Capital Structure and Corporate Decision Making: The Role of Compensation Plans on Managerial Decisions in Relation to Stock Performance in the Financial Markets
This dissertation attempts to answer the research question as to whether compensation plans provide better incentives for managers to take risks and increase stock performance in financial markets by corporations. Objectives aimed at examining whether compensation plans influenced managerial decisions and overall future stock performance in corporations. Another objective assessed effectiveness of compensation plans towards managerial risky decisions and performance. The author’s central argument was that compensation arrangements and efficient market information functionality motivated managerial decisions that increased future stock performance in corporations. The research methods adopted comprised of qualitative research methods that linked past evidence, theories and research works by other scholars to reaffirm or refute previous theories.
The methodology maintained an empiricist paradigm and research that made sense through objectivity realised from collected data. The models sought explanations and predictions with an aim of confirming, or substantiating relationships, as well as assembling generalisations on theoretical frameworks. Qualitatively, trends, gaps and opportunities were critically examined using desktop appraisal of secondary literature, documents, journals, books and reports. Content analysis method detailed systematic assessment of substances in specific materials aimed at identifying patterns, themes, or biases.
The review finds consistent literature to demonstrate that indeed compensation arrangements contribute to performance by managers. Organizations that link compensation plans with individuals could attract egoistic kind of CEO. Extrinsic incentives, particularly money, correlated with the largest productivity in terms of stock performances. Skills-based compensation plan now forms the new trend when identifying potential CEOs. Additionally, when designing compensation arrangements, one should balance with conflicting objectives by the shareholders, executives and corporations. What worked for firm A cannot be assumed to work for firm B because each corporation is distinct in size, philosophy, values and objectives.
To examine whether compensation plans influence managerial decisions and overall stock performance in corporations
To assess effectiveness of compensation plans towards managerial risky decisions and performance
1 – Introduction
Statement of the Problem
2 – Literature Review
Does Compensation Plan and Risky Decision Taking Translate to Better Performance?
The Role of Financial Markets in Managerial Decision Making
Forms of Compensation Plans
Effectiveness of Compensation Plans, Risky Managerial Decisions and Performance
3 – Research Methodology
4 – Research Findings
The Hard Facts
Why Compensation arrangements and Performance Metrics?
Short and Long-term Bonus Measures
Human Resource Methods
The Bogey Plan
Relative Performance Evaluation (RPE)
Informational Function of Managerial Decision Making by Financial Markets
The Correlation between Compensation Plans, Risky Decision Making and Performance
Reasons for compensation plans
Reasons against compensation plans
Compensation arrangements and its Effectiveness towards Performance
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An m-commerce (mobile commerce) business model allows customers to complete every steps of the commercial transaction by utilising mobile phones rather than visiting to the physical or brick and mortar store. The experts of technology predict that the mobile wireless communications by 2020 are possibly to be available to anywhere and anyone throughout the globe at very low cost. But it is important to develop and maintain the trust and satisfaction of customers as well as reducing their risks involved in online payments and transactions. It is specifically true in case of cross-border consumption, as less familiarity with the overseas systems and policies makes it more complex for end users to comprehend their rights and easily use mobile devices for online purchasing. In this regards, the report here is inculcating about development of m-commerce by scrutinising the enabling tools, the mobile commerce impact on the business world and the evolving battle of Android and Apple IOS. Also, the online security issues and ethical and legal concerns for the sellers are discussed at the end.
Use of m-commerce technology and its effects on future retailers
Systems and devices based on mobile techniques are now a part of daily life. These systems and devices include pagers, cellular phones, two-way radios, cordless telephone, remote systems of car locking, baby crib monitors, a system of wireless networking, electronic monitoring devices for parolees and GPS (global positioning system) based maps and locators. Sometimes such systems and devices facilitate undertaking existing activities more efficiently and effectively; at other times, they also allow completely distinct and novel activities (Sahaand Mukherjee, 2003).
The advancement in wireless techniques increased the users of mobile phones and given pace to rapid development of the economy with the effective utilisation of such devices. A type of e-commerce, i.e. dealing through mobile terminals is developed, which is referred to mobile commerce. According to Sadeh (2002) m-commerce more widely characterises as the emerging services and set of applications that can be accessed by people from their smart and internet enabled cell-phones. Basically, the m-commerce occurs in a strategic platform, which is referred to a ‘mobile portal’. There fourth-generation (4G) and third-generation (3G) systems of mobile communication provides a high level of commonality of global roaming capability, which is supporting a wide multimedia and internet services and applications with higher rates of data (Sadeh, 2003).
Due to its intrinsic characteristics, like personalisation, ubiquity, dissemination and flexibility, the m-commerce promises unprecedented market potential of business, high profitability and great productivity. The crux of e-commerce revolves around the idea to reach employees, suppliers as well as customers regardless of places where they are situated. It is about transferring correct information to right place at an exact time. Such mobile commerce flexibility is made possible through the convergence of enterprise applications, internet and wireless techniques (Siau, Ee-Peng and Shen, 2001).
Also, the mobile explosion over last some years has been surprising. It is expected that in the current year around twenty billion of cell phones will be sold. It is not just there is increasing production of mobile phones rather the human being is increasingly relying upon them. In fact, in US there are nine out of 10 customers keeping their mobiles phones 24/7 in reach. It has great ramifications for the retailers, specifically for the online commerce, where 30% of US e-commerce already accounts for m-commerce and is estimated to develop 300% quicker than the traditional e-commerce. The individuals rely on their cell phones all through the day. In actual fact, 91% use their phones while accomplishing some other tasks (Kumar, 2016). Since, the human beings are becoming more reliant on the mobile devices; they are expecting to get exactly what they required in the period when they actually need it. Such mobile mind-set of customers’ presents for the retailers ‘unprecedented opportunities to engage with their clients on cell phones and which also enables the brands to give their consumers exactly what they require instantly.
