Guest Satisfaction Essay Example for Free

Guest Satisfaction Essay Guest satisfaction within the Hospitality Industry is very important and essential. Only when a restaurant exhibit satisfactory guest it can be successful for a longer period of time. Guests will only come back and spend more money when the particular establishment supplies their wants and needs. Many aspects can influence the satisfaction of guests. However one main aspect which can influence the satisfaction is the quality of staff members. They represent the restaurant and when they are not good in their job it casts a damning light on the establishment. Guests will not recommend a restaurant which possesses bad staff members who are not polite or motivated. Within the staff quality there are several aspects which should be fulfilled in order to get a guest satisfactory guest. Therefore the main question of this Module Assignment will be â€Å"Which sub dimensions of the staff quality influence the guest satisfaction†. Literature Review In this assignment we will determine the topic staff quality and the different aspects which are linked with it. In the following Literature Review we will take a closer look on the Service time and the Service quality of staff and the stereotypes within the Hospitality industry. Service time of staff The service time has become an extremely important component of service quality within the hospitality industry. There is a complex relationship between the waiting times and the overall customer satisfaction because this will only be negative assessed when the costumer perceived the waiting time to be longer than what they found to be reasonable. Because most restaurants deliver so much quality in tangible offerings, they can distinguish themselves from their competitors by the quality of service (Allen, 1999). A study was developed to examine two factors in relationship to the waiting times. The first part of the study was the impact of waiting times at various stages of the service p rocess on perceived customer satisfaction. And the second part of the study was: What is the impact of company training activity on service time efficiency. For the study 8 of the same casual dining’s of one particular chain were followed. Only in 4 restaurants the managers talked to their staff about the service time issues every day before the shift started. 2 of these restaurants also called out the time between the orders were taken and it left the kitchen. The other 4 restaurants didn’t have a meeting or something about waiting times. The various stages of waiting time that were studied were: Arrival greet: time elapsed before guest was greeted at door Seating time: lapsed before guest was greeted at the table Drink Service: wait time after order was taken Order time: amount of time lapsed after order was taken -Check back time: time lapsed after food was received Payment time: how long guest waited for change/Credit Card Slip The results showed that the 4 restaurant that had spoken about the waiting time in all studied stages of waiting were on time and the percentages of the other 4 restaurants were always lower. The two restaurants that also called out the time during the shifts had a table turn (the length of time a guest would occupies a table at the Restaurant) of a very low 40 minutes. The two restaurants that only spoke about it before the shift had a table turn of 48 minutes and the other 4 had a table turn of over 50 minutes! For the study there were also mystery shoppers who went to the restaurant and after the visit had to give there rating. The mystery shoppers were asked about multiple items although the service times were most heavily rated. The 4 restaurants that spoke about waiting time were considered an excellent rating. The 4 that didn’t speak about waiting time were overall considered a below average rating with improvements needed. Service quality of staff Service quality can be seen as a very important factor when it comes to guest satisfaction (Melih Madanoglu, 2004). Service quality is the consumer’s judgment about an overall superiority or excellence. Itcan be crucial in the overall performance of an organization and enable it to differentiate itself from competitors to gain competitive advantage (Jannadi, 2001; Stevens et al.,1995). If the guests experience a good service there is a high chance that they will recommend the restaurant where they have eaten to other people. Everything depends on a good relationship between the customer and the staff. Many researchers carry out surveys about the dimensions of service quality and all had different solutions because like Parasuraman says the dimensions of SQ is generic. So it can be said that every dimension has to be adapted to the different restaurant and to the different target group they want to attract (Parasuraman, 1985). However when you look to the different results the researchers got from their surveys there are always some dimensions which appear every time. These words are reliability, staff behavior and their attitude to guests, timeliness and physical quality of the staff. All of these aspects have to be fulfilled to get a satisfied customer. Guests want to have a staff member who is nice, self-confident and friendly (behavior). Furthermore they want to