Herzberg’s Two-Factor Theory

 

The two-factor theory suggests that there are a number of factors that affect either job satisfaction or dissatisfaction and these cannot be measured using the same continuum. It is based on a literature review that was conducted on literature from 1900 to 1955 involving issues concerning job satisfaction and dissatisfaction and the reasons behind them. This theory was also developed in the 1950s; a time when there was full employment in the United States, with most factories or manufacturing plants working fulltime. These circumstances were highly instrumental in the development of a perspective concerning job satisfaction and dissatisfaction because it involved a situation where there was considerable unionization, which is in contrast to the current job situation, where there is a high unemployment rate and a considerable reduction in unionization. Among the most significant findings of this theory is that there is a relationship between job satisfaction and the productivity of employees. In addition, the characteristics of dissatisfaction among workers are well documented in the literature that was reviewed. Furthermore, the attitudes related to work has also been well defined in the literature; a sign that there had been extensive research on the subject over the decades. The theory suggests that while there are a considerable number of factors that might bring about the development of dissatisfaction among employees, there are only a few factors that can lead to the advancement of job satisfaction.

These conclusions are based on two hypotheses that seek to advance an understanding of job satisfaction and dissatisfaction. The first of these is that the “…factors leading to positive attitudes and those leading to negative attitudes will differ.” The second hypothesis suggests that there are “…factors and effects involved in long-range sequences of events would differ from those in short-range sequences.” Through a study of a number of engineers and accountants, there was an attempt to understand their level of job satisfaction. One of the most significant findings was that while salaries were considered an important dissatisfier, there were instances where it was appreciated, especially in situations where it involved a reward for a job well done. Hygiene factors were considered to have a significant effect on satisfaction, with a large number of those interviewed stating that good hygiene had a positive effect on the performance of individuals in the workplace. Therefore, when the hygiene needs of employees are satisfied, it becomes possible to ensure that there is the advancement of a reduction of dissatisfaction and poor performance. According to Herzberg, it is essential for jobs to be restructured in such a way that ensures the advancement of the ability of workers to achieve their maximum productivity. Motivational factors have to be employed in order to bring about job satisfaction, and this should be done with recognition of the role of the supervisor in the work environment. Finally, there is need to ensure that workers are supposed to be allowed an opportunity to determine how best to achieve their work goals, and this is in order to complement the role of supervisors in organizing and planning how work is to be conducted.

Social Learning Theory

According to the social learning theory, learning is a process that takes place cognitively within a social context. Individuals tend to adopt those behaviors that they observe through social interactions to such an extent that even though they might be through to be disgusting or not of good taste, these individuals end up behaving in a particular way. In this case, learning a behavior can occur through observation and the extraction of information from that observation which is used by the observer to make decisions concerning his future behavior. The result is that a significant number of individuals end up undertaking or participating in behaviors that they would normally not participate in because of the influence of other individuals within their social context. Thus, cognition, environment, and behavior all play a role in determining how an individual is likely to react to stimuli in such a way that promotes the idea that they will be able to fit in with those individuals who are in their social context (Grusec, 1992). Therefore, despite individuals disliking certain behaviors at first, such as smoking cigarettes, they condition themselves to like these behaviors to such an extent that they end up doing them unconsciously. The inability of these individuals to control their behaviors comes about because they learn and develop these attributes without any observable change in their behavior. This is highly significant because it shows that some of the behaviors that are displayed by individuals, such as smoking or drinking coffee are acquired behaviors rather than natural ones.

References

Grusec, J. (1992). Social learning theory and developmental psychology: The legacies of Robert Sears and Albert Bandura. Developmental Psychology, 28(5), 776–786.

Operation Management at Costco

The management of the operations within an organization is extremely essential in bringing about its success. This is especially the case considering that for the most part, organizations in the business world are increasingly getting involved in competition with each other in order to remain competitive. Costco is one of the organizations that seek to bring about the best quality in their services through making sure that its employees are satisfied and this is achieved through the advancement of their interests both within and outside the company. In this way, Costco has been able to develop a good reputation based on its need to promote its image through its employees while at the same time providing the best services possible to its customers.

One of the most fundamental aspects of Costco’s operations is that is seeks to promote the efficiency of their employees. This is especially considering that it seeks to create an environment within which its employees are able to do their best for the sake of the company through the advancement of their interests within it. A good working environment where employees are provided with free reign on how to handle customers on a more personalized basis has made it possible for employees to feel empowered in their work. Taking competitive advantage into consideration is another aspect of management that can ensure Costco’s success (Heizer and Render 71). This has been achieved through the provision of benefits and higher wages to employees for the sake of advancing their quality of life which has in turn made them more loyal to the company. The result is that Costco has allowed for the advancement of its workforce in a manner that brings about the best in them for the sake of promoting its own interests in the market. Moreover, the empowerment of employees can also be considered to be a sound strategy especially considering that other companies tend to deny their employees the right to do what they think is best for the sake of promoting the products that they are selling. The result is that there is a loss of morale among employees who come to believe that they are not valued enough by management to independently bring in customers. This is not the case with Costco which has put employee empowerment at the forefront of its strategy because it has made employees the biggest promoters of its image.

Another aspect of Costco’s operations that can be considered to be important to its success is employment stability. This has been achieved through the promotion of benefits for its employees which include job security as well as benefits in case of disability as well as when suffering from any ailments (Heizer and Render 435). This is an extremely sound strategy because it ensures that employees are completely focused on their work instead of seeking more stable work elsewhere. Works schedules that put into consideration the need to take case of the welfare of employees have also been put in place. This, in addition to the higher wages that they receive when compared to rival companies, has allowed for an increase in motivation to work among employees to such an extent that they give their best to their work. The various constraints to its human resource strategy, such as the need to control the expenditure that it places on its employees when compared to other companies, have been smoothed over by Costco through its making sure that the potential financial problems it might face are outweighed by its excellent performance in the market. This has been to such an extent that a significant number of employees have ended up doing their best in their work in the comfort of knowledge that they will be compensated.

Healthcare benefits are some of the most important aspects of the success of any company because the more generous they are, the more likely that employees will be motivated to increase their performance. This is a lesson that Costco’s management seems to have taken to heart because it has provided extremely generous medical and dental benefits to its employees that have allowed for the advancement of the health of these individuals. Moreover, the extension of these benefits to dependents has made it possible for individuals that work at Costco to increase their output because of the motivation that they have based on the belief that the company cares for their welfare and that of their loved ones. The generous benefits that the Costco has advanced its employees are essential because it has become a major contributor to the success of its operations. The generous incentive system that has been put in place by the company is important because it allows employees to be self-directed in their work (Heizer and Render 438). This means that they are better able to make sure that they work with minimal supervision, which helps the company save both time and money when it comes to dealing with issues concerning employs. Thus, productivity remains high while at the same time making sure that the interests of employees are secured in a manner that advances the interests of the company.