However, there is a challenge for several retailers that well-known approaches to adapt desktop experiences to cell phones, i.e. an appropriate Web design fall short when it comes to contextual experiences delivery. In order to keep up with the need of their customers during their smart phone moments, retailers need to solve response limitations, for instance, by MEO (mobile experience optimisation) on the top area of their responsive websites (Rigby, 2011).
The retailers are also losing $18 billion on annual basis because of the abandonment of their shopping cart. Moreover, it has been shown by research that over 2 out of 3 users who add any item in their online shopping cart just leave without actually buying it. Even the numbers are worse on smart phones where the rates of conversion are 70% less than the desktop. But 2015 was considered as a pivotal period for the shopping by using mobiles. For instance, in the season of holiday, smart phones play an important role than ever, with 82% improvement in revenue due to the 45% increase in traffic on mobile. In fact, the mobile phone generates 57% and more traffic and nearly 30% revenue during the holidays (De Silva, 2015). Moreover, with m-commerce expected to increase more quickly than the traditional e-commerce, the more retailers will focus on executing a seamless experience of checkout in the coming period.
Figure 1: Monthly US visitors across retail websites. (Source: Smith, 2014)
The concept of mobile commerce will possibly emerge as a main focus of the telecommunication sector and the business organisations in the immediate future. The experience of offline shopping covers huge range of emotions by comprising several forms of social interactions with human beings (Tauber, 1972). On the contrary, the experience of online shopping might be viewed as lacking sociability and human warmth, as it attempts to be more anonymous, automated and impersonal (Wangand Emurian, 2005). The experiences attained while shopping comprise positive emotions that have been linked to several important results, like increased time spent at the store, increased spending and improved level of purchasing (Jones, 1999). Moreover, the social aspects of shopping have been considered as the main contributor towards customers’ favourable connection with the retailers.
A significant challenge is faced by the online sellers in making their virtual outlets socially rich as well as in making their services and products appear eye catching to the target customers (Kim, 2002).
In future, it would be hard to earn maximum profits and retailers will be challenged to become more smart venders. Also, they will be required to identify unique methods of reaching customers and more effective methods of measuring their marketing attempts performances. Furthermore, mobile will cease being a developing channel of marketing and will become essential for the retailer to market their brand and measure themselves. Therefore, those who will be fail to integrate and adopt today’s customers’ mind-set for mobile will become the casualties of shift in next digital paradigm (Fulgoniand Lipsman, 2016).
Figure 2: US retail sales growth rate by channels. (Source: McDermott, 2014)
How the battle between Android and Apple IOS will evolve in next five years
In the year 2007, Apple released iPhone based on their iOS mobile operating system. A year later after the grand reception of the revolutionary smart phones by Apple, Google launched Android mobile operating system under an open source license. Since then, Apple and Google have been engaged in a fierce competition for the mobile phone market share around the world. A broader view suggests that the battle between the two has been resulted in offering of more and more alike services. It happened due to borrowing features from each other’s and providing basic Smartphone functions like web browsing, app permissions and running, file sharing in similar ways. Though in recent times, the customer preference to select one of the two primarily depends on add on services and apps that comes along with them ranging from email, cloud services to VR and even mobile payment solutions (Tilson, Sorensen and Lyytinen, 2012).
One of the key differences between Android and iOS remains that Apple’s applications are tied to and updated at the same time as the mobile OS, whereas Google’s applications update are customizable and left on the choice of customers. Another key difference in the line is that use of Android applications across several devices such as Smartphone, laptops, tablets or desktops is smooth whether customers use these devices from the same manufacturer or not. On the other hand Apple doesn’t like their customers to switch the manufacture because Apple produces all these devices itself. Therefore, it’s easier to work across these devices if made by Apple and harder to get out of the Apple’s ecosystem.
Apple took similar approach with the iPhone as they took with their desktop operating system Macintosh. They launched a revolutionary device for a much higher price than existing products with outstanding features and capabilities. On the other hand, Android took approach similar to that of Microsoft and became like “Windows” of the smart phone operating system. The open source license enabled a lot of manufacturers to offer low-cost devices with same features as Apple. As a result, Google’s Android compete Apple’s iOS with its increased percentage of market share in year 2012.
Though, studies suggest that with respect to e-commerce transactions, Apple’s iOS is still ahead of Android in developed economies and average order value around the world. Even though, top choice of customers in m-commerce remains Apple but in reality the Android adoption has increased over the years. With respect to current annual traffic growth, Android’s rate 56% is ahead of Apple’s 33%. Also, the customers are using cell-phones and tablets to shop across mobile sites and apps that ultimately create challenge to the mobile strategies of retailers.
Consumers are also using both tablets and smart phones to shop across apps and mobile sites, which adds complexity for retailer mobile strategies. These trends suggest that, in the longer term it is expected that Android customers will become highly valuable and companies around the globe which offers m-commerce services would design their products specifically for Android customers. The online venders are required to explore such trends and change their m-commerce approach to create a strong presence on every device and platform with a reliable experience to users (Kenney and Pon, 2011).
The potential customers of mobile payments services are from the 25 to 34 years of age group, with 78% in this age group. Furthermore, the most purchased services are music, which is followed by books, travel tickets, electronic products and apparel. Study also reveals that mobile purchase choices is more dependent on convenience rather than price because users are selecting high-value items like hotels, train tickets and clothing together with the economic products. In conclusion it can be said that consumers are growing more comfortable shopping on mobile and Apple mobile payment buyers spend more time and money than Android mobile payment buyers.
