...Agency Problems and the Theory of the Firm Author(s): Eugene F. Fama Reviewed work(s): Source: Journal of Political Economy, Vol. 88, No. 2 (Apr., 1980), pp. 288-307 Published by: The University of Chicago Press Stable URL: http://www.jstor.org/stable/1837292 . Accessed: 17/10/2012 15:40 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp . JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. . The University of Chicago Press is collaborating with JSTOR to digitize, preserve and extend access to Journal of Political Economy. http://www.jstor.org Agency Problems and the Theory of the Firm Eugene F. Fama Universityof Chicago This paper attempts to explain how the separation of security ownership and control, typical of large corporations, can be an efficient form of economic organization. We first set aside the presumption that a corporation has owners in any meaningful sense. The entrepreneur is also laid to rest, at least for the purposes of the large modern corporation. The two functions usually attributed to the entrepreneur-management and risk bearing-are treated...
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...Answer No 1 Introduction of Company Background A local conglomerate with business in producing semi conductor equipment that located in Petaling Jaya, Selangor with total manpower strength of 260 employees. The Company started its operations in June 2010 with strength of 130 employees and thereafter expanding its businesses globally. Due to increasing demands from all corners of the world, a strategic planning is required to ensure proper planning in production and management where a competitive edge is needed in order to keep ahead of its competitors and to stays competitive and innovative. The Management has recently came up with a new business target or goals for 2012 where they are trying to reduce product defect by 50% and at the same time to have a well competent employees in their own areas of work. This will ensure higher profit when defects and wastage can be reduce or eliminated. In view of the above, Human Resources have been given the assignment to identify problems or issues within the organisation and to propose to the Management on the suitable approach or processes in determining for such needs. Hence, Human Resource has proposed to the Management Training Needs Analysis as series of activities conducted to identify problems or other issues in the workplace and to determine whether training is an appropriate response. The needs are usually the first step taken to cause a change. This is mainly because a needs analysis specifically defines the gap...
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...Human Resources Analysis Savannah Hayes SEC 370 Debbie Travis Human Resources Analysis In the United States there are many labor laws that the cooperate world must up hold by, these laws seem complicated but are actually quite simple once you break them down. For instance, the Fair Labor Standards Act (FLSA) of 1938, as amended, provides for minimum standard for that of both wages and overtime entitlements by employees, and spells out the administrative procedures that needs to be taken by which covered all work time must be compensated for. FLSA also includes provisions related to child labor laws, equal pay, and portal-to-portal activities (U.S. Office of Personnel Management, 2009). Most Illinois employers are covered under that of both the Federal Fair Labor Standards Act and that of the Illinois minimum wage laws. This shows that employers must comply with the laws that provide the utmost highest standards for employees. The minimum wages in Illinois is currently $8.25 an hour. In the case of Garcia vs. San Antonio Metropolitan Transit Authority states that in a five to four decision, the Supreme Court ruled that the Commerce Clause empowers the federal government to regulate the terms and conditions of employment of state workers. This reversed in the National League of Cities vs. Usery (1976), in which the courts ruled that imposing that a minimum wage requirement on that of state governments violated the Tenth Amendment, which resulted in a ruling by the...
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...Labor Market Information: Human Resource Human Resource (HR) Specialist is in charge of managing employees within an organization through the use of strategies and policies. There is now an increasing trend in HR to use technology as it can be another form of communication between clients and employees. A major concern to HR professional is the increasing cost of health care coverage for employees in which HR personnel must determine the amount of benefits given to them. The following table shows the industries employing the most amount of HR professionals (Government of Canada, 2010). Table 1: Industries Hiring HR Professionals Industry / Sector Public administration Professional, scientific and technical services Other services (except public administration) Finance and insurance Manufacturing % 26.40 14.50 12.30 9.30 8.40 Statistic Canada shows that in 2006, 6% of people in the occupation of Human Resource are selfemployed and in 2009 it has increased to 36%. This increase is mainly due to the fact that many business organizations are outsourcing their human resource capabilities. There are older people (age 35 to 55) working in this industry, and there are more females than males in this occupation (Statistics Canada, 2007). As the population of HR professional age, more of them will retire (Schramm, 2004). This means that there will be a potential labor shortage in HR. Thus, getting a job in HR in the next 5 years would not be difficult. Primary Research of Human...
