Economic Organization and Transaction Costs Essay

Economic Organization and Transaction Costs - Essay Example Often included in this category are the accrued transportation/ logistical costs. Accordingly, these expenses are crucial in deciding whether or not to make or buy a product/ service (Cheung, 1987, p. 55). The paper will conduct a literature search and review that is related to a case study in transaction cost economics. The focus will be on General Motors and the Fisher Body Company, during the 1920s, in regard to the pertinent economics of organizations. There is have to accentuate at the beginning that there is not and will never be one brought together hypothesis of vertical integration. While the writing on vertical integration has a tendency to concentrate on a basic dichotomy between the choice to "make" inside or "purchase" through the business, from a TCE or NIE viewpoint we must be delicate in the way that there are a wide exhibit of business based administration plans that speak to different options for both straightforward unknown rehashed spot market exchanges and vertic al integration. These two administration plans are polar cases. Hypothetical and exact research in the NIE convention looks at not just the determinants of the limits in the middle of firms and markets additionally the sources of different "half and half structures" of administration structure that lie between basic mysterious spot market exchanges and bound together various leveled associations with fluctuating regions of vertical and even control. These crossover structures incorporate different sorts of long-haul contracts, joint endeavors, double sourcing (incomplete vertical integration), holding organizations, and open undertakings (Williamson, 1996, 2000, p. 598).

Human Resource Management Coursework Example | Topics and Well Written Essays - 1000 words - 1

Human Resource Management - Coursework Example In this method the employers base the wage rate on the job irrespective of the person who is doing it. The HR professionals and employers are now moving towards Competency based pay. According to this approach the employers determine the pay scale or salary range of the employee depending on his depth, types of skills and knowledge. An employee may receive a higher salary than his range if his competency level is equitable for a higher level job. Competency is the demonstrated skill, knowledge and behavior of a person that ensures and enables desired performance. There are three basic differences between the two approaches of pay scale. In the competency based approach the salary is more person oriented. The salary is based on the skills, knowledge and depth of the employee. Here a person gets paid for the knowledge and skills of the things he has the potential to do even if he is not doing it right now. Whereas in traditional method pay is job oriented irrespective of the skills and abilities of the person who is doing it. It ties the pay scale with the worth of the job. In competency based approach an employee builds competency through experience on the same or similar jobs. Whereas in job based pay the aim of the employee is not build competency (knowledge and skills) but the determinants are experience and tenure. ... sler et al, 2009) Reduction of Unsafe Acts through Selection, Placement and Employee Participation It has been a well accepted fact that some employees are more prone to accidents than others. Reasons for such irresponsible behavior are not easy to find and hence organizations concentrate on reducing these incidents as much as possible through a variety of strategies. These strategies for minimizing accidents and unsafe behavior can be divided into four categories namely personnel selection, employee training and participation, incentive programs and safety rules and regulations. Many environmental factors also play an important role in scientific strategy of reducing accidents, such as overcrowded workplaces, faulty or wrong arrangement of the material to be used in industrial process and many other placements. With the help of work and safety engineers these problems of placements can be resolved. These engineers not only take care of placement issues but also of any potential situ ation in the environment that can cause distress and discomfort among employees. They help in providing congenial, safe and stress free working condition conditions. Personal factors also play an important role. Some employees are more prone to accidents than others. These personal factors can be detected or identified through an appropriate and well designed selection process. Through a variety of psychological test an applicant’s motor and sensory abilities can be judged along with the muscular speed and perceptual style. It will help finding the right match of these qualities required for the job in the person. During the selection process an insight about a potential employee’s work habits, any organic diseases, fatigue level, drug addiction, age and experience, can be gained to