see waiters/waitresses who like their job and are blessed to have them as guests (attitude). They also appreciate it to get their food and there drinks in an adequate time (timeliness). Finally customers feeling more comfortable when they have employees, who care for personal hygiene, have the right clothes and smell nicely. Stereotypes in the hospitality Customers will form their judgment based on the employee’s personal appearances, the customer’s pre-established expectations, and the environment in which the interaction occurs (Lockwood Jones, 1989). When there isn’t much information about these mentioned aspects, the customers will form impressions of the restaurant by looking to the staff members (observable cues). Race, sex, age, occupations and physical attractiveness are ex amples of these observable cues. These may connote differences in status and competence to observers (Berger et al., 1977). This is all about stereotypes and this plays an important role in human judgment. Stereotyping is the process of ascribing characteristics to people on the basis of their group memberships (Oakes et al., 1994). Selecting the best employees for service encounters is critically important for customer satisfaction and, ultimately, an organization’s success but how to do this when customers base their perceptions on stereotypes? The research of H.-F. Luoh S.-H. Tsaur analyzed the effects of gender stereotypes on the perceived service qualityunder favorable and unfavorable service quality conditions in fine dining restaurants. The results showed that under favorable service quality conditions, the respondents’ perceived service quality with regards to a female server on tangibles, reliability, assurance, and empathy dimensions was better than that of a male server. On the other hand, under unfavorable service quality conditions, there were no statistical differences in the respondent’s perceived service quality on the service rendered by a female server or a male server (H.-F. Luoh S.-H. Tsaur). Another form of stereotyping is the fact that people expect better service from someone of the same sex simply because they feel they might be more comfortable interacting with them (Fisher et al., 1997). Mind-Map Sub questions For specifying the main question of this research paper which is â€Å"Which sub dimensions influence the guest satisfaction†, three sub questions were phrased. These sub questions were phrased after making the mind-map and analyzing the literature review. 1. Does the behavior of staff members influence the guest satisfaction? 2. Does the Appearance of staff influence guest satisfaction? 3. Does the speed of staff have an influence on the guest satisfaction? Methodology This chapter provides information about how the study was carried out. It dealt with the subject from which the data were collected, the tool which was used in collecting the data and how this tool was used for the subject from which the data were collected (sample, instrument and procedure). Sample This research study is carried out by 55 students of the Stenden University Hotel School. To collect the data for the study, the students have visited 16 different restaurants. Two of these restaurants were pizzerias and two were sushi restaurants. 15 of the restaurants are located in the city of Leeuwarden. Only one is located in another city called Sneek. The price range of the restaurants lies between the 8,50 â‚ ¬ and 36,25 â‚ ¬. Some of the restaurants were visited by more than two people at the same time. Because of this fact a table is presented beside the text which shows the different restaurants and how many people have visited each of them. Instrument The instrument which was used for the study was a questionnaire with a Likert-scale from 1-10. The questionnaire focused on different points. Those points are Hygiene, General behavior, attitude, speed of staff service, language, posture, gesture, knowledge, appearance and presentation and general satisfaction. The questionnaire shows also other aspects: The gender of the server, the gender of the student and the average spending per person in the restaurant. Procedure All the 55 students chose a restaurant of their interest. The questionnaire with the Likert-scale from 1-10 was brought to the restaurant. The students filled in the questionnaire during or after the dinner in a discrete manner. It has to happen like this because staff of the restaurant should not get influenced by the fact that they were observed. After every of the 55 students had dinner in the restaurant of his/her choice, all the questionnaires were collected. All the answers of the questionnaires were put in a clear table in excel. Results In the following chapter the results of the quantitative questionnaire for the restaurant visit will be presented. The focus of the questionnaire was laying on the question â€Å"Which sub dimensions of the staff quality influence the guest satisfaction†. For answering this question scatter plots and descriptive statistics were used. With the help of these methods it could be found out which sub dimensions were most equally valued and which variable were the most chosen one. The first method is the mode. It can be seen in it that most of the participants valued the sub dimensions of the staff quality