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...NBER WORKING PAPER SERIES THE U.S. HEALTH CARE SYSTEM AND LABOR MARKETS Brigitte C. Madrian Working Paper 11980 http://www.nber.org/papers/w11980 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 January 2006 Written for the Federal Reserve Bank of Boston 50th Economic Conference, “Wanting It All: The Challenge of Reforming the U.S. Health Care System,” June 15-17, 2005, Chatham, MA. This paper draws quite extensively on three previously written papers: “Health Insurance Portability, Labor Supply, and Job Mobility,” July 2004, written for the Inter-American Conference on Social Security; “Health Insurance and the Labor Market,” in Huizhong Zhou, ed., The Political Economy of Health Care Reforms (Kalamazoo, MI: Upjohn Institute for Employment Research, 2001), and “Health, Health Insurance and the Labor Market” (with Janet Currie) in Orley Ashenfelter and David Card, eds., Handbook of Labor Economics, Volume 3 (Amsterdam: Elsevier-North Holland, 1999). The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research. ©2006 by Brigitte C. Madrian. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. The U.S. Health Care System and Labor Markets Brigitte C. Madrian NBER Working Paper No. 11980 January 2006 JEL No. I10, J3, J6 ABSTRACT ...
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...Canada. Other discount retailers such as Canadian-owned Zellers, have been hurt by Wal-Mart’s formidable rise. Wal-Mart employs a low cost provider strategy, as evidenced by their slogan “We sell for less, every day”. They sell goods at low prices, but often of poor quality. Prices are kept low by developing special relationships with suppliers, employing many part-time workers, resisting attempts by their workforce to unionize and controlling labour costs, which includes “discouragement” of working overtime. Wal-Mart founder Sam Walton once said in an interview, “I pay low wages. I can take advantage of that. Were going to be successful, but the basis is a very low wage, low benefit model of employment.” A number of Wal-Mart’s business tactics have been under fire by special interest groups and labour unions. In 2005, a store in Jonquiere, Quebec, was closed after workers came close to establishing a union. It would have been the chain’s first. While a spokesperson for Wal-Mart Canada cited profitability concerns, labour leaders decried the store closing as an example of Wal-Mart’s fierce opposition to unions. Wal-Mart has an extremely high employee turnover rate. Approximately 70% of its part-time workforce leave within the first year. In Canada, the wages of Wal-Mart employees with five or more years of experience are, on average, $1 to $2 dollars less per hour...
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...Importance of the Society With the establishment of the American Pomological Society, a new era dawned on the science of fruit culture on this continent. The spirit that animated Van Mons, Knight, Noisette, Esperen, Bivort, and other savants of Europe, reached our shore and spread its benign influence across our continent; and wherever the school, the church, or the foot of American civilization has found a home, there our fruit-culture has been seen to follow as the handmaid of refinement, health and domestic comfort. This enterprise has now awakened a zeal through our borders which was never before known in the annals of pomologieal science. Strange, indeed, that it should be left for us of this new world to establish the first great National Society for its promotion - a society which embraces in its organization the largest area and the most varied climate and soil of the globe, where almost all fruits may be grown with success. The progress of fruit culture in our land is indeed wonderful. To encourage this by a cordial spirit of intercourse, to elicit and disseminate correct information in regard to the fruits of our vast territory, and to direct, control and advance this most important branch of terraculture, were the objects in view; and thus to establish a pomology for America which shall endure long after its founders shall have passed from the earth. Few are aware of the powerful influences which this association has exerted and is exercising on the pomology of our...
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...|1. | | | |Use the information below to answer the following question(s). | | |Wood Manufacturing is a small textile manufacturer using machine-hours as the single, plant-wide predetermined cost driver rate to | | |allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the | | |coming year for the company and for the Winfield High School band jacket job: | | | | | |Company | | |Winfield High School Job | | | | | |Direct materials | | |$40,000 ...