By competing through the advancement of its employees’ interests, Costco has the potential of attracting some of the best individuals in the industry to work for it. The pro-employee policies that it has adopted can be considered to be essential for promoting not only its image as a viable employer, but also shows potential employees that unlike its rivals, it is a generous employer. In this way, it becomes possible to make sure that there is a large pool of potential employees to choose from when the time comes for recruitment. However, while it has the best possible number of potential recruits, there is need for the company to make sure that it only employs those individuals who display the highest ethical standards possible (Heizer and Render 455). This is because when companies in the contemporary world conduct their operations, it is essential for them to observe ethics at all fronts or risk ending up getting their reputations damaged and in turn ending up losing their market share. Therefore, in order to make sure that all operations run smoothly, it is important that Costco, when staffing its operations, is able to advance the highest ethical standards possible so that it can maintain and advance its market share. It is important for there to be an effort to observe ethical standards while at the same time promoting continuous improvement because it is one of the most fundamental ways through which employee commitment to the company can be ensured while at the same time promoting the competitiveness of the company in a way that allows for the creation of better market opportunities than it already possesses.

In conclusion, it is essential for Costco to make sure that it continues to promote the interests of its employees through providing them with incentive packages as well as better working conditions than its competitors. This is one of the most fundamental ways through which it will be able to continue performing well in the market while at the same time attracting the best talent possible to help run its operations. Making employees the center of its operations management is essential because it is these who are the driving force behind their success while at the same time advancing the good name of the company through their efforts to make it a success. It is, therefore, essential for the interests of employees to be protected as a means of making sure that there is a proper means through which operations can be advanced without any glitches as a result of lack of motivation.

Work Cited

Heizer, Jay and Render, Barry. Operations Management: Sustainability and Supply Chain Management. 11th Edition. New York: Pearson, 2013.

Khashoggi: Bots feed Saudi support after disappearance By Chris Bell and Alistair Coleman

Suspected bot accounts are attempting to shape the social media narrative following the disappearance of Saudi journalist Jamal Khashoggi.

Arabic hashtags expressing support for de facto Saudi leader Crown Prince Mohammed Bin Salman, condemning news organisation Al Jazeera and urging users to "unfollow enemies of the nation" were among those amplified by the involvement of bot networks alongside genuine users.

Twitter has suspended a number of bot accounts.

Mr Khashoggi is missing, presumed dead, after he was seen entering the Saudi consulate in Istanbul on 2 October.

Turkish officials allege the journalist, who had been critical of the Saudi regime, was killed there.

On 14 October, the Arabic hashtag translating as "we all have trust in Mohammed Bin Salman" was among the top global trends, featuring in 250,000 tweets. Additionally, "We have to stand by our leader" was used more than 60,000 times.

On Wednesday, a hashtag translating as "unfollow enemies of the nation" was also highly used, while in the past 24 hours the term "campaign to close Al Jazeera, the channel of deception" has gained traction, used close to 100,000 times on the social network.

Bot networks were used by both sides in an effort to control the conversation on social media during the crisis.

Ben Nimmo, Information Defence Fellow at the Atlantic Council, analysed one of the Arabic-language hashtags with bot involvement.

"Unfollow enemies of the nation" was used in excess of 100,000 times. The vast majority of that came through retweets, which can be a signal of bot activity.

Accounts which had been dormant for a long time were suddenly tweeting again, posting identical or near-identical material to other suspicious accounts.

Others were newly-created or exhibited other characteristics typical of bot accounts.

Attempts to control and manipulate social media conversations have become an increasingly prominent global issue.

On Wednesday, Twitter published more than 10 million tweets from suspected state-backed Russian and Iranian "troll farms".

While US national security chiefs have warned of "a pervasive messaging campaign by Russia to weaken and divide the US".

The New World: How it is perceived

Colin Calloway’s approach to the concept of the new world is one which differs from traditional views. This is mainly because, instead of focusing mainly on the European context, he creates a balanced focus on the manner through which Native Americans and European settlers were able to interact and create a vibrant new culture. For the most part, traditional conceptions of the new world tend to attribute the establishment of history as well as organized society to European settlers and often disregards the Native Americans as being individuals who lacked history because none of their histories was written, but instead transmitted orally. As a result, the history of the new world has come to be recorded from the time of European settlement and the contribution of the Native Americans to the development of the new society have been totally forgotten because of the Eurocentric view of them as being savages. However, Calloway is able to bring together the histories of both European settlers and Native Americans in such a way that promotes the idea of their having interacted and each having affected the lives of the other. The American culture, according to Calloway, did not just come up as a result of European settlement, and instead, it came about because both Europeans and Native Americans made their contributions to it; bringing about a unique culture that has become dominant in the whole country. Thus, Calloway considers Native Americans to have been advanced enough both socially and culturally to have an influence on the Europeans who ended up settling amongst them; in contrast to the traditional meaning of the new world.

One of the most significant aspects of the interactions between European settlers and Native Americans, covered by Calloway, is that it led to the spread of diseases that were prevalent in Europe into Native American populations. The spread of these diseases was not done intentionally, but instead, it came about as a result of the interaction between a small number of Native Americans and settlers, mainly through trade (Calloway, 2013, p.50). These diseases were most prevalent in trade routes and this is the main reason why the first people to get infected were often the Native Americans who lived close to these routes or in whose settlements Europeans travelled through. These individuals would in turn, as a result of other Native Americans further into the interior, end up infecting the latter; thus resulting in massive deaths from diseases which traditional Native medicine could not cure. The large number of Native Americans throughout the Americas who ended up dying did not do so because of direct interactions with European settlers, because a majority of them had not set eyes on a European before (Calloway, 2013, p.50). Instead, the diseases spread because of interactions between those Native Americans who had interacted with Europeans, and those who had not. The depopulation of some areas which came about as a result can be considered to be based, not on malice on the part of European settlers, but on the ignorance between the latter and the Native Americans concerning the dangers of European diseases. In this way, Calloway seems to blame disease, rather than the violent interactions between Europeans and Native Americans in the form of wars that would come up in later years, as the case of the loss of large populations of Native Americans.

According to Calloway, the peaceful interactions that took place between the Native Americans and European settlers tended to be based on the self-interest of the latter. This is because in their settlement of a new land, of which they were unfamiliar, they needed the Native Americans more than the Native Americans needed them (Calloway, 2013, p.53). Europeans considered Native Americans to be potential trade partners, and they actively sought to establish trade links aimed at bringing the latter into the economic system that had been established by the Europeans. Furthermore, European missionaries were eager to convert Native Americans to Christianity and these often sought to ensure that this objective was accomplished by going directly to their villages and ministering to them (Calloway, 2013, p.53). The result was that there was a significant growth of contact between these populations to such an extent that they were able to achieve a high level of cultural exchange. Thus, while some Europeans went to settle among the Native Americans, and even adopted some of their customs, some of the latter also chose to discard their own lifestyles and settle among Europeans. In this way, such scenarios as Europeans having tattooed their faces like Native Americans and Native Americans drinking tea became quite common. The creation of a hybrid society which involved the adoption of elements of both European and Native American cultures took place. Through the analysis that he makes concerning the interactions between Native Americans and Europeans, Calloway ensures that he disputes the prevalent narrative about the often hostile interactions between the settlers and the natives, and instead brings out a more positive outlook of these interactions.