Security, legal and ethical issues in m-commerce
The e-commerce implementation comprises several legal issues. These issues can be classified in varied manner, such as jurisdiction over trades, internet gambling and encryption policies. On the contrary, the ethical issues are concerned with what is considered to be wrong and right. There are many significant policy issues raise by the mobile commerce, specifically in relation to inadequate disclosure of information, unsolicited sales and minor protection. Besides this, SMS spam and unauthorised use are some additional issues (Mehra, 2015).
A high risk of crime is being carried by the wireless network. Hackers can erase and steal data and information from the cell-phone devices and disrupt the traffic on wireless network by overloading it with phone messages and information. The mobiles are also infected by virus, which cause them to randomly switch of or erase all information and addresses from it. Based on the surveys of Georgia Tech (1997 and 1998), the internet face most significant issues in relation to privacy, taxation, encryption, navigation and censorship (Niranjanamurthy and Chahar, 2013).
In particular, the privacy has long been a social and legal issue in many countries. With the increasing and broad use of e-commerce and internet, the privacy issue becomes more challenging. In this regards, an organisation known as the Electronic Privacy Information Centre is constantly working on safeguarding the privacy (ROTENBERG et al., 2003). The e-commerce security is an important portion of Information Security framework and is especially pragmatic to the constituents that creates impact on the electronic commerce including Data security, Computer Security and several other wide Information Security framework realms. The security at e-commerce has its own specific nuances and is considered as the key visible security constituents, which influence the end user by their day to day payment transactions with the organisation. Therefore, security and privacy in today’s internet era are the main consideration for e-commerce and m-commerce technologies (Massoud, n.d).
In addition to above, the privacy concerns in m-commerce have been also identified in revealing less trust in several contexts, like commerce, electronic health records, technology of e-recruitment and social networking that directly influence the response of end-users. Furthermore, the main and constant concern for the online retailers is security that restrict organisation and customers engaging via e-commerce. Also, the web e-commerce applications handle payments by electronic transactions as well as using debit and credit cards and online banking and PayPal are closely linked with the compliance issues (Mennecke and Strader, 2003).
Moreover, shopping online through websites includes several steps to buy a commodity with complete security and safety. The online mobile transactions require customers to reveal a large number of sensitive personal data to the seller by placing themselves at a great risk. Thus, comprehending and gaining trust of customers is significant for the m-commerce regular development. Also, the function of electronic payment in online shopping is the main issue to ensure that customers are convenient and fast as well as to ensure the parties secrecy and safety to a transaction that requires a complete electronic systems of trading (Caudill and Murphy, 2000).
It can be concluded that e-commerce is mainly considered as the products selling and buying over the internet, but any transaction which is solely accomplished through electronic systems can be called as e-commerce. The concepts of m-commerce and e-commerce is playing a great role in today’s retail businesses, as people utilising mobile devices for their transactions and purchases are regularly increasing around the globe. However, the e-commerce is not free from several securities, ethical and legal issues, due to the unauthorised use, destruction, alteration and access over the retailers’ site. The fraudsters are continuously looking to take benefit of online shoppers, who are liable of making novice errors.
Some common mistakes that leave customers at risk include shopping on insure websites, leaving the devices open to viruses and providing too much sensitive or personal information. Therefore, the online retailers are require to apply proper ethical standards to their online transactions and selling practise, in order to gain customers trust and offer them safe and secure shopping method. It is because all the business aspects are greatly affected by ethics. Also, it creates impact on the brand image and subsequently the advertising, marketing and selling functions of the business. Thus, in order to keep up and increase revenue with growing mobile uses and online shopping behaviours of customers, the sellers needs to consider code of conduct related to m-commerce operations.
Caudill, E.M. and Murphy, P.E., 2000. Consumer online privacy: Legal and ethical issues. Journal of Public Policy & Marketing, 19(1), pp.7-19.
De Silva, G.H.B.A., 2015. Determinants of Online Buying Behavior.
Fulgoni, G.M. and Lipsman, A., 2016. The Future of Retail Is Mobile. Journal of Advertising Research, 56(4), pp.346-351.
Jones, M.A., 1999. Entertaining shopping experiences: an exploratory investigation. Journal of retailing and consumer services, 6(3), pp.129-139.
Kenney, M. and Pon, B., 2011. Structuring the smartphone industry: is the mobile internet OS platform the key. Journal of Industry, Competition and Trade, 11(3), pp.239-261.
Kim, Y.K., 2002. Consumer value: an application to mall and Internet shopping. International Journal of Retail & Distribution Management, 30(12), pp.595-602.
Kumar, H., 2016. Mobile Commerce Trends to Buy Into. The Experience, M-Commerce.
Massoud, S.L., n.d. Ethical and Legal Issues in E-Commerce.
McDermott, J., 2014. The future of retail in 5 charts.
Mehra, J., 2015. E-commerce: Opportunities and Challenges. The International Journal of Business & Management, 3(1), p.182.
Mennecke, B.E. and Strader, T.J. eds., 2003. Mobile commerce: technology, theory, and applications. IGI Global.
Niranjanamurthy, M. and Chahar, D.D., 2013. The study of e-commerce security issues and solutions. International Journal of Advanced Research in Computer and Communication Engineering, 2(7).
Rigby, D., 2011. The future of shopping. Harvard Business Review, 89(12), pp.65-76.
ROTENBERG, M., BUTLER, A., MCCALL, G., HORWITZ, J. and HUSBAND, D., 2003. Electronic Privacy Information Center.
Sadeh, N., 2003. M-commerce: technologies, services, and business models. John Wiley & Sons.
Saha, D. and Mukherjee, A., 2003. Pervasive computing: a paradigm for the 21st century. Computer, 36(3), pp.25-31.
Siau, K., Ee-Peng, L. and Shen, Z., 2001. Mobile commerce: promises, challenges, and research agenda. Journal of Database management, 12(3), p.4.