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...An example of an autobiographical essay/personal narrative [Written by a student in the Labour Studies program, used with permission] My name is Carlo, and I was born in June, 1958, in Italy. Our family, made up of my mother, father, and a brother, emigrated to Noranda, Quebec, when I was five years old. I encountered my first, but not last, taste of racism when kids in the neighbourhood laughed at my poor command of English. As fast as I could I learned not only English, but French as well. I became trilingual, speaking fluent French and English, as well as Italian. In the process, I made new friends from a lot of different cultural backgrounds. We then moved to Toronto, Ontario, where my Dad got work in a rubber factory. From my earliest days, I knew our family had to struggle for every penny. My Mom baked pizza which my brother sold by the slice, door to door. I caddied at the local golf courses and brought home all the money that I made. I hated it when other kids made fun of working people, like garbage collectors, who cleaned up trash for a living. When I was in grade six, I was ill in hospital for two months with a kidney infection, and it changed my whole life. I seriously took up playing guitar. I began to do photography, and joined the audiovisual club. I discovered I was artistic with an interest in graphic art, although I didn’t always agree with the kind of art assignments the teacher gave us. However, I had no idea what to do after high school graduation...
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...Task Statements: Human Resource Receptionist Student Name | Sheila Humphrey | What action is being performed (verb) | To whom/what is the action directed (receiver of the verb) | How is the action performed (procedure, tools, equipment) | Why is action performed (purpose) | Disseminate mail | Incoming mail | Recieve delivery from Mail room | Disburse mail to the appropriate employees | Schedule appointments | Schedule appointments for employees and new hires | Schedule appointments in outlook | Schedule meeting for staff and new hires. | Corresponding | Incoming inquires | Use of word and excel | Initiate responses to incoming inquiries | Answer Phones | Incoming calls | Switchboard | Forward to appropriate employee | Greeting | Incoming clients/employees | Front desk | To ensure hospitality at the front desk | Filing | Employee files and incoming correspondence | Files/filing system | The ability to file and retrieve files as needed in current filing system. | | | | | | | | | | | | | | | | | Task Statements 1 | Receive and disburse incoming mail to the appropriate employees. | 2 | Schedule appointments for employees and new hires | 3 | Correspond with the income inquires | 4 | Answering the phones and directing calls to the appropriate employee. | 5 | Receive incoming person with hospitality | 6 | File personal files and incoming correspondence | 7 | | 8 | | KSA Statements: Human Resource Receptionist Student...
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...Glencore’s bad international practices Amine Lakhdar Texas A&M University - Commerce Glencore’s bad international practices As the world is enduring a serious financial crisis, big businesses have been challenged as never before. Protesters have been demanding a fairer form of capitalism. People want more socially responsible companies and genuinely popular capitalism. The case discusses one of the world’s most powerful conglomerates in the world which is Glencore. As it was recently introduced in London Stock Exchange, Glencore was questioned about its international practices. It is a commodity giant specialized in raw materials. The multi-billion dollar commodity giant is accused of profiting from child labor in several mining exploitation in the Congo, moreover, claims say that it is paying the associates of paramilitary killers in Colombia. An investigation proves that children as young as ten are working in the Glencore-owned mining concession and some confidential documents show a Glencore subsidiary made payments to the suspected associates of paramilitary in Colombia. In the Congo, while international law prohibits anyone under 18 working in a mine, many of the miners were under the legal age. Although Glencore says it stopped operating in the mine since 2008, because of the collapse in the price of copper, it still owns the concession. Glencore chief executive Ivan Glasenberg said the mine had been taken over by local workers without its permission. He said...