which were given in the questionnaire with a high mark, which means that almost all probands were satisfied with the quality of the staff in the restaurant they have chosen. Hygiene, general behaviour, attitude, speed of staff, language and general satisfaction were valued with an 8 and posture, gesture, knowledge and appearance/presentation with a 7. According to this it can be said that the most participants of the study were more satisfied with the first six sub dimensions which can be seen in the table below than with the 4 sub dimensions which are following (look at table 2). Table 1: Descriptive statistic for the Mode Hygiene| 8| General Behaviour| 8| Attitude| 8| Speed of staff| 8| Language| 8| General Satisfaction| 8| Posture| 7| Gesture| 7| Knowledge| 7| Appearance and presentation| 7| The second method which was used for analyzing the data of the questionnaire was the scatter plot. Therefore the different sub dimensions of the questionnaire were taken in relation with the variable â€Å"General Satisfaction. From the nine valued variables which were compared, four of them were most significant. Those four were therefore the variables which had the highest relation to â€Å"General Satisfaction†.2 The first scatter plot in figure one dealt with the relation â€Å"Appearance/presentation† and â€Å"General Satisfaction†. The dots which can be seen in it lie very close to each other and to the regression line as well which means that almost all of the participants of the questionnaire valued both variables almost with the same mark. The next scatter plot which belongs to figure 1 focused on the sub dimensions â€Å"Posture† and â€Å"General Satisfaction†. It is cognizable that the dots of this plot did not lie that close together like they did in the previous relation which means that the participants did not all had the same opinion about both sub dimensions. The ensuing scatter plot showed how similar the probands valued the relation of â€Å"General Behaviour† and â€Å"General Satisfaction†. Here it can be seen that the dots were further apart than in the other two plots. This finding showed that even more participants than in the other scatter plots valued differently and therefore did not have chosen the same mark. The last scatter plot in figure 1 concentrated on the combination â€Å"Language† and â€Å"General Satisfaction†. It pointed out that the dots of this one had the highest spreading of all four scatter plots. The consequence of this is that only a small amount of the probands valued this relation with the same mark. All in all it can be said that the combination â€Å"Appearance/presentation† and â€Å"General Satisfaction† are the relation which the probands of the questionnaire valued most equally. Mostly all of them had the same opinion about this proportion and have experienced it in a similar way. On the other hand â€Å"Language† and â€Å"General Satisfaction† though is the relation which was assessed most differently. The people who filled out the questionnaire had therefore all a different opinion about this combination. Figure 1: Visualization of the four significant variables In the end it can be said that the reason why the sub dimensions â€Å"average spending per person† and the â€Å"gender of sever† were not involved in the analysis is that both criteria didn’t give enough information for a meaningful and helpful conclusion. Discussion In the chapter of â€Å"Discussion† the findings of the literature review, the results of the questionnaire and therefore also the answer of the three sub questions will be discussed in detail. In the end a few limitations and recommendations on the process and procedure of the research will be named. Students of the Stenden hogeschool carried out a research study about staff quality. All of the students had to form groups and visit a restaurant of their choice. During the visit a questionnaire had to be filled out. This questionnaire consisted of several variables which belong to the topic â€Å"staff quality† like â€Å"Hygiene†, â€Å"General Behaviour† or â€Å"knowledge of the staff†. Those sub dimensions had to be assessed with the help of a likert scale from 1 to 10, whereat 10 meant â€Å"excellent†. After all that, each group had to formulate a main and three or four sub questions concerning staff quality and guest satisfaction. With the help of those questions the results of the questionnaire had to be analyzed. The main question of this paper was â€Å"Which sub dimensions of the staff quality influence the guest satisfaction†. For narrowing down this question a bit three sub questions were formulated. Those sub questions are â€Å"Does the behavior of staff members influence the guest satisfaction?†, â€Å"Does the Appearance of staff influence guest satisfaction?† and â€Å"Does the speed of staff has an influence on the guest satisfaction?