Jill Lapore explores the concept of literacy and the means of transmitting history in the context of the new world. She states that the history of Native Americans has been for the most part disregarded because they did not maintain written records (Lapore, 1994). This disregard began to take place during the early European settlement of the Americas and has continued to the twenty first century where written records are considered to be the means through which history can be recorded. However, the disregard of Native American history does not take into account the fact that unlike European history, which was written down, Native American history, was kept through oral tradition. These oral traditions have instead come to be regarded as myths because there are no contemporary written records to verify their authenticity. Lapore points out that in the seventeenth century, there were a significant number of literate Native Americans who lived in European settlements and who could have written the oral histories of their people (Lapore, 1994). However, not record is made of any attempt having been made to put down these histories. Lapore suggests that the main reason behind this lack of written history of the Native Americans is that in order to achieve literacy, Native Americans were required to completely discard the traditions of their own people and instead adopt the Europeans lifestyle. This meant having to adopt Christianity, speak English, and live in European settlements. The result was that many of these individuals ended up losing touch with their own people; instead living at the periphery of Native Americans and Europeans since they were no longer fully accepted by either (Lapore, 1994). These individuals could therefore not write down the oral histories of their people for fear of being rejected by the Europeans whose culture they had adopted.

Another aspect of Native American and European interaction is discussed by William Cronon who considers this interaction from the European standpoint. For most Europeans who settled in the new world, the vastness of the land and its wilderness was incomprehensible because in Europe most of the land had been utilized and the wilderness that remained was in private hands (Cronon, 2003, p.33). When they considered the Native Americans and the simple life that they led surrounded by such abundance, they came to believe that the Native Americans were lazy. Furthermore, this concept of laziness was further enhanced because it was the women, rather than the men in Native American communities who farmed while the men hunted. In Europe, it was the men’s task to farm the land; enforcing the belief that Native American men were lazy. Cronon points out that these perceptions by Europeans were wrong because Native American societies were organized differently. Native Americans often sought to use the land according to their own needs rather than using it abundantly in order to create a surplus, the way the Europeans did (Cronon, 2003, p.122). Additionally, they often sought to make sure that they utilized what they had effectively, especially in winter months when, in situations where there was impending scarcity, these people tended to choose to go hungry in order to utilize the remaining food for as long as possible. These were customs that Europeans failed to understand and would make them enforce their dominance in society in a bid to promote their own way of life, which they thought was superior.

The common perceptions concerning American history, especially its origins, should be changed. This is because despite eventual European dominance over America, American history was not made up only by the European settlers. Instead, Native Americans also made significant contributions while they too were influenced by European culture. American history can be considered as an amalgamation of these two distinct cultures, which brought about a new culture that was adapted to a new environment as a result of interactions between Native Americans and Europeans. A full understanding of American history cannot be achieved without the inclusion of the peaceful interactions that took place between Native Americans and Europeans, because the contributions of the former is one of the main factors that brought about the success of settlements, which in turn brought about American history.

References

Calloway, C.G. (2013). New Worlds for All: Indians, Europeans, and the Remaking of Early America. Boston: Johns Hopkins University Press.

Cronon, W. (2003). Changes in the Land: Indians, Colonists, and the Ecology of New England. New York: Hill and Wang, 2003.

Lapore, J. (1994). Dead Men Tell No Tales: John Sassamon and the Fatal Consequences of Literacy. American Quarterly, 46(4): 497 – 512.

Cuba: What everyone needs to know

The Cuban starter pack

It has, over the years, become necessary to paint a vivid picture of Cuba from the time when it was still a Spanish colony through to the twenty first century and the struggles which this country and people have had to undergo in order to reach where they are today. It is necessary to use the format of asking questions and coming up with suitable answers to these questions so that a clearer picture of the true history of Cuba, without the bias which it has had to endure from some American writers. The discussion of the early liberation struggles of the people of this country against colonialism, first against Spain, and later against the United States, after the latter was awarded Cuba after winning its war against Spain is also necessary. Cuba had to suffer from decades during which the country was ruled by American backed dictators who suppressed the country’s interests in favor of their sponsors, mainly the United States and companies from this country. It is essential that a clear picture of how Cuba had to suffer land alienation as almost two thirds of the country’s land was either in the hands of private owners from the United States or in that of American corporations.

The events leading to the revolution and the American response to it that led this country to move into the Soviet sphere of influence are a direct result of American policy. The reasons for the success of the revolution despite the fact that it was often challenged by its more powerful neighbor to the north is that the revolution has proven its resilience. In addition, it is pertinent that a criticism of the American policies on Cuba after the revolution and suggestions of what the former could have done differently to ensure that it remained influential within Cuba. The six decades of the revolution should also discussed and this is coupled with a discussion of the circumstances that have ensured its survival to the present and the reasons why it did not collapse as soon as the Soviet Union, which was its main backer, did. One of the most fascinating factors concerning the Cuban revolution is the smooth transition of power from Fidel Castro to his brother Raul, and how the latter has presided over the liberalization of the economy so that the country can not only remain competitive on the world scene, but also for the benefit of the Cuban people.

Cuba: the land of contrast

The revolution has played an immense part in the development of the the people of Cuba since not only their standards of living but also their society changed for the better after the revolution. The revolution has ensured that the Cuban people are aware of each other’s equality and because of this, then they have to treat each other well, like a part of a greater family. This positive attitude towards each other it has enabled all workers within the Cuban economy to concentrate more on service for the greater good of all Cubans, than to work for personal gain. One of the firmest principles which the revolution has instilled among the Cubans is that working for the people of Cuba is the most valuable thing because it is what will determine whether the revolution is eventually judged as being either a success or a failure. It is through the revolution that the Cubans became, for the first time, a united nation which was not divided by class or by interference from foreign countries such as the United States. It is only after the revolution that the Cubans came to identify their country as their own and this has created a strong nationalist feeling among them that is hard to match anywhere else in the world. The fact that the revolution has managed to survive for this long can be attributed in part to the strong sense of ownership that the Cubans have towards the revolution.

One of the legacies of the revolution is that of the achievement of literacy for all Cubans and because of this, Cuba is currently the only country in the world which has achieved a hundred percent literacy for all its citizens and all Cubans of any age have at least a basic education, a feat which even the United States, a long term rival of the revolution, has yet to achieve. The revolution has encouraged the equal opportunity among men and women throughout the economy and this has been because of the belief that these two genders have equal capabilities to function at work. There is hardly any task which is designated to one gender that cannot be undertaken by the other. Furthermore, it has ensured that there is a balance between the employment of men and women in the workplace, hence ensuring that gender balance has been achieved. Cuba is the only state in the world to achieve an almost perfect gender balance, and in addition to the total literacy rate, the Cuban revolution has not only achieved universal healthcare for all its people, but it has also been able to develop one of the best medical healthcare systems in the world, another feat that it has accomplished without the advantages other countries have and despite the American attempts to stifle the revolution through the imposition of the trade embargo. The resilience of the Cuban revolution has also been able to raise the image of its leader, Fidel Castro, who is looked upon as a larger than life personality and who has been a thorn in the side of the United States for over five decades.