Smith, C., 2014. THE E-COMMERCE REPORT: Mobile Is Giving Traditional Retailers A Chance To Bounce Back These Holidays.
Tauber, E.M., 1972. Why do people shop. The Journal of Marketing, pp.46-49.
Tilson, D., Sorensen, C. and Lyytinen, K., 2012, January. Change and control paradoxes in mobile infrastructure innovation: the Android and iOS mobile operating systems cases. In System Science (HICSS), 2012 45th Hawaii International Conference on (pp. 1324-1333). IEEE.
Wang, Y.D. and Emurian, H.H., 2005. An overview of online trust: Concepts, elements, and implications. Computers in human behavior, 21(1), pp.105-125.
I do hope you enjoyed reading this post on the evolution of M-Commerce. There are many other titles available in the IT Dissertation Collection that should be of interest to information technology and computer science students and information technology professionals. There are many dissertation titles that relate to other aspects of information technology such as Network Security, Information Systems, ERP, Software, IT Infrastructure, Programming, Telecommunications, eLearning, eCommerce, Wireless Networks and Systems Analysis. It took a lot of effort to write this post and I would be grateful if you could share this post via Facebook and Twitter. Feel free to add your thoughts in the comments section. Thank you.
Business Is the Art of Predicting the Future and Getting Benefit from It
“The art of predicting the future and getting benefit from it” in business can be narrowed down to one term which is business forecasting. Business forecasting is the backbone of a successful business in every business venture. According to different scholars, the management of business should always make predictions based on overall running of the business, sales and finance handling (Hailey 2007).
Business Forecasting is described as the art and method that can be used by the business owner or shareholders to make a prediction of future business activities basing it on the accuracy of your data. The information obtained can be used in the determination of future trends in finance performance, sales performance and also customer behavior. Most businesses need business forecasting, and usually, they are done on a quarterly basis, but some can prefer forecasts made on a monthly basis (Evans 2009).
Types of Business Future Predictions (Forecasts)
General business outlook. Each and every business needs a forecast to is undertaken. This is mainly to foresee the likely changes that might occur shortly. There are certain conditions that are always present in a community that a certain business operates. Some examples are; controls, population, fiscal policy, political conditions, and the national income. Due to the presence of these factors, it is necessary to make future predictions of the business (Hailey 2007).
Sales forecast. The sales department is a major determinant of success in a company. Due to this reason, sales forecast should be carried out with precaution and due care to gain business success. In every business, sales forecasting is considered as the to notch factor in planning and a major aspect to consider in an organizational setting. Plans and policies made by the business to maximize their profits are obtained from expected sales so whether sales forecast is carried out annually or yearly; it is the main factor to future business plans.
Capital forecast. Every business in operation must have financial plans. Capital should be a factor to be determined to meet present and future needs of business. Forecast based on business capital requirements is a necessity and is considered as the primary step in every organization. Accurate forecasts greatly help an organization to employ capital fully and get optimum returns from their investments (Morlidge 2010).
Major Merits of Future Business Predictions (Forecasts)
Promoting a new business in the market. Making future predictions is one vital factor that has a huge contribution when it comes to setting up of a new business. This is because starting a new business is not as easy as it is perceived by most people because business is subject to risks and uncertainties. By carrying out forecasting, the business promoter finds out if the probability of the business thriving and if the business has high competition. After making these predictions, the business promoter assembled all the necessary resources and based on the forecasting made; the business is subject to success or failure (Morlidge 2010).
Formulation of a plan. Proper business forecasting plays a major role in business planning. Major business plans require proper forecasting in business thus making it an essential aspect in consideration. Therefore, as a business person, it is always important no note that adequate planning, whether long-term or short-term highly depends on forecasting.
Estimation of financial requirements. Estimation of business finances is a major business concern because in running a business, capital is vital. Business finances can be characterized by cash used to start the business, the money stored in the bank and cash used to run the day to day operations of the business. The presence of working and fixed capital is based on sound financial forecasting.
The viability of decisions made by management. Correct management decisions highly depend on the accuracy of forecasts made. As described by various scholars, the administration is a decision-making process, and management has the responsibility of making decisions which are uncertain. In the running of business whether small or large, certain changes might occur, e.g. personnel changes and unforeseen contingencies. Decision making by management is a process that goes on throughout the life of business (Evans 2009). Therefore, forecasting is relied upon in matters of production planning and resource allocation.
Business success. Proper forecasting helps the procurement department of the business to procure the necessary and necessary raw materials based on the business needs and future needs. The accuracy of sales forecasting is essential in making budgets. When a business fails to make accurate sales forecasts, it becomes difficult for the business and management to figure out how much production should be done (Hailey 2007).
As discussed in this paper, prediction of future is a vital step that every business has to undergo. Through future prediction, business is assured to thrive and reach its set limits. Many advantages have been realized by businesses which have taken the step of making good and proper business forecasts. On the other hand, lack of prospects might lead to a drastic failure of business. All the discussed merits are some out of the may many benefits of making future predictions of business.
Evans, Michael K. Practical Business Forecasting. New Jersey: John Wiley & Sons, 2009.
Hailey, Linda. Your Business, Your Future: How to Predict and Harness Growth. Crows Nest, New South Wales: Allen & Unwin, 2007.
Morlidge, Steve. Future Ready: How to Master Business Forecasting. New Jersey: Wiley, 2010.
I hope you enjoyed reading this post on Business Forecasting and Future Predictions. There are many other titles available in the business management dissertation and MBA dissertationcollections that should be of interest to MBA students and academic professionals. There are many dissertation titles that relate to other aspects of business such as strategy, leadership, international business, mergers and acquisitions to name a few. It took a lot of effort to write this post and I would be grateful if you could share this post via Facebook and Twitter. Feel free to add your thoughts in the comments section. Thank you.