†. In the result chapter it could be seen that especially five sub dimensions influence the thinking of the guests. One of these sub dimensions is â€Å"General Behaviour†. After it got taken in relation with â€Å"General Satisfaction† it was cognizable that the people who valued â€Å"General Behaviour† also assessed â€Å"General Satisfaction† almost with the same mark. The mode also showed that â€Å"General Behaviour† were valued from almost all of the probands with an 8 which means that all the staff members in the different restaurants behaved in the correct way. This finding expresses therefore that a good behaviour of the staff influences the g uest satisfaction in a positive way. It also reinforces the first sub question whether the behaviour of staff members influence the guest satisfaction. Also different researchers of the text â€Å"Validating Restaurant Service Quality Dimensions† which was edited in the Literature Review say that a friendly and polite behaviour of the staff members is very important for getting happy and satisfactory guest. The next sub question was about the sub dimension â€Å"Appearance and presentation of staff† and in how far it influences the satisfaction of guests. Concerning the results of the questionnaire, it is cognizable that also this variable influences the guest satisfaction. This conclusion was provable by looking at the relation of â€Å"Appearance/presentation† and â€Å"General Satisfaction†. The probands of the questionnaire had mostly the same opinion about the â€Å"Appearance and presentation of staff† as well as about the â€Å"General Satisfaction†. That means that when they have a special opinion about the first sub dimension they transfer it also to their overall satisfaction. In the mode the variable â€Å"Appearance/presentation† was assessed with a â€Å"7† which means that the majority of the participants were satisfied with this sub dimension. Also the â€Å"General Satisfaction† was valued with a high mark so it cou ld be said that the â€Å"Appearance and presentation of staff† influenced the satisfaction of the participants in a positive way too. In the literature review the author of the text â€Å"Gender Stereotypes and Service Quality in Customer – Waitperson Encounters† also said that the guests always pay attention to the appearance of the staff members. When they are not dressed adequate or looking cultivate people might think that the food they serve will also be dirty and contaminated. Because of this a neat outward appearance is important for making the guests feel comfortable and giving the feeling that everything is hygienic. Only when the guests feel comfortable they are satisfied and happy during and the restaurant visit. These findings confirmed therefore the second sub question whether the â€Å"Appearance and presentation of staff† influences the guest satisfaction. The last sub question dealt with the variable â€Å"speed of staff† and in how far it influences the guest satisfaction. In comparison to the other two sub dimensions, this variable showed another outcome. In the results it was cognizable that only a few of the participants of the questionnaire valued â€Å"speed of staff† with the same mark which means that they did not have the same opinion about this sub dimension. Whereas the first two variables were valued almost the same like â€Å"General Satisfaction†, â€Å"speed of staff† was assessed differently. Because of that this variable does not influence their overall satisfaction that much like â€Å"General Behaviour† and â€Å"Appearance and presentation of staff† These findings also answer the last sub question whether â€Å"speed of staff† influences the guest satisfaction. Although the text called â€Å"Validating Restaurant Service Quality Dimensions† which was worked on in the Literature Review had to be expressed that â€Å"speed of staff† is important for getting satisfactory guests, it seemed that this variable is not that relevant for the participants of this questionnaire. During the analysis of the results two limitations concerning the questionnaire appeared. The first limitation would be that it is not possible to find out which sub dimensions are most important for the guest satisfaction which is normally one of the most essential questions for interpreting in how far staff quality influences the overall satisfaction of guests within a restaurant. A recommendation would be to formulate another question at the bottom of the questionnaire concerning the importance of the sub dimens ions. With this question it would be possible to analyze which aspect is the most important one within staff quality. The second limitation is that only a few people were surveyed. The results would be more reliable if more groups would have had to fill out the questionnaire. It is only possible to formulate meaningful theses concerning a specific topic if a bigger group will be asked because only then it can be make sure that it is not a coincidence when a participant assesses a variable with a good or bad mark. When a bigger amount of probands value a variable with the same mark it is more probable that it really deserves this assessment. References Andersson, D., Mossberg. (2004). The dining experience: do restaurants satisfy customer needs?. Food Service Technology. 4, 171-177. Louh, Hsiang-Fei, Tsaur, Sheng-Hshiung. (2007). Gender Stereotypes and Service Quality in Customer – Waitperson Encounters. Total Quality Management. 18 (9), 1035-1054. Madanoglu, M. (2004). Validating Restaurant Service Quality Dimensions. Journal of Foodservice Business research. 7(4), 127-147. Tobin, R., Huffman, M.(?) . Examining the Impact of Service Times on Overall Guest Satisfaction Perception in the Casual Dining Environment. FIU Review. 24 (1), 42-48.