The United States has, from the very beginning of the revolution, been the biggest enemy of Cuba and it has, time and time again, tried to overthrow the revolution and replace it with a corrupt capitalistic system like the one which existed before. According to the book, the United States is the biggest threat to the achievements of life which the new order after the revolution has brought for the Cuban people. There has always been a possibility that the United States may foment revolt against the revolution by promising a few Cubans a better life to the one which they currently have, an action which would more likely than not destroy the achievements that have been made by Cuba so far. The obsession with Cuba which has been displayed by successive American administrations shows just how potent the revolution has become and this has been the main reason for the imposition of the trade embargo over this country. The irrational fear of the Cuban revolution by the United States government and the policies which have been adopted against it have ensured that this island nation has not had the opportunity to develop its potential to the fullest. However, despite the hostility from the United States, the Cuban revolution was able to have a lot of influence on the world scene as seen in its involvement in the protection of the government of the newly independent African country of Angola from Apartheid sponsored rebels.

Cuba was able to send more than thirty thousand troops to aid the ailing African nationalist government and it is partially because of this action that part of the military power of the oppressive Apartheid South African regime was destroyed. Furthermore, the Cuban revolution attempted to aid other countries such as Congo and Bolivia in their bid to have their own revolutions, although the latter was not successful. The book comes to the conclusion that the United States has for a long time been unfair towards the revolution through its policies and expresses the desire for better relations with Cuba especially during the Obama administration.

Governance Networks

Within the last decades of the twentieth century, the concept of governance developed within political studies and the fields related to it. This concept is one that seeks to promote the idea that there is a wide variety of approaches that are required to make sure that there is an understanding of the world and the changing nature of the role of the state within the international system. Furthermore, there is the rise of the belief that governance can be used to promote the idea that the contemporary world is where individuals live in a world where there are a diversity of coexisting networks that are aimed at safeguarding the lives of individuals as well as society in general (Bush, Oosterveer, Bailey, & Mol, 2015). These networks have developed in such a way that ensures that there is the creation of a better understanding of the massive urbanization, globalization, and a diversity of other societal demands that have come about because of the considerable participation of the civil society in everyday life (Fung, 2015). This new knowledge is essential in bringing about an understanding of the way that the world is developing because it allows for the inclusion of the manner that new concepts such as the participation of the civic society has been able to establish a strong public voice in decision making. In this paper, there will be a discussion and analysis of the concept of the governance network and the manner through which it has been able to affect the world.

One of the most significant aspects of the governance network is that it has led to the argument that societies are increasingly becoming fragmented. This is mainly because of the belief that the new demands that are being made on governments has led them towards a shift from the more traditional bureaucratic order to one that is more responsive to the demands of society (Wiesel & Modell, 2014). Such interactive governments have the potential of leading towards the fragmentation of society because it involves a process where there is greater devolution of power in such a way that promotes the achievement of more efficiency when it comes to service delivery. Governance networks have also become critical when it comes to policymaking because the individuals involved in the latter tend to consult with the diverse stakeholders in society before any decisions are made (Bovaird, Stoker, Jones, Loeffler, & Pinilla Roncancio, 2016). The arbitrary decision making processes that was an essential aspect of the bureaucratic forms of government are increasingly being abandoned in favour of more open ones where there is need to seek to achieve the approval of stakeholders before policies are implemented (Denis, Ferlie, & Van Gestel, 2015; Greve, 2015). Furthermore, there has also been an increasing role of the private sector in those aspects of government that were previously the strict domain of the public sector (O'Toole, 2015). Thus, governance networks have become essential means through which to bring about a form of governmental devolution that seeks to enhance service delivery in the most efficient way possible while at the same time reducing the role of government in the process. It has also ensured that the role of government in society has essentially become blurred because the institutions involved in service delivery have their roles increasingly being taken by more specialized entities from the private sector.

The latter collaborative arrangements have made it possible for governments to undertake their tasks in a manner that is more supervisory than active. Governance networks have ensured that there is an increase in the proliferation of governance arrangements either with the private sector or other governments with the aim of bringing about a more efficient achievement of goals (Page, Stone, Bryson, & Crosby, 2015). This is especially the case considering that there are some governance networks which have developed between a local government, other governments, as well as the private sector with the aim of seeking to achieve the best possible results when it comes to undertaking their functions. These new collaborations have essentially made it possible for governance networks to become more common in the contemporary world to such an extent that they have become the norm. It is currently normal for individuals to expect that network arrangements will bring them the services that they need without a complete reliance on their governments to provide the services (Vangen, Hayes, & Cornforth, 2015). Governments have ended up becoming facilitators and guarantors rather than the actual providers of services; meaning that there has developed a necessity that there is the establishment of newer networks to increase efficiency. It has also become possible for a new layer of governance to appear within local governments, with these layers playing a significant role when it comes to the development of strong initiatives aimed at enhancing efficiency while at the same time reducing the role of government (Kapucu, Hu, & Khosa, 2017). The various stakeholders in society have also come to have a say in the management of their own governments and how services are delivered. However, despite this being the case, it is essential to approach governance networks with caution because despite their being widespread, they have not been as widely adopted as expected.

Governance networks have brought about a greater understanding of the role that networks can play in enhancing the role of governments. This is because it involves an understanding of the manner through which the complexity of the multi-governmental landscape has become a necessity in the contemporary world (De Vries, Bekkers, & Tummers, 2016). It is necessary to consider that governance networks have essentially made it possible for there to be the creation of means through which to bring about the interaction between a diversity of actors in society in such a way that promotes the interests of all involved because there is devolution of functions (Borg, Toikka, & Primmer, 2015). Furthermore, it has become possible for these actors to come to terms with each other’s capabilities in such a way that helps to bring about the achievement of means through which to promote the diversification of functions towards the achievement of common goals. Thus, it can be argued that politicians and administrators have become the main actors when it comes to the promotion of societal interests and this has been in such a way that they have come to be seen as the guarantors of public services (Bryson, Crosby, & Bloomberg, 2014; Head & Alford, 2015). However, despite the achievement of this objective, it has become essential to consider that these individuals have gained considerable power over a diversity of functions. This is especially the case considering that these individuals might end up abusing their power to ensure that they serve the interests of their respective organizations or lobbies that sponsored them towards attaining their positions (Howlett & Ramesh, 2016). Therefore, there should be a process where there is the development of awareness concerning the relationships between the actors in various governance networks so that it can be possible to bring about the achievement of greater transparency in the processes that are undertaken.