Diversity, Adaptation, and Inclusion in Nursing Education
This annotated bibliography will present analysis and review of some sources relating to adaptation, diversity, and inclusion in nursing education. Globalization has resulted in nursing schools experiencing diverse students’ population with learners who are culturally and linguistically diverse. The annotated bibliography will present measures that would enhance the adaptation of learners from culturally and linguistically diverse setting, challenges faced by these students and measures to improve the learning experience and performance. Also, the annotation will address diversity issues, policy implications and intervention measures for promoting workforce diversity through a diverse learning environment for nursing learners.
Gerrish, K. (2004). Integration of overseas Registered Nurses: Evaluation of an Adaptation Programme. Journal of Advanced Nursing, 45(6), 579–587.
Gerrish (2004) conducted a study to investigate adaptation program for nurses working oversea. These nurses normally experience challenges before adapting to new environment featured by different cultural setting and operational standards for nurses. With the current globalization trends, there has been increasing oversee nurse recruitment to address the significant staff shortage in United Kingdom healthcare sector that has resulted in theemergence of adaptation programs for nurses from other countries seeking experience and allow them to be acknowledged by the Nursing and Midwifery Council. Gerrish (2004) article collects data from different previous studies on independent evaluation of the adaptation programs for the overseas Registered Nurses who are offered by large acute healthcare facilities. Basing on the review, the study reported evaluation programs by focusing on objectives, overall success rate and outcomes from the stakeholders’ perspective.
Gerrish (2004) integrated a pluralist evaluation research model developed to facilitate the identification of the criteria that interested parties used in the judgment of success rate of adaptation programs. After identification of the success of the program, it is used in judging the program in question. Due to the nature of the study, a qualitative research method is applied to address the challenges faced in implementation of the program and measures to address the success of the program. A focus group approach is preferred in data collection where in-depth interviews were set to collect the data for analysis. Gerrish (2004) targeted oversea nurses, senior nurse managers, educators and ward managers. The study took a period of 12 months to complete data collection where the analysis was done through the development of principles for dimensional analysis. Criteria of success approach were crucial in identifying the views from the stakeholders that guided in the development of overall success of the adaptation program. After the analysis of data, results of the study were developed which helped in creating a holistic view of the adaptation programs in the United Kingdom.
The results indicated that five success meanings were developed comprising of gaining professional registration, reducing the nurse vacancy factor, fitness for practice, promoting the organizational culture that is based on diversity value and equality of opportunity. Gerrish (2004) also found that organizational context, features of their work environment and level of support influences the ease of gaining United Kingdom registration and their integration into the nursing workforce. From the article, Gerrish concluded that developed countries should take into account support for nurses sourced from the global market to facilitate their adaptation to environment featured by different social and cultural settings. This article is crucial in research involving nurses’ sourced from oversea by presenting challenges, opportunities and threats faced by the oversea nurses. The study provides crucial information relating to factors that are essential in enhancing the adaptation of these nurses through the provision of the necessary support. The article is also relevant in presenting different considerations that should be taken into accounting supporting adaptability of these nurses to the new environment.
Jeong, S. Y.-S., Hickey, N., Levett-Jones, T., Pitt, V., Hoffman, K., Norton, C. A., & Ohr, S. O. (2011). Understanding and enhancing the learning experiences of culturally and linguistically diverse nursing students in an Australian bachelor of nursing program. Nurse Education Today, 31, 238–244.
Jeong et al. (2011) conducted a study investigating measures of enhancing learning and performance of nursing students in a culturally and linguistically diverse environment.Nurses and nursing students are faced with the different cultural setting, which influences their adaptation and performance. The article review experience of nursing students in Australia who are from different cultural backgrounds. The challenges do affect not only the nursing learners but also the academic and clinical staff. A pilot study is conducted to review the perceptions from learners’ approach and another school academic and clinical staff perspective. This is crucial in identifying the challenges faced by clinical staff, academic staffs, and learners.
To attain the study objectives, Jeong et al. (2011) applied qualitative research methodology in collection and analysis of data. The article had its target as learners from culturally and linguistically diverse (CALD) backgrounds. The participants in the study comprised of learners classified as CALD who were attending their education in Australian universities. Academic staff who taught CALD learners were also integrated into the research. The study had a total of 18 participants comprising of 11 CALD students, four academic staff members, and three clinical facilitators. Qualitative research is appropriate when investigating aspects that require understanding the feelings and perception of the participants through a face to face interview where in-depth data is collected.
Jeong et al. (2011) developed interesting findings relating to measures that can address challenges faced by nursing students, clinical staff and educators with experience in learning or teaching in culturally and linguistically diverse environment. Focus groups were integrated into data collection process to enhance the quality of data collected. After the research Jeong et al. (2011) found that there were four themes crucial in addressing challenges under investigation. These themes comprise of English language competence level, isolation feelings and perception, limited opportunities in the learning process and inadequate of the university support. The effects of these challenges comprised of financial, social and intercultural contexts and political setting that learners experience. The article is significant when addressing the challenges faced by students from culturally and linguistically diverse backgrounds.
Additionally, the article utilizes an adequate number of participants which helps in identification of appropriate research data for analysis. The research is crucial to educators, clinical staff and policy makers relating to insights that facilitate the development of effective learners’ adaptation initiatives to promote an efficient environment for all culturally and linguistically diverse learners. The sample size for this article was efficient considering that qualitative studies require in-depth analysis, which is possible with a small sample of participants. The choice of research method in the article presents an opportunity for addressing challenges that students may suffer in silence, which would lower the productivity and performance of nursing students during practice. The article forms a foundation for further studies on the perspective of adaptation initiatives for learners in a cultural and linguistically diverse environment to aid both learners and academic staff.