Andrew Jackson Essay -- Biography Biographies

Andrew Jackson â€Å"I cannot be intimidated from doing that which my judgment and conscience tell me is right by any earthly power.† This quote by Jackson underlies the fact the he was a selfish, tyrannical ruler. He did not make decisions based on the interests of the whole nation but on his own personal benefit, in search of self- achievement. Although he was portrayed or possibly manipulated the citizens to believe that he was a president for the common man, that was simply not the way he acted. As president, he purposely ignored the power of the Judicial branch to judge laws, and strengthened the power of the Executive branch above the limits in the Constitution. He was also said to be rude and uneducated, which might have led to the reasons why he was such a power hungry tyrant; but before one makes this harsh judgment they must first realize the type of life that Andrew Jackson lived. It almost certainly was the main reason why his thought process was so different from the regular wealthy, educated earlier presidents. The third child of Irish immigrants, he joined the Army when he was only thirteen years old. Although he was young he had already developed hatred towards the British, because his oldest brother was killed fighting in the Revolution. Even though Jackson was an exceptional soldier, both him and his middle brother were captured by British troops. After their mother pleaded for their release, the boys were set free, but due to the poor living conditions of the army camp, Jackson’s family was overcome by the smallpox disease. Leaving him all alone in life. This traumatic time in his life could have been the start of all his psychological problems. It seems that trouble almost always found Jackson. After being a lawyer for only a few years, an argument with another lawyer in the town led to an insult. Eventually Jackson challenged the man to a duel. Things did not look good for Jackson's opponent because Jackson was a notoriously good shot, but at the last minute Jackson offered his enemy some bacon and a joke, and they laughed together. This shows Jackson had the power to manipulate people. In just a few years of law Jackson, now eighteen met his soon to be wife, Rachel Robards. There was a small problem though†¦Rachel was married. But Jackson being the terrifying man that he was, played with a huge knife during the divorce trial; this p... ...er as president by exceeding his limits and allowing his personal happiness and emotions influence his decisions that may have affected him positively but affected the rest of the United States in a negative way; which was unbelievably selfish. He left the nation with confusion and failures instead of contributing to it, achievements. Jackson once said, â€Å"I know what I am fit for. I can command a body of men in a rough way; but I am not fit to be President.† I do not think he realized how right he was. Bibliography 1. Cayton, Andrew, Perry, Elisabeth I. and Allan M. Winkler. American Pathways to the Present. Needham: Prentice Hall, 1995 2. Kunhardt, Phillip B, Phillip III and Paul. â€Å"Andrew Jackson the 7th president.† The American President. (April 9, 2000): Online. Internet. May 2, 2001 3. Jackson, Andrew. â€Å"First Inaugural Address.† Inaugural addresses of the Presidents of the United States. (1989): p.3 4. Jackson, Andrew. â€Å"Second Inaugural Address.† Inaugural addresses of the Presidents of the United States. (1989): p.2 5. Zinn, Howard. †As Long as the Grass Grows or Water Runs † A Peoples History of the United States: 1492 to Present. New York City: Harper Collins, 1999

Max Weber: A Short Biography Essay

Being a man with great aspirations, Max Weber’s life was filled with complexities and complications. Therefore, it is worthy of one’s time to explore the reasons of his success, a revolutionary thinker of the 19th century whose theories still remained as the subjects of interest among academics of the new millennium. In this paper, we shall explore on his life, followed by what influenced and motivated Weber to achieve the milestone of his life: scientific management theories. Lastly, we shall critique on the relevance of his theories in modern management. Biography Born in Erfurt, Thuringia, on 21st April 1864, Max Weber was the eldest son of Max Weber Senior and Hellen Fallenstein Weber. Suffering from meningitis at the age of four, Max Weber adopted reading as his past time which developed his academic strength at a young age (Secher 1980). Max Weber studied at the University of Heidelberg in the year 1882, specializing in the subject of Law. However, his education was disrupted while volunteering for military training as an Officer. In 1884, he resumed his education and graduated in 1890 (Secher 1980). He took up an offer at Freiburg University as an Economic Professor in 1894, a year after his marriage with Marianne Schniger, the grand niece of Max Weber, Senior. Ironically, Weber was haunted by a long term psychiatric breakdown and withdrew from work during the peak of his career as in 1897(Gerth & Mill 1982). Although psychologically disturbed, Weber inherited a vast