The term governance network implies that there is a convergence when it comes to a diversity of issues concerning government and the manner through which it is operated. It is necessary to consider that this convergence is one that has taken place in order to meet the needs of society while at the same time promoting a situation where there is the achievement of common goals in as efficient a manner as possible (Lecy, Mergel, & Schmitz, 2014). While there has been considerable debate concerning what exactly governance networks mean, it is pertinent to consider that it is a reality in the contemporary world and has to be understood as such. A body of knowledge and concepts concerning governance networks has grown over the years and this has led to the establishment of means through which an understanding of the term can be understood. One of the most important factors concerning governance networks is that is involves a situation where service delivery and policy are developed and implemented through networks that involve actors that are essentially interdependent. The interdependency between the various actors can be considered to be an essential aspect of promoting the development of the networks that are involved in service delivery (Bryson, Crosby, & Stone, 2015). It is also necessary to stress that it is the actors who make choices concerning the strategies that they have to use in order to find and make solutions to various problems. There are also instances where there is a complexity of interactions and negotiating partners that come about because of the interdependencies that occur between actors (Skelcher & Smith, 2015). Therefore, the different governance networks tend to be quite diverse in their make up because each of them is developed to satisfy a large number of unique needs (Van den Hurk & Verhoest, 2015). The variety of perceptions and strategies that they have to implement requires that there is the achievement of unique problem solving, service delivery and policy implementation initiatives at all times to ensure efficiency.

In conclusion, the governance network approach is one that stresses the need to consider the outcomes of the implementation of different policies and service delivery. A consideration of the outcomes ensures that there are initiatives aimed at promoting the development of the most pertinent policies possible while at the same time including the most qualified actors to undertake the diverse tasks involved in bringing about the achievement of results. The development of an understanding of needs is critical for the creation of institutionalization of the relationships that come about between the different actors. These create patterns that are necessary for the promotion of effective working relationships between actors that make it possible to bring about strong service delivery initiatives. The relationships involved are those that ensure that there is the establishment of social networks that are necessary for not only bringing about better service delivery, but also ensures that there is the establishment of a basis upon which the various actors can work together in other networks. Finally, the relationships between the various actors ensures that there is the emergence of rules that promote the regulation of the behaviour within networks; making it possible for actors to explore new content that might enhance their efficiency while at the same time helping in enhancing the quality of services being delivered.

References

Borg, R., Toikka, A., & Primmer, E. (2015). Social capital and governance: a social network analysis of forest biodiversity collaboration in Central Finland. Forest Policy and Economics, 50, 90-97.

Bovaird, T., Stoker, G., Jones, T., Loeffler, E., & Pinilla Roncancio, M. (2016). Activating collective co-production of public services: influencing citizens to participate in complex governance mechanisms in the UK. International Review of Administrative Sciences, 82(1), 47-68.

Bryson, J. M., Crosby, B. C., & Bloomberg, L. (2014). Public value governance: Moving beyond traditional public administration and the new public management. Public administration review, 74(4), 445-456.

Bryson, J. M., Crosby, B. C., & Stone, M. M. (2015). Designing and implementing cross‐sector collaborations: Needed and challenging. Public administration review, 75(5), 647-663.

Bush, S. R., Oosterveer, P., Bailey, M., & Mol, A. P. (2015). Sustainability governance of chains and networks: a review and future outlook. Journal of Cleaner Production, 107, 8-19.

De Vries, H., Bekkers, V., & Tummers, L. (2016). Innovation in the public sector: A systematic review and future research agenda. Public Administration, 94(1), 146-166.

Denis, J. L., Ferlie, E., & Van Gestel, N. (2015). Understanding hybridity in public organizations. Public Administration, 93(2), 273-289.

Fung, A. (2015). Putting the public back into governance: The challenges of citizen participation and its future. Public administration review, 75(4), 513-522.

Greve, C. (2015). Ideas in public management reform for the 2010s. Digitalization, value creation and involvement. Public Organization Review, 15(1), 49-65.

Head, B. W., & Alford, J. (2015). Wicked problems: Implications for public policy and management. Administration & Society, 47(6), 711-739.

Howlett, M., & Ramesh, M. (2016). Achilles' heels of governance: Critical capacity deficits and their role in governance failures. Regulation & Governance, 10(4), 301-313.

Kapucu, N., Hu, Q., & Khosa, S. (2017). The state of network research in public administration. Administration & Society, 49(8), 1087-1120.

Lecy, J. D., Mergel, I. A., & Schmitz, H. P. (2014). Networks in public administration: current scholarship in review. Public Management Review, 16(5), 643-665.

O'Toole, L. J. (2015). Networks and networking: The public administrative agendas. Public administration review, 75(3), 361-371.

Page, S. B., Stone, M. M., Bryson, J. M., & Crosby, B. C. (2015). Public Value Creation by Cross‐Sector Collaborations: A Framework and Challenges of Assessment. Public Administration, 93(3), 715-732.

Skelcher, C., & Smith, S. R. (2015). Theorizing hybridity: Institutional logics, complex organizations, and actor identities: The case of nonprofits. Public Administration, 93(2), 433-448.

Van den Hurk, M., & Verhoest, K. (2015). The governance of public–private partnerships in sports infrastructure: Interfering complexities in Belgium. International Journal of Project Management, 33(1), 201-211.

Vangen, S., Hayes, J. P., & Cornforth, C. (2015). Governing cross-sector, inter-organizational collaborations. Public Management Review, 17(9), 1237-1260.

Wiesel, F., & Modell, S. (2014). From new public management to new public governance? Hybridization and implications for public sector consumerism. Financial Accountability & Management, 30(2), 175-205.

Performance Appraisal

Performance Appraisal is the estimation of how the employees of an organization have performed over a certain period as well as to gain an understanding of how these employees work. It is a process through which an organization’s employees are assessed to ensure that they work in conformity with its goals. The appraisal is conducted as part of the performance management process of the organization because how it is handled is what determines whether the organization is able to achieve its goals or not. It can further be said that a performance appraisal is an assessment and discussion of how an employee has performed in his or her work and this assessment is based purely on performance and not on the characteristics that a re displayed by the individual employee. This process helps in the measurement of the skills that have been displayed and the things which an employee has accomplished with as much accuracy and uniformity as possible.

The understanding that is developed by the employee’s supervisor enables him to determine the abilities of individual employees and this ensures that they are placed in positions within the organization which will further its growth and achievement of its goals. Furthermore, it is designed to help the employers determine the areas whose performance needs to be enhanced as well as ensuring that the employees are provided with the opportunities that are necessary for the promotion of their professional growth. This process is done in methodical ways which gives the supervisors the opportunity to measure the payments that are made to their employees in comparison to the aims and objectives of the organization. Performance appraisal also gives the supervisors the opportunity to make an analysis of the factors that determine how the employees perform over a certain period. It is a system which helps the management of an organization to be in a position where it is able to provide guidance to its employees towards a path which will lead to their performing better in their jobs.