Boughton, M. A., Halliday, L. E., & Brown, L. (2010). A tailored program of support for culturally and linguistically diverse (CALD) nursing students in a graduate entry Masters of Nursing course: A qualitative evaluation of outcomes. Nurse Education in Practice, 10, 355-360.
Boughton, Halliday, and Brown (2010)conducted a study investigating the significance of support programs for learners from culturally and linguistically diverse setting. The article defines the common support programs initiated to address the challenges faced by learners and teaching staff. Nursing learners enrolled for a program in culturally and linguistically different environment experience challenges that affect their learning outcomes and performance. The target population in the article were nursing students who were enrolled in 2-years accelerated Master of Nursing program from the faculty of nursing, University of Sydney. Also, the article aimed at examining the pedagogical aspects that affect the delivery of educators and nursing clinicians. The research identified gaps in the literature relating to the integration of CALD training in the learning process to improve the learning outcomes of learners from culturally and linguistically diverse environment.
Boughton, Halliday and Brown (2010) identified that learners from culturally and linguistically diverse settings are sometimes entitled to a program to facilitate their adaptation to the new environment. For the purpose of the article, the authors integrated their research into a program involving CALD interventions that took place during semester 1 in 2008 run by three academic staff members from series of workshops aimed at addressing challenges faced by learners from CALD setting. The article drew findings from both primary and secondary sources taking account evidence in existing literature. Selection of the research participants was on a voluntary basis where a total of 34 participants from different countries who were willing to join the program. A qualitative research method in collection and analysis of data allow the researcher to collect non-verbal feelings of the participants that help in the acquisition of crucial data regarding the participants. The qualitative method requires in-depth analysis that helps in establishing reality concerning the research aim and objectives. Positive results were collected relating to the impact that CALD program had on students’ adaptation to the Australian culture and language. To evaluate the impact, the researchers grouped the participants depending on the benefits that they got from the CALD program regarding enhancing their academic potential, students learning experience and clinical placement initial experience.
In the discussion, Boughton, Halliday and Brown (2010) integrated results from the primary data and critical analysis of existing studies. The in-depth literature review from the article helps in the acquisition of data that from secondary sources, which is crucial in the analysis. Integrating literature review to empirical evidence facilitates in identifying deviation of the primary results by using the previous studies as a datum. Additionally, qualitative studies involve in-depth analysis of data. This method was appropriate for this study to determine the significant impact that perception and feelings have on the research. Furthermore, the choice of the interview as data collection tool facilitates in seeking clarifications from the participants in case of an ambiguous answer and questions during the research process.
Bleich, M. R., Macwilliams, B. R., & Schmidt, B. J. (2015). Advancing Diversity Through Inclusive Excellence In Nursing Education.Journal of Professional Nursing, 31(2), 89–94.
Bleich, Macwilliams and Schmidt (2015)conducted a study investigating the measures of promoting diversity through enhancement of nursing education. With increased global movement of professionals in search of employment and nursing education, there is need to develop a diverse workforce that can serve employees from different cultural settings. However, only a few studies integrate the inclusion during recruitment and retention strategies for the improvement of academic learning outcome. The article addressed the organizational initiatives that promote diversity and inclusion in nursing education as supported by Association of American Colleges and Universities. The article addresses the inclusive excellence that builds an effective learning environment for diverse learners’ needs. There are six strategies for diversity and inclusion that are investigated basing on the authors’experiences, behavioral and structural concerns such as admission processes, community absence, invisibility, tokenism, promotion and tenure, and exclusion. The article was aiming at identifying behavioral and structural adaptations that are within the nursing education setting for the advancement of inclusion and diversity. Identifying different factors that inhibit or enhance an organization with diverse learners is significant in the current study.
The study integrates secondary data retrieved from previous studies in drawing the discussion and conclusions. In-depth analysis of the factors that influence diversity in the nursing education are analyzed. The study integrates step by step procedure of development an inclusive setting for nursing education. The study is crucial in presenting the step-to-step procedure of development of the effective framework for implementation of diversity in nursing education. Bleich, Macwilliams and Schmidt (2015) presented strategies for promoting diversity and inclusivity comprising of improving the admission process, reduction of the inevitability of the underrepresented cohorts, the establishment of support community, enhancing equity in the promotion and the tenure structures, and discouraging tokenism. These initiatives are drawn from different past studies that took into account the crucial elements of diversity.
Even though recent studies play a critical role in the research process, it should be accompanied by empirical results that improve the quality of data presented. Reliance on previous studies maybe misleading since the earlier studies could measure different elements that are not significant in the current study. Despite these challenges in the article, it present information that is crucial in the development of a foundation for more in-depth studies that incorporate primary sources of data. In studies relating to measures of enhancing diversity and principles in nursing education, the article by Bleich, Macwilliams and Schmidt (2015) is crucial in determining gaps in the previous studies that future research should address. In addition, the article could be effective in the presentation of effects of failing to integrate diversity principles in nursing education where diverse cultures are present. Strong self-awareness and self-esteem are crucial for learners within a diverse society to be incorporated into an efficient learning environment and demonstrate effective learning and productive environment.
American Association of Colleges of Nursing. (2015). The Changing Landscape: Nursing Student Diversity on the Rise. Washington, DC: American Association of Colleges of Nursing.
American Association of Colleges of Nursing(AACN) (2015) present review of policy on diversity in American nursing colleges. The report compiles evidence based on recent studies and available policies on the significance of cultural diversity understanding in the nursing workforce in the development of culturally sensitive patient care observing crucial patients’ safety and service quality. The data and analysis are dependent on the U.S. Census Bureau that classified differential cultural settings in the United States where groups that are racially underrepresented forms more than a third of the entire population. The report expresses the commitment of American Association of Colleges of Nursing in promoting diversity and inclusion in all nursing colleges.
