services), the reciprocal method is the most accurate, the step method next, and the direct method the least accurate. With different service and production departments as cost objects, costs are initially accumulated on a department-by-department basis. Departments working directly on programs or units of product or service are production departments. The other departments are service departments. The allocation problem then is to reassign service department costs to production departments or programs for both performance evaluation and product or program costing. Within a production department, these allocated service costs are then reallocated to units of service or product according to the bases of allocation that each respective production department uses for its indirect costs. The direct method ignores reciprocal services. A service departments costs are allocated to the production departments according to the extent to which each production department uses (or, for budgeting purposes, intends to use) the services of the service department. This extent is determined on a percentage basis by either the amount of services actually provided by the service department to all the production departments or by the amount of services the service department is capable of providing at normal or full capacity. Variable and fixed costs may be allocated separately, resulting in a dual allocation process (for example, variable costs based on actual usage and fixed costs based on budgeted usage). The step method partially takes reciprocal services into account by allocating service department costs to production departments on a sequential basis. The service department that provides the greatest amount of service to the other service departments is allocated first; the one providing the second greatest amount of service to the other service departments is allocated second; and so forth. The absolute dollar amounts of costs incurred within service departments can be used to break a tie in usage, the larger amount allocated first. Once a service department has been allocated, it is ignored for all subsequent allocations. The reciprocal method takes into account all the reciprocal services by setting up a set of simultaneous equations, one equation per service department. For any given service department, its equation is: Total allocable cost direct costs of the service department costs allocated from each of the other service departments based on this departments use of the other service departments. Once these equations are solved, the resultant allocable cost (sometimes referred to as the reciprocal or artificial cost) is reallocated across all the other departments, service and production, according to the original percentage usages. Two additional issues, fairness and acquiring the service from the inside or from the outside, concern the allocation of a common cost. The amount of common service cost allocated to a using department may be greater that what it would cost that department to obtain the same service from the outside. A variation of the reciprocal method provides an analysis to help the manager of a using department decide whether to obtain the service from another department within the organization or to contract outside for the service from another organization. The amount of a particular service departments cost allocated to a using department may be dependent on the extent to which other departments also use this service department. This does not seem to be fair.

The Pain of the Okies Exposed in The Grapes of Wrath Essay -- Grapes W

The Pain of the Okies Exposed in The Grapes of Wrath      Ã‚  Ã‚   The Dust bowl was an ecological and human disaster in the Southwestern Great Plains regions of the United States in the 1930's. The areas affected were Oklahoma, Texas, New Mexico, and Colorado. The poor handling of the land and years of drought caused this great disaster (Jones "History"). During this time the "Okies"--a name given to the migrants that traveled from Oklahoma, Texas, Kansas, or anywhere in the Southwest or the northern plains to California--encountered many hardships. These hardships are brilliantly shown in John Steinbeck's The Grapes of Wrath. Scholars agree, "The most important fact about the dust storms was not scientific but human: their tragic effect upon people seeking livelihood on the stricken Midwestern farms" (French 4). Steinbeck believed society was inhumane to the Okies and through his novel we can account for how the Okies were treated. By looking at Steinbeck's own personal background and information from historical commentaries we are be tter able to grasp his reasoning for writing the novel because he understood what it was like to grow up as a farmer, and an outsider. More importantly, however, we are able to share in his compassion for the Okies.   Ã‚  Ã‚   To fully understand Steinbeck's reasoning for writing the novel it is important to look at his family and where he grew up. John Ernst Steinbeck was born on February 27, 1902, in Salinas California. His parents were middle-class people who played many roles in the community and cultural life. His father worked as a manager of a flourmill, and his mother taught in a one-room rural school (Swisher 13).   Ã‚  Ã‚   As a child John Steinbeck was shy, and kids often teased him ... ...tions. Reading this book can help us comprehend how close their present is to our past.       Work Cited French, Warren, ed. A Companion to The Grapes of Wrath. New Jersy: Augustus M. Kelley, 1972. Hinton, Rebecca. "Steinbeck's The Grapes of Wrath." Explicator 56 (1990). 11 Sept. 2000<http://ehostvgw1.ep...20%22%Grapes%20of%220Wrath%22%20&fuzzyTerm=> Jones, Andrew. "Charity of the Poor." Analysis of The Grapes of Wrath. N.D. Accessed: 7 Sept. 2000 <http://www.ultranet.com/~gregjonz/grapes/irony.htm> Jones, Andrew. "History of the Dust Bowl." Background History for The Grapes of Wrath. N.D. Accessed: 7 Sept. 2000<http:///www.ultranet.com/~gregjonz/Dust/dustbowl.html> Steinbeck, John. The Grapes of Wrath. New York: Viking, 1967. Swisher, Clarice,ed. Readings on John Steinbeck. San Diego: Greenhaven, 1996.    The Pain of the Okies Exposed in The Grapes of Wrath Essay -- Grapes W The Pain of the Okies Exposed in The Grapes of Wrath      Ã‚  Ã‚   The Dust bowl was an ecological and human disaster in the Southwestern Great Plains regions of the United States in the 1930's. The areas affected were Oklahoma, Texas, New Mexico, and Colorado. The poor handling of the land and years of drought caused this great disaster (Jones "History"). During this time the "Okies"--a name given to the migrants that traveled from Oklahoma, Texas, Kansas, or anywhere in the Southwest or the northern plains to California--encountered many hardships. These hardships are brilliantly shown in John Steinbeck's The Grapes of Wrath. Scholars agree, "The most important fact about the dust storms was not scientific but human: their tragic effect upon people seeking livelihood on the stricken Midwestern farms" (French 4). Steinbeck believed society was inhumane to the Okies and through his novel we can account for how the Okies were treated. By looking at Steinbeck's own personal background and information from historical commentaries we are be tter able to grasp his reasoning for writing the novel because he understood what it was like to grow up as a farmer, and an outsider. More importantly, however, we are able to share in his compassion for the Okies.   Ã‚  Ã‚   To fully understand Steinbeck's reasoning for writing the novel it is important to look at his family and where he grew up. John Ernst Steinbeck was born on February 27, 1902, in Salinas California. His parents were middle-class people who played many roles in the community and cultural life. His father worked as a manager of a flourmill, and his mother taught in a one-room rural school (Swisher 13).   Ã‚  Ã‚   As a child John Steinbeck was shy, and kids often teased him ... ...tions. Reading this book can help us comprehend how close their present is to our past.       Work Cited French, Warren, ed. A Companion to The Grapes of Wrath. New Jersy: Augustus M. Kelley, 1972. Hinton, Rebecca. "Steinbeck's The Grapes of Wrath." Explicator 56 (1990). 11 Sept. 2000<http://ehostvgw1.ep...20%22%Grapes%20of%220Wrath%22%20&fuzzyTerm=> Jones, Andrew. "Charity of the Poor." Analysis of The Grapes of Wrath. N.D. Accessed: 7 Sept. 2000 <http://www.ultranet.com/~gregjonz/grapes/irony.htm> Jones, Andrew. "History of the Dust Bowl." Background History for The Grapes of Wrath. N.D. Accessed: 7 Sept. 2000<http:///www.ultranet.com/~gregjonz/Dust/dustbowl.html> Steinbeck, John. The Grapes of Wrath. New York: Viking, 1967. Swisher, Clarice,ed. Readings on John Steinbeck. San Diego: Greenhaven, 1996.