While performance appraisal can be considered to be an immensely important tool for that can be used by supervisors to gain an understanding of the people who work under them, it is not necessarily the only one. This process has to be augmented by the supervisors ensuring that there are open lines of communication available to employees throughout that ensure that there is an understanding which helps in the determination of a good and effective working relationship. When conducting a performance appraisal, the supervisor must ensure that each employee is given an appraisal that is thoughtful and careful so that an accurate assessment can be made. In order for a performance appraisal to be successful, the supervisor must display a willingness to conduct an appraisal that is both constructive and objective. In addition, the employee must display a willingness to take positively all the suggestions that are made to him or her, and to be able to work with the supervisor to achieve the goals of their organization.

A performance appraisal is a process that is conducted once every year by a supervisor to evaluate the performance of all the employees that work under him. There might arise cases where an employee may have changed jobs within the period before the appraisal and in such cases, both of the supervisors of this employee during his period have to make a submission of his or her performance so that a fair appraisal can be made. During this process, the most up to date job description of the employee on file is evaluated by the employee and their supervisor and if it is found to be necessary, this description can be revised. The process also involves a review of the salary increase to which each employee is entitled and this tends to be subject to the approval of the administration. The basis upon which this increment is allocated is that of the merit of the employee’s performance and its aim is to reward the top performers within the organization as a match for their contributions. 

In many organizations, the performance appraisal is part of the annual activities that have to be conducted. However, in many cases, the role that is given to the supervisor as judge tends not to be taken lightly and it is in fact heartily disliked by many supervisors. This is due to the fact that many of the supervisors involved tend to hold the fate of their employees in their hands during this process, something which can be disastrous for both parties involved. Many of the supervisors who conduct the performance appraisal tend to be influenced more by the recent actions of the employees than that of the entire period of the appraisal. Since most of the information gathered by the supervisor is based on recent memory, it is often difficult to create a true picture of an employee’s performance. One would go as far as to say that the appraisal process is flawed because it lacks the objectivity needed to judge the employees fairly.

It is common practice in many organizations for the supervisors to put off conducting performance appraisals for their employees because of their discomfort over being the judge of the level of their employees’ performance. This, in the process, ensures that many of the performance appraisals are often long overdue and this creates a situation where the employees become resentful of their supervisors. Many employees often feel that their supervisors are denying them the right of receiving a well deserved pay increment since the annual pay rises of the employees tend to be tied to how well they performed in their appraisals. The performance appraisal is subject to many complications some of which include inaccuracy of the information concerning employees. This is because of the fact that many of the decisions made by the supervisors as judges is often from recent memory and it fails to put into account the performance of individual employees throughout the period, usually a year. To avoid any conflict with the employees, supervisors end up assessing them favorably and not according to their real performance, ensuring that there is a flaw in the day to day running of the organization.

A Geopolitical Profile of Russia

Introduction

Russia is one of the most influential geopolitical entities in the world today and this is mainly as a result of its unique position in the global arena. This country has been extremely influential in the Eurasian region for much of its history and this influence has not only been political, but cultural as well. The power of this state, from the time of the tsars to the post-communist world can be considered to have essentially remained intact within the region surrounding it. This country is normally ranked second only to the United States in its ability to project its power across the globe and it is mainly as a result of this that it has been able to retain its influence long after falling from its superpower status.

Geography

Russia is the largest country in the world with its borders stretching from northern Europe across northern Asia to the Bering Straits. As the largest country in the world, with an area of 17,075,400 square kilometres, it is one of the few countries in the world that have a diversity of natural resources, people, as well as neighbouring countries. The result is that this country has come to exert a lot of influence over a large territory as well as its neighbours for centuries. Its geographical position is unique because it allows it to wield some influence on three continents as well as being able to project itself militarily. Russia incorporates a wide range of climates and environments within its territory and these have had an effect on its historical development. Moreover, this country has borders with a diverse number of countries including China, Norway, Lithuania, Finland, Kazakhstan, Mongolia, the United States across the Bering Straits, among many others.  The geographical position of this country has also placed it on top of the largest oil and gas reserves on the planet and this country has been able to ensure that this resource is used to further its geopolitical power over the Eurasian region. In addition to oil and natural gas, Russia has other significant resources which include deposits of timber, coal, and as well as mineral resources that have given it an advantage over other countries in the region. As the largest producer of natural gas in the world, Russia is in a unique position to determine the futures of some of its neighbouring countries, most of which were former member states of the Soviet Union. It is through its unique position as being the number one producer of natural gas, in addition to oil, that it has been able to ensure that it maintains its influence over the region because it has the funding necessary to make its influence felt. The large forests that are found in the region of Siberia are second only to the Amazon jungle in Brazil and they are believed to absorb large amounts of carbon dioxide which helps to ensure that the air in the region is kept clean. The eastern parts of Russia are relatively sparsely populated when compared to the European side which carries the bulk of the population. While this may be the case, there are a significant number of people in all its administrative regions, these being individuals who have for the most part acclimatised to the harsh climate that occurs especially in the northernmost parts of the country. While Russia has come to occupy such a large area, this was not the case in its early centuries where it was essentially divided into diverse city-states and duchies controlled by members of the Rurik dynasty. However, all this changed when these disparate city states were unified and the Russian state began its expansion in earnest during the 16th century. The result was that it ended up conquering much of the land that had once been occupied by the Mongol Golden Horde. Its occupation of new lands sealed its fate in world history because it is through its size as well as its multiethnic make up that this state has come to be recognised into the modern world. Through its new found geographical acquisitions, Russia was able to make sure that it was no longer a victim of the aggression of other European powers. Instead, its geographical position became the basis upon which its status as a great European power was established and this would continue until the fall of Communism in 1991.

History

The Russian state was established in the tenth century by a legendary group of Vikings based in Kiev and this would later expand into what came to be known as Russia. The founders of this state, according to legend, were Rurik and his brothers who would eventually end up forming the Rurik dynasty that would rule Russia until the death of Ivan the Terrible. The early Russian state was essentially a pagan one with little interaction with the outside world until Prince Vladimir of Kiev converted to Orthodox Christianity, thus establishing ties with the Byzantine Empire. The growth of the Russian state was brought to a sudden halt in the thirteenth century during the Mongol conquest which resulted in the sacking of Kiev. The destruction of the first Russian state led to a shift of power to Moscow, which was ruled by another Rurik prince and was a vassal of the Mongols. The vassalage to the Mongols of the Golden Horde ensured the survival of the Russian state in Moscow in the form of the Grand Duchy of Muscovy. This would eventually rise to such great prominence that it would not only overthrow Mongol rule, but would eventually evolve into the Russian Empire, encompassing all the lands of the Golden Horde. With the conquest of the Byzantine Empire by the Ottoman Turks, Russia, which had also established ties through dynastic marriage, claimed to be the heir to the power and glory of Caesars. In this way, Moscow came to be considered the third Rome and its rulers began to be called Tsars, Russian for Caesar.