The report presents a valuable source of data from primary sources like government websites relating to diversity in nursing education. To ensure the validity of data submitted, the AACN present results of previous reports from reliable sources that cite issues relating to diversity in American nursing colleges.
To address the initiatives by the government, AACN present two reports compiled by NAS in 2004 addressing measures to improve the diversity in the healthcare sector. Also, AACN also reviewed a report by NAS in 2010 on advancing nursing through enhancement of its leadership role through the development of the competent and diverse workforce. The research also presents the trends in changes in the level of diversity across learners undertaking Baccalaureate, Masters,Ph.D. and DNP programs in nursing for the period between 2011 and 2015. Also, the report presents diversity trends across all the states in the US. This helps the future studies in identifying the diversity trends across the American States diversity commitment in promoting the needs of all learners.
Apart from variations in diversity from 2011-2015 and regional diversity levels, ACCN report took into account variations in diversity across programs, which is crucial in informing researchers and policy makers on the degree of diversity in nursing education in the United States depending on the extent of learning. Furthermore, the report presents the diversity on gender-based variations. The report also illustrates the measures that the Federal and local governments would integrate into nursing schools to promote diversity in learning institutions for nurses. From 2006 to 2015, the research cites that there has been a drop in grant funding programs. Understanding these challenges and opportunities relating to diversity in nursing education will enhance in effective decision-making regarding policy interventions appropriate to address the diversity issues in nursing education. This report is essential in developing valid arguments relating to interventions for diversity in American nursing education. The report presents a valuable source of information on trends based on annual grants allocation, gender, and level of study, which will guide the development of policy measures to encourage diversity in nursing education.
In conclusion, the five studies identify the nursing discipline as a complex profession that entails the harmonization of work culture, private life, societal obligations, and work schedule. Collectively, the authors concur that professional nurses and nursing students specialize in a demanding profession. The health care industry demands that the practitioners commit themselves to the responsibilities by preparing to work for extended hours under congested schedules. Therefore, the work environment prompts the governing institutions to consider improving expertise and the support infrastructure in order to enhance the efficacy of the healthcare service providers. In spite of the incongruousness in specific and general objectives, the studies converge into a common point of focus involving manipulating the parameters of interest to improve the performance of nurses. Jointly, the authors view the quality of nursing as a function of dedicated endeavors to establish support institutions, education programs, and cultural learning.
Nurses are mobile in nature as the occupation dictates. The interventions would enable the medical professionals to adapt new environments and avoid culture shock. New work environments expose the nurses to challenges in learning the ways of life of the inhabitants. The situation grows severe in workstations where the health care seekers subscribe to a foreign language. At this point, intervention programs and special education programs tailored to specific settings are vital to improving the performance of the personnel within the restrictive workplace. Additionally, the studies venture into using qualitative approaches to explore the parameters of interest. The commonality portrays a similarity in the five research works highlighting that most elements in nursing are non-quantitative.
As long as the authors agree on the complexity of the discipline, discrepancies emerge pertaining to the most suitable intervention strategies. The influence of the studies on the nursing practice significantly relies on an integrated method of implementing the findings. In other words, the observations made from each of the studies are solely dependent on the contributions of the rest. Furthermore, the authors base the studies on different scopes and parameters. Focusing on culture, education, and support programs exposes the incongruousness underlying the pursuit of knowledge. Through the principal areas of focus, the general objectives of the research works differ considerably from one study to another. The specialization undermines the view of mutual relationships in the rudiments of nursing.
The five articles are exclusively vital in enabling efficient nursing services. The diverse objectives pursued by the researchers present nursing practice as a multi-disciplinary subject comprising of equally important parameters. In a real sense, nursing profession describes a collection of medical subjects that equip the facilitators with immense knowledge essential for dealing with a myriad of scenarios in the healthcare industry. More important are the elements that the articles discuss as significant in enhancing nursing. Education denotes one of the traditional methods of knowledge acquisition. Training remains a viable approach to improve professionalism. Nursing professionals require excellent training to improve the quality of the service.
The education programs enhance the adaptation mechanisms of the medical personnel to various environments. As nurses move from one workstation to another, the environmental setting changes drastically prompting swift adjustment. Cultural learning denotes one of the most vital considerations since nurses interact with culturally diverse populations. The support institutions formulate and implement policies and programs aimed at enhancing the workplace for nursing professionals. Therefore, the articles discuss valuable factors essential for facilitating exemplary therapeutic services.
American Association of Colleges of Nursing. (2015). The Changing Landscape: Nursing Student Diversity on the Rise. Washington, DC: American Association of Colleges of Nursing.
Bleich, M. R., Macwilliams, B. R., & Schmidt, B. J. (2015). Advancing Diversity Through Inclusive Excellence In Nursing Education. Journal of Professional Nursing, 31(2), 89–94.
Boughton, M. A., Halliday, L. E., & Brown, L. (2010). A tailored program of support for culturally and li nguistically diverse (CALD) nursing students in a graduate entry Masters of Nursing course: A qualitative evaluation of outcomes. Nurse Education in Practice, 10, 355-360.
Gerrish, K. (2004). Integration of overseas Registered Nurses: evaluation of an adaptation programme. Journal of Advanced Nursing, 45(6), 579–587.
Jeong, S. Y.-S., Hickey, N., Levett-Jones, T., Pitt, V., Hoffman, K., Norton, C. A., & Ohr, S. O. (2011). Understanding and enhancing the learning experiences of culturally and linguistically diverse nursing students in an Australian bachelor of nursing program. Nurse Education Today, 31, 238–244.
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Economics models are false and so government should ignore their predictions. Explain, discuss and evaluate the accuracy of this statement.