amount of wealth from his deceased father (Secher 1980). The monetary gains enabled Weber to recuperate from his conditions along with the time and space to develop one of his academic masterpiece, â€Å"The Protestant Ethic and the Spirit of Capitalism† in 1904, which contested on the relevance of capitalism in the absence of spiritual belief (Gerth & Mill 1982). Max Weber died of pneumonia in Munich, on 14 June, 1904. However, he kept the world in awe with the introduction of Bureaucracy. A term which was quoted from his work â€Å"Economy and Society† published by Marianne in 1922; which advocated logical and scientific research methodology known as ‘rationalisation’ (Casteel 2009). Bureaucracy was originated from his skeletal invention of a system of management hierarchy while institutionalising a series of hospitals during World War I, of which; in hope to remedy the inequality of hereditary su ccession and the abused of authority within the German empire (Gerth & Mill 1982). Influences: Political and Social Factors Hegelian philosophy had been the German paradigm for centuries, originated from Georg Wilhelm Friedrich Hegel who advocated that Nations could only be prosperous when the state, the civil society and its citizens are managed with strong moral principles (Pippin, Hoffe & Walker 2004). Despite the grand notion, the Hegelian society became a system of corruption and abused, under the governance of the aristocrats. Defunct and degenerative, its relevance was threatened in the 19th century by the evolution of socialism. Unlike the Hegelian society, the mission of the modern socialism is to serve beyond self-interest, while promoting its non-affiliation between a society and its state; which resonated with the oppressed peasants and middle-classes of Germany (Steinmetz 1993). The problem was further intensified by the ruling of Kaiser William ll, whose political interests polarized from Bismarck’s political philosophy which has served as a political stabiliser in Germany (Burbank & Cooper 2010). During his reign, the Kaiser had developed his policies through public image and popular opinion of the Germans. Unfortunately, the approach proved to be unwise, given the autocratic nature of Kaiser William the II, policy making became a game of propaganda to glorify him along with the riddance of any negative publicity or criticism directed at the imperial family (Kohut 1991). Inspired by modern socialism and disappointed with the Kaiser’s and nobilities’ myopic view on politics, Max Weber began to question on the effectiveness of hereditary succession in political power versus meritocracy. In association with his first hand experienced on bureaucracy, Weber began to infuse it with the theory of Charismatic Leadership; where visionaries should be appointed as leaders and serve the nation, with an alteration to the original concept: that leaders should be elected based on merits and not chosen by birth (Wren & Bedian 2009). Economics Factors In the late 19th century, industralisation began to take flight across the western part of the world; however European industrialising nations failed to capture the economic advantages brought about by machinisation (More 2000). France was an exception who experienced spurring growth at the point of time in conjunction with the United State of America (USA). An economist by profession, Max Weber observed that the theory of capitalism and free competitions advocated by Adam Smith was the key for the two nations’ success (Gerth & Mill 1982). In 1904, Max Weber visited the USA on a mission to understand the true essence of capitalism, and noticed that Americans relied excessively on the convenience of technologies for profit generation; that moral ethics began to dissipate in the society (Gerth & Mill 1982). It was the fear of the dissipation which triggered Weber to theorise â€Å"The Protestant Ethic and the Spirit of Capitalism† to address the underlying moral hazards b rought about by technologies, in the absence of spiritual faith (Wren & Bedian 2009). Intellectual Factors John Calvin’s philosophy for Protestant reformation had been one of the rare ideologies which Max Weber adopted in his publications. The underlying reason for Weber to adopt Calvinism; which promotes economic growth and the specialization of labour under the context of the Protestant teachings (Wren & Bedian 2009), was associated with Max Weber’s mother, Hellen Fallenstein Weber. Being a strong proponent on humanitarian issues and the faith of a Protestant, Hellen had been the mentor of Weber in issues related to liberalism and spirituality (Gerth & Mills 1982). Hence, Weber’s choice of religious philosophy and his publication of â€Å"The Protestant Ethics and the Spirit of Capitalism† can be seen as a form of tribute to Hellen, in recognition for the undying care and love for her eldest son. Any educated German of the 19th Century would have read the two most important works of the century: â€Å"Communist Manifesto† and â€Å"Capital† writ ten by Karl Marx. In summary, what Karl Marx was trying to advocate is the forsaking of self-interest among entrepreneurs and workers in their quest