Russia entered the modern age under the rule of Peter the Great whose efforts were directed at making his country a truly European state. He forced the Russians to cease some of the traditions that seemed to keep them back and were considered unEuropean. Furthermore, he established a new capital closer to Europe at St. Petersburg, essentially choosing it over Moscow as the preeminent city in the Russian Empire. In addition to these efforts, Peter the Great carried out campaigns which ensured that the empire was greatly expanded while at the same time gaining political leverage with other European states through developing modern means of shipping as well as adopting the European culture, especially that of France. However, despite these efforts, Peter was not able to end one of the institutions which held Russia back from becoming one of the most powerful states in Europe, serfdom. Serfdom had existed in Russia for centuries and this institution had developed to such an extent that individuals, particularly serfs, were essentially slaves in their own land. The serfs formed the majority of the Russian population and these were tied to the land which for the most part was held by nobles or boyars; individuals who practically owned the serfs on their land. Serfdom remained a stain in Peter’s legacy and it would eventually be the motivation behind the Russian Revolution centuries later in the early twentieth century.

The Russian Revolution and the resulting civil war is one of the most significant events to have taken place in the twentieth century because it ensured the rise of communism in the former Russian Empire, which became the Soviet Union, and later across the globe. The Russian royal family was put to death and the monarchy abolished to be replaced by a communist state under the leadership of Vladimir Lenin. Lenin was a charismatic leader who was a staunch believer in Marxist philosophy and sought to ensure that communism spread all over the world. His death and succession by Josef Stalin led to a new phase in the development of communism in Russia with Stalin choosing a more aggressive approach to that taken by his predecessor. He made a deal with the Nazi government in Germany for the partition of Poland and after the Nazis invaded the Soviet Union, he changed sides and joined the allies in the Second World War. The fall of Britain, Germany, and France as great powers after the Second World War paved the way for the Soviet Union to become a global superpower alongside the United States and this ushered in considerable rivalry between these states that became known as the Cold War. The power of these countries was based on their having considerable nuclear arsenals; the latter ensuring that there was no direct confrontation between these superpowers. The fall of communism and the dissolution of the Soviet Union in 1991 was one of the most significant events in the later twentieth century because it ensured American pre-eminence in a unipolar world.

Power

Despite its loss of power after the collapse of the Soviet Union, Russia has remained an important player in regional and global politics. One of its greatest strengths is that it has been able to maintain a level of influence over a majority of former soviet republics especially through the significant number of Russians living in these countries. Furthermore, as a result of its size as well as abundant natural resources, especially natural gas and oil, this country has been able to ensure that it exerts a level of influence over its neighbours. This is especially the case with the European Union which for years developed deals of cooperation with Russia while the latter supplied it with one third of its natural gas supplies. Under the leadership of Vladimir Putin, Russia has seen its influence rise on the global stage, with its becoming more assertive about its interests. Through its permanent membership in the United Nations Security Council, Russia has been able to ensure that it not only protects its legitimate interests, but also those of its allies. The result has been that it has increasingly cooperated with China to break the dominance of the United States and its allies over global affairs. Russia is also a nuclear state with the largest nuclear arsenal in the world and this has helped in securing its position in the globe as well as acting as a deterrent to powers that would otherwise led to its demise.

However, despite its strengths, Russia also has several weaknesses which might create a situation where it loses its geopolitical position. Among these is its overreliance on its oil and natural gas production to cater for some 50% of its budget. This overreliance on its natural resources has created a situation where Russia has essentially failed to diversify its economy and this poses a potential threat from a geopolitical perspective. Furthermore, its aggressive stance to protect its natural interests has made it a target for American and European Union sanctions with the latter seeing Russian re-emergence as a threat to their global dominance. These sanctions, imposed in 2014 at the height of the Ukraine crisis and Russian annexation of Crimea, have been harmful to the Russian economy and have led to its shrinking. The fall of global oil prices has also diminished Russia’s budgetary capabilities; hampering its continued rise as a dominant geopolitical power in the Eurasian continent.

Russia has attempted to ensure that it no longer loses its influence over former soviet republics after Estonia, Latvia and Lithuania not only joined NATO but also the European Union. This is the reason why Russia has chosen to take on a more aggressive stance because it considers NATO encroachment on its borders as a threat. The wars first in Georgia in 2008 and the ongoing Ukraine civil war are actions which have been taken by Russia to prevent former soviet republics from joining NATO. Since the return of Vladimir Putin to the Russian presidency in 2012, the relationship between Russia and the United States has soured as each has come to view each other with increasing suspicion. The mutual suspicion between these two nuclear armed states has increased tensions to almost Cold War proportions and it has led to a situation where despite not confronting each other directly, they have become involved in a proxy war in the Ukraine as well as in Syria where Russian support has ensured that Bashar Al Assad has remained in power.

Conclusion

Russia has remained a powerful actor in the Eurasian region; a factor which can be attributed to its nuclear capabilities as well as the abundance of natural resources within its borders. The size of this country has also ensured that it pursues a complex foreign policy designed to address its interests with its numerous neighbours. Russia has increasingly aligned itself with such countries as China and Iran in a bid to diminish American influence over the rest of the world and in a bid to create a multipolar world. It is yet to be seen whether its geopolitical objectives will be met in the near future amid the economic sanctions that have been enforced by the United States and its allies. The rise of Russian nationalism as a result of the Ukraine crisis has seen a level of unprecedented support for the Russian government and its actions; a situation which has ensured that the government is able to pursue its objectives internationally with the full support of a majority of the Russian populace.

Facts about the Theory of Demand

Demand is the economic theory that explains a consumer’s desire and readiness to pay a price for a precise good or service. Normally, the price of commodities and services increase as their demand dwindles while the price decreases when there is a high demand for them. According to Taylor and Weerapana (53), the term demand is a relationship between two economic variables namely: the price of a particular good; and the quantity of that good that consumers are willing to buy at the price during a specific time period. It describes how much of a good consumers will purchase at each price and it can be represented by a numerical table or by a graph. As the price of goods and services rise, the quantity demand by consumers goes down. Siddiqui (35) further describes demand as that effective desire which can be satisfied meaning that desires are simply imaginations. It is required that the demand commodity should be available at a certain place, time, and price. Demand must satisfy the following requirements; desire for the specific commodity; sufficient resources to purchase the desired commodity; willingness to spend the resources; and the availability of the commodity.

Demand can also be used to measure or predict the quantity of commodities and services which the buyers would be motivated to buy in a market at a given time and at a given place. The changes in the price of the commodities that are related to that which a consumer uses affects the market demand for it and an example of this would be the price of margarine (which the consumer does not normally use) is much lower than the price of butter (which the consumer normally uses). Inevitably, the consumer will decide to go for the cheaper product although their preference lies with the more expensive one. The demand for certain commodities may also be affected by the changes of the income of potential buyers, for example, if the income of a buyer is reduced, then he will opt to purchase cheaper commodities in line with his diminished income; but if the income is increased, then the buyer’s demand for the same product at higher prices will increase significantly. The future expectations of buyers almost always have a tendency of influencing the market demand of a product and this is usually displayed by considering the income security of potential buyers. If a potential buyer is confident in his belief that his future income will be stable, the he is more likely to spend more in buying both the commodities that he needs and wants. If however his future income is very insecure, then he is most likely to keep most of his money in savings in anticipation of a bleak financial future than spending it on commodities.