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...How Professional Knowledge and Abilities Effect Career Success Gen/200 August 23, 2011 It’s very important as a professional in a working environment to develop the necessary skills needed to do their job efficiently and effectively. One must understand that without the required skills and the willingness to learn new skills may hinder their opportunity for future growth within a company as well as their career. With the resources available today, no one could not take his or her knowledge and career to the next level. Resources such as schools, workshops, Internet and even professional organizations and associations are available to help every professional in all walks of professions around the world. The International Association for Human Resources Information Management (IHRIM) is an example of a professional organization that can help further the career of someone in that line of work. The organization was founded in 1980 when HR and IT professionals found themselves needing a mediator. They are currently an international organization providing services such as training and certification programs, job searches and a plethora of networking opportunities for other IT and HR professionals around the globe. They also conduct seminars and forums across the globe for information and retraining purposes, provide publications for references and even a buyer’s guide for human resources programs, software, and products. Because this organization offers many resources...
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...Chapter 5 COLLECTIVE BARGAINING: LEVELS AND COVERAGE* A. INTRODUCTION AND MAIN FINDINGS Industrial relations systems, operating at national, sectoral and local levels, play an important role in determining economic and labour market performance. They constitute a “web of rules” relating economic agents who, while pursuing their self-interests, generally find it beneficial to reach a degree of consent and some form of (more or less conflictual) co-operation. In providing procedures for consensus-building and conflict resolution, these arrangcments are shaped by specific national legislation and labour market conditions, and by each country’s prevailing attitudes towards work, conflict and co-operation. There are many ways to analyse systems of labour relations in OECD countries. For example, Chapter 4 of the 1991 Employment Outlook examined trade union density (the proportion of workers who are union members), and noted widely differing rates of unionisation across countries, ranging from around 10 per cent in France to over 80 per cent in Sweden. Union density is just one indicator of the character of a country’s industrial relations system. The extent to which employees are covered by collectivc agrccments concluded at various levels - national, regional, sectoral or company - is another important feature of the system by which wages and other employment conditions are set. In many countriec, workers who are not union members are in fact - through extension and enlargement...
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...Human Resource Management Alex Renteria Mgmt. 201 5/19/2011 Kent Troxell Human Resource Management Human resources is an expression used to describe the individuals who construct up the workforce of an organization, although it is also pertained in labor economics as well, for example, business segments or even whole nations. Human resources is also the name of the occupation within an organization charged with the overall responsibility for implementing strategies and policies concerning to the management of individuals (i.e. the human resources). This function title is often abbreviated to the initials "HR". Human resources are a relatively modern management term, coined as late as the 1960s. The origins of the function ascended in organizations that introduced 'welfare management' practices and also in those that adopted the principles of 'scientific management'. From these relationships emerged a fundamentally administrative management activity, coordinating an assortment of worker related processes and becoming known, in time, as the 'personnel function'. Human resources progressively became the more everyday name for this function, in the first instance in the United States as well as multinational or international corporations, reflecting the adoption of a more quantitative as well as strategic approach to workforce management, demanded by corporate management to gain a competitive advantage, utilizing limited skilled and highly skilled...
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...Britain that led to the swing of leadership from a more capitalist based party to a more socialist based party. The people of Britain were haunted by the 1930s, a world in which “seldom the all-importance of food is recognized. You see statues everywhere to politicians, poets, bishops, but none to cooks or bacon-curers or market gardeners”, as described by Orwell. A time in which the poor were overlooked and undermined, a land in which the people “bred in the slums can imagine nothing but the slums.” Why was Churchill, being the national hero that he was, rejected by the Britons? Was it the failure of the Conservatives, which gave rise to Labour; or was it the rise of Labour which led to the failure of the Conservatives? These are some key aspects that this essay will attempt to consider. This paper will focus on how the rise of Labour, through their efforts locally, won over the population in order achieve a significant victory. Conducive to that change in leadership was the lack of Tory focus on social-policy and attention towards the working-class, which emanated from the lack of party politicking on the part of Churchill himself. Churchill was the leader of the Conservative Party, who governed the country in 1940. The Conservative Party is essentially a capitalist based polity; they are very much opposed to the idea of socialism. However, in 1939 Britain goes to war for the second time in just after two decades. It is a difficult period, so for the sake of national...
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