for monetary profits, instead both parties should collaborate as a collective unit in achieving communal benefits where a man’s gain will not be another man’s loss (Patterson 2009). During the period where destitute and suffering prevails, the Utopian theory of Marxism were alluring to the masses; including Weber. However, given his critical nature, Weber discovered the fundamental flaws of generalisation in Marxist’s theories; the absence of actual steps to achieve the desired outcome. With the intention to prove the functionality of Karl Marx’s theory, Weber began to formulate concrete steps to identify individuals’ motivations at work and suggestions on how to improve the societal well being (ed. Wiley 1987) which are reflected on his publication of â€Å"Economy and Society† Relevance to Management Today In the 21st century, bureaucracy has become the corporate culture of large organisations. The system has been a darling in the business arena due to the ease of its implementation, which readily provides a hierarchical framework for governance. Albeit its popularity, formal communication has always been a problem associated with bureaucracy (Wallace 1998). According to Welch (2005, p. 115), ‘hierarchies tend to make little generals out of perfectly normal people who find themselves in organisations that respond only to rank’. However, the underlying problem of bureaucracy is never with the theory itself, but rather the failure of modern managers to rationalise that the system are built upon human relationship. In order to resolve the existing problem, one have to understand that business management is not solely about delegating task and supervision of the employees under a stipulated framework. Instead, success is greatly dependent on ‘who manages and motivates’ the employees (Drucker 2006, p. 56). With reference to Drucker (2006, p. 60), ‘Employees may be our greatest liability, but people are our greatest opportunity.’ The ideology was well adopted by Anita and Gordon Roddick of â€Å"The Body Shop†, who had successfully unleashed the potential of their workers; with the creation of a strong sense of belonging and camaraderie; resulted from the company strong mission and values which focuses on human relations (Tomer 1999). Therefore, one could contest that the success of a manager, are associated with his or her foresight to set visions and missions. Followed by the ability to garner support from the worker and lastly to motivated them in achieving the objectives. In relation to Max Weber’s theory, the idea is what we known as charismatic leadership. Although charismatic leadership has been the ideal form of management style, researchers of organisational behaviours have noticed that it may not be the best approach for adoption. The reason for such an argument is that charismatic leaders are rare gems within the labour market. In order to resolve the issue, a modified version of charismatic leadership known as transformational leadership was introduced as the new frontier. Unlike charismatic leadership, transformational leadership is a set theory which focuses on how different leaders lead and inspire (Mcshane and Travagoline 2007), which are widely used to developed business leaders of tomorrow. Conclusion In retrospect, Max Weber’s penetrative ability to analyse human behaviours, is the reason for his theories to remain highly relevant and widely adopted by modern managers of today. However, as discussed earlier, the theories must not be seen as separate and independent entity. Instead, managers must first understand the nature of Weber’s theories in relation to their respective organisations. Followed by the need to anticipate and rationalise the possible problems that might arise from the application. Only then, may the managers tailor a set of solutions in accordance to the existing need and requirements of the organisations. Reference List Burbank, J & Cooper, F 2010, Empires in World History: Power and the Politics of Difference, Princeton University Press, New Jersey. Casteel, P.D 2009, ‘Weber and rationalization’, Research Starters Sociology, pp. 1-5. Drucker, PF 2006, Classic Drucker, Harvard Business School Publishing Corporation, Massachusetts. Gerth, HH & Mills, CW 1982, From Max Weber: Essays in Sociology, Routledge & Kegan Paul Ltd, Padstow, Cornwall Kohut, TA 1991, Wilhelm II and the Germans: A Study in Leadership, Oxford University Press, New York, viewed on 10 February 2011, Marx, K 1970, German Ideology, The Electric Book Company Ltd, London, viewed 9 February 2011, McShane, S & Travagoline, T 2007, Organisational Behaviour on the Pacific Rim, McGraw Hill Australia Pty

What is the nature and importance of decision-making in investment - Free Essay Example