The demand schedule is a table that shows the quantity of demand of a good at the various price levels and it is a very important feature within the market because it helps to predict the future trends in the demand of commodities. In this way, given the price level, it is easy to determine the expected quantity demanded. A demand schedule is normally used alongside a supply schedule and these show the amount of certain goods that can be supplied to a market or markets at given price levels at various times and it is used to indicate that there is an inverse relationship between the price and the quantity demanded. Lipsey and Chrystal (40) state that a demand schedule is one way of showing the relationship between quantity demand and price. It is a numerical table that is used to show the quantity of goods that will be demanded at some selected prices.

Hoag and Hoag (59) state that the law of demand shows an inverse relationship between the price of a good and the quantity demanded of that good. When the value of a commodity goes in a certain direction, the amount of the equal commodity that is in demand goes in the opposite direction. As the price rises, less is purchased and this is indicated by the quantity demanded decreasing. There is a clear evidence of the law of demand at work in our daily lives. For example, when postage rates increase, then fewer Christmas cards are sent because the quantity demanded has fallen as the price has risen. When retail stores advertise sales, then these sales serve to increase the quantity demanded by lowering the price. The buyer response to higher fuel and energy prices will lead to smaller and more energy efficient cars, and in the homes, cooler temperatures and sweaters because there is a lower quantity demanded of energy at the higher price.

One reason why a consumer buys more of a good as the price falls is that the good becomes an attractive substitute for other goods and this encourages the consumer buys more of the good and consequently less of the other goods related to it. As the price of a good goes down, the consumer is able to purchase more of this good than he could before the price fell. Therefore, the consumer appears to have more income but this is not the case because it should be noted that the amount of money that the consumer actually has remains unchanged yet the purchasing power of the money increases as the price falls. The law of demand tells us that people have a tendency to respond to the price changes of given commodities and learning this would be helpful for a trader in fixing the prices of his commodities because he knows how much the demand for that particular commodity will fall if the price is raised beyond a certain level. The law of demand also helps the government in the setting of taxes on various commodities by analyzing the effects of taxes on the demand of these commodities in the market and adjusting the tax rates so that they may be more to the government’s advantage. It is also a very important factor in the planning of when and where to sell commodities due to their demand.

There are however some exceptions to the law of demand and an example of this is the inability of this law to explain why when the price of some goods increases, their demand also increase, and when their prices fall, then their demand decreases with this fall. A good example of such goods are precious stones and metals whose demand will continue to be high when their prices are high and the demand for them falls when their prices fall. A lot of people out of ignorance consider goods of cheaper prices to be of low quality and they buy it less, but when the prices of such commodities become high, then there is a tendency among these buyers to buy more of this commodity.

The law of demand further does not work when in anticipation for the rise of the price of goods; consumers begin to buy more of these goods even after there is an increase in the price of these goods in the present time. Similarly, if the prices are expected to fall in the foreseeable future, the consumers will buy less of these goods even if the costs of these commodities have become even lower in the present. Moreover, the law of demand does not work during the times of war or emergencies because if there are fears of a food shortage, then consumers will buy more food commodities for the purpose of hoarding and building stock. On the other hand, under certain situations, during an economic depression when prices are continuously falling, people tend to postpone their demand and thus buy less at lower prices.

In order to define marginal utility, we shall first define what utility is. Utility is the way defined by market participants of measuring gratification or contentment and how these relate to the decisions that people make while purchasing goods and it measures the advantages or disadvantages of consuming certain goods or services. Lipsey and Harbury (39) state that marginal utility is defined as the difference in utility arising from a change in the rate of consumption per period of time. Marginal utility is the added fulfillment that consumers gain from consuming additional units of commodities or services. It is an essential economic concept because the economists make use of it to determine how much of an item potential consumers will buy. The marginal utility is positive when the consumption of a bonus item increases the total utility while marginal utility is considered to be negative when the consumption of the bonus item decreases the total utility.

Mishra (20) defines the demand curve as the graphic illustration of a demand schedule depicting the relationship between the price of certain commodities and the amount of these commodities that buyers are able and willing to but at a given price. Demand curves are used to approximate the conducts in the market and these are often combined with supply curves to approximate the price at which sellers are willing to put up for sale the equivalent quantity of goods as buyers are willing to buy. The demand curve represents the highest quantities for every unit of time that consumers will take at various prices. The demand curve is used to show the relationships between the diverse quantities demanded at diverse prices.

There are various factors which affect the demand of commodities in the market and this is elaborated by Siddiqui (43) who states that an increase in the number of buyers will increase the demand for the good, for example, the demand for land increases as the population increases. An increase in the price of a commodity expected in future increases the demand in the present while a decrease in the same decreases the current demand. For example, when a good is temporarily put on sale, the people stock up on the good with the expectation that the good will no longer be in the market in the near future. Demand can shift due to the changes in taste over time, for example, the demand for breakfast cereal may possibly be very high in the morning but its demand may turn out to be very low at night. Furthermore, changes in quality also affect demand, for example, CDs cost more than cassettes because the music in CDs is of a higher quality than that in cassettes.

Siddiqui (52) states that elasticity of demand is a measure of the relative change in the amount purchased in response to any change in price or a given demand curve. Price elasticity deals with how sensitive the demand for a certain commodity is to a change in the products own price and in relation to this, there are several factors which determine the elasticity of a product or service and some of these include the following: the more the number of close substitutes for a good in the market, the more elastic is the demand for a product because consumers can more easily switch their demand if the price of one product changes relative to others in the market. Furthermore, there may be significant transaction costs involved in switching between different goods and services and in this case, demand tends to be inelastic, for example, cell phone service providers may decide to include fine sections in contracts or may insist on twelve month contracts being taken out. Goods and services that are considered by consumers to be necessities tend to have a more elastic demand because the said consumers can still survive without luxuries when their financial plans are stretched to their limits. Demand has a tendency to be more price elastic the longer consumers are allowed to respond to a price change by varying their purchasing decisions because it takes time for consumers to notice and to respond to price fluctuations.

References

Hoag, Arleen J & Hoag, John H. Introductory Economic. Singapore: World Scientific, 2006.

Lipsey, Richard G. Economics. Oxford: Oxford University Press, 2007.

Mishra, Sasmita. Engineering Economics and Costing. New Delhi, India: PHI Learning, 2009.

Siddiqui, S.A. Managerial Economics and Financial Analysis. New Delhi, India: New Age International, 2006.

Taylor, John B. & Weerapana, Akila. Economics. Andover, United Kingdom: Cengage Learning, 2007.