Price Elasticity – Economics models are the tools which economists use to predict future economic developments by measuring past relationships among variables such as household income, consumer spending, employment, interest rates, tax rates etc. and forecasting how changes in some of these variables will affect other variables. An economic model is said to be complete if it can accurately forecast many of the variables future course, however, no economic model can be complete in true sense. There are several forces outside the model that affect the calculation and forecasting of variables. There are two ways by which these outside factors affect the forecasting and economic predictions. The input errors are concerned with inaccurate assumption of outside variables and model errors which explains the deviation of the equation of economic model from the assumption to the actual. Hence, it can be said that economic models are subjective approximations of reality and are designed to explain the observation. Therefore, the model’s predictions should be moderated so that it can accommodate the effect of random data variables (Deming, 2000).
Many researchers believe that economic theories and models simply provide ways to look at systems and determine how changes in variables affect the overall outcome. It also explains advantages and disadvantages of various economic models and systems. However, predictions and subsequent policy decisions are made after following value judgement of policymakers or the government. Therefore, the government should view at economic model only as a framework which provide insight of a contextual theory. More empirical evidence and real life economic parameters should be considered while making policy decisions based on economic predictions (Godley & Lavoie, 2006).
No economic model can perfectly predict the real future. A good example of the economic model’s failure is to predict the reasons for the global financial crisis of 2008. The prevailing economic model was deficient to provide sufficient attention towards the relationship between demands, wealth, and excessive financial risk taking. There were considerable research which had been conducted to uncover the same and also a new behavioural equation was added to the existing economic models. The true test of the new model will happen when it will effectively flag financial risk levels that would need a precautionary policy change. This is an ongoing process which consist of constructing, testing, and revising models and outside forces so that economists and policymakers can predict the future course of economy (Taylor, 2009).
Government neither can overlook economic models’ forecasts nor make predictions completely based on them. It has also been seen that economists seem to put aside political factors outside their equation. Politics among other outside factors is the most important factor that helps to determine the outcome of economic policy. In view of these analysis, it is suggested to use structural models which makes several “what if” economic analysis on several input combinations. In this way, the policymakers would have substantial information on various numerical variables and the forecast can be recalculated whenever required (Diermeier, Eraslan & Merlo, 2003).
Identify estimates of the price elasticity of demand for at least three different products
The “law of demand” suggests that the higher the price of a good, the lesser demand from consumers. This is the fundamental law of all economic models to predict the economic forecasts. In order to predict consumer behaviour in more details, economists use several techniques which evaluate the sensitivity of consumers’ demands with respect to changes in price. The most commonly used technique is known as “price elasticity of demand”. In simple terms, it is the proportionate change in demand given a change in price. For example, if a one unit decline in the price of a product produces a one unit increase in demand for that product, the price elasticity of demand is said to be one (Green, Malpezzi & Mayo, 2005).
Numerous studies suggest that the majority of consumer goods and services falls in the price elasticity of between .5 and 1.5. Essential products to everyday living, which have fewer substitutes, typically have lower elasticity for example, staple foods. Since, staples such as cereals are necessities in the diet, and are usually cheaper so that people safeguard their income for spending on such essentials when prices increase. Furthermore, lower income households tend to have higher price elasticity for food items than high income households. As food products occupies a large share of total income in these households, price changes have a substantial impact on the allocation of budget. On the other hand, magnitude of the elasticity for animal source foods such as fish, meat and dairy are higher than staple cereals as these are considered as luxury food items and there are always many substitutes available for consumption of these food choices (Andreyeva, Long & Brownell, 2010).
Goods with many substitutes, or are considered luxuries as are not essential, or whose purchase can be easily postponed, have higher elasticity. For example, the demand of automobile is considered as elastic as there are three kind of substitution takes place. In response of a unit price change, consumer of a new car can delay the purchase, or can choose to purchase another category of car or chose not to buy a new car and use another mode of transport. Furthermore, in case of buying a particular model of car, it would be highly elastic demand as there will be a lot of substitutes. On the other hand, demand for cars in rural areas would be inelastic over the longer run. Because there are very few alternative mode of transports available (Parry, Walls & Harrington, 2007).
Another example can be taken from health care services, where the demand for health care expenditure is found to be price inelastic. A range of price elasticity estimates it to be -0.17, which means that a one unit increase in the price of health care will lead to a 0.17 unit reduction in health care expenditures. Moreover, the demand for health care is also found to be income inelastic as it is in the range of 0 to 0.2. The positive sign of the elasticity suggests that there will be increase for health care demand as income increases, however the low magnitude of the elasticity indicates that the demand response would be relatively very small (Duarte, 2012).
Andreyeva, T., Long, M. W., & Brownell, K. D. (2010). The impact of food prices on consumption: a systematic review of research on the price elasticity of demand for food. American journal of public health, 100(2), 216-222.
Deming, W. E. (2000). The new economics: for industry, government, education. MIT press.
Diermeier, D., Eraslan, H., & Merlo, A. (2003). A structural model of government formation. Econometrica, 71(1), 27-70.
Duarte, F. (2012). Price elasticity of expenditure across health care services. Journal of health economics, 31(6), 824-841.
Godley, W., & Lavoie, M. (2006). Monetary economics: an integrated approach to credit, money, income, production and wealth. Springer.
Green, R. K., Malpezzi, S., & Mayo, S. K. (2005). Metropolitan-specific estimates of the price elasticity of supply of housing, and their sources. The American Economic Review, 95(2), 334-339.
Parry, I. W., Walls, M., & Harrington, W. (2007). Automobile externalities and policies. Journal of economic literature, 45(2), 373-399.
Taylor, J. B. (2009). The financial crisis and the policy responses: An empirical analysis of what went wrong (No. w14631). National Bureau of Economic Research.
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