Sample details Pages: 3 Words: 812 Downloads: 10 Date added: 2017/06/26 Category Finance Essay Type Cause and effect essay Did you like this example? I agree that right decision in investment is the first step to success and vice versa. Very important if decision-making process rely on scientific methodology of thinking and analysis to invest specific resources for certain period of time with considering of risks and uncertainty, and also important form the point of view that to set approaches to achieve these objectives, where the success in these tasks are limited by how much decision-makers are follow scientific method to collect information needed to take a decision, important also because it gives opportunity to evaluate expected revenue from all proposed investment options, and to select the appropriate investment that comply with objectives of organization and to enable decision-makers the opportunity to chose from well studied selections of investments. Don’t waste time! Our writers will create an original "What is the nature and importance of decision-making in investment?" essay for you Create order Its important also because it consider for the concept of investment choices and chances, qualification and experience, convenient (that to chose the right and suitable investment), and to aware for diversify the investment risks, all these determinants makes the right decision in investment is a master key of success, because it is very easy to decide of investment but if is it the right one? Principles of investment decision: The most convenient strategy of investment that one consider basically on priority of investors according to their view about business which usually affected by many factors as profitability which determine by rate of return, and liquidity and certainty that rely on how much business resist against risks. But decision-making process should also consider for investment determinants: Interest rate: with its indirect relation with investment according to economic concepts on investment (opportunity cost) Capital marginal efficiency: represent the marginal productivity of invested capital and also defined by return on invested capital. Scientific and technological development: what huge development in technology is offers new investment opportunity and assist the existed one with pivotal facilities on communication and software, since computer and internet be as revolution in business. Risk rate: when we classified investors for three categories, as risk avoiders, risk seekers, and those in between the two categories. Economic and political settlement on investment climate: the clear example is Iraq today compare to Iraq before first Gulf war 1991. Others factors: society awareness with importance of save and investment with attainability to active financial market. The importance of trade-offs between investment projects To use of scarce resources should follow a very proper and rational decision of how to invest these resources with lowest wastes possible, that by use of all means of comparative advantages through scientific approach to search for appropriate investment that able to ably, then to prepare the scheme/s bases by studying capital required, costs estimation, size, location, technologies needed, expected demand etc. Trade-offs between investments choices as fateful decision must based on comprehensive and very precise steps and should consider for all pros and cons of evaluation measurements, and use the best appraisal standards between investment choices. Investment appraisal methods These appraisal methods are categorized in two groups, the first one is the un deducted profitability standards in certain conditions, first one is the accounting rate of return ARP, with no consideration for tax and depreciation this method give feasibility of investment by compare the result of ARP and market interest rate, investment can be acceptable and feasible when ARP is bigger than Interest rate, second is payback period PP, as short as period to return capital of investment as investment is more feasible, period of return calculated by divide primary investment costs by annual net cash flow, this method is widely used worldwide as all information required to run is available and also because this method is more appropriate for investment in fluctuated conditions with high levels of uncertainty, this method also criticized as it neglect the profits after return of capital because it focused only on period that investment could return the capital, neglects the time value of m oney when it is not deal with time of cash flow. Deducted profitability standards, as Net present value NPV, the method characterized as logic and precise added to its consideration to deduct cash flow in order to determine the present value, this method uses in international financial organization as appraisal to evaluate investment, the method criticized as it consider only for achieved return and doesnt consider for the capital amount invested to create that returns, the last method is the internal rate of return IRR, this method still adopted by international monetary fund, world bank to evaluate investment and to give loans, the standard of this methods based on rate of discount that when in flow of cash is equal to out-flow of cash, which means the discount that value investment to zero, the method also criticized as the expected cash flow according to the IRR invested usually with the same discount price, the matter is not logic in grand investment where high interest rates usually adopted.