Vertical integration

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What are the arguments for and against vertical integration?

A vertical structure consists of an upstream firm such as a manufacturer of an intermediate good, and a downstream firm such as a wholesaler or a retailer. The down stream firm may also be a manufacturer or service provider using the intermediate good as an input. An upstream firm is said to be vertically integrated if it controls (directly or indirectly) all the decisions made by the vertical structure. The vertically integrated profit therefore refers to the maximum aggregate profit of the vertical structure (manufacturer's plus retailer's). There are many cases where the firms (and possibly the consumers) will benefit from vertical integration.

One such example is where the problem of double marginalisation exists. Consider the case where both the upstream and downstream firms have monopoly power. If vertical integration exists, the final price charged to the consumer would be pm and the quantity supplied (qm) would be determined by the demand function D (.).

So, qm = D (pm)

Pm would be chosen to maximise (p ¨C c)D(p), where c represents the cost of production. In the decentralised structure the manufacturer will provide the intermediate good to the retailer at a price pw, which he will choose to maximise his profits as a monopolist. The retailer will then have a marginal cost of pw, so the final price, p, will be greater than the vertically integrated price of pm (assuming pw c). Because the retailer does not consider the manufacturers marginal profit, there are two successive mark-ups, causing the decentralised price to be greater than the vertically integrated one.

To examine this in greater detail, consider a case where there is a demand function of D(p) = 1 ¨C p, and c1. Let ¡Çm and ¡Çr denote the manufacturer's and retailer's profits respectively. For simplicity we will assume that the retailer incurs zero costs other than the price of the intermediate good. For the non-integrated industry, the retailer will want to maximise

(p ¨C pw)(1 ¨C p)

which will give

p = 1 + pw

Using the demand function, the quantity to be provided will then be

q = 1 ¨C pw

Hence, the retailer makes a profit of

¡Çr = ((1 ¨C pw)/)

Now, consider the manufacturer's situation. He will want to maximise

(pw ¨C c) ((1 ¨C pw)/)

Which will give

Pw = 1 + c

Thus giving him a profit of

¡Çm = (1 ¨C c)

8

Therefore, the total profit of the decentralised industry is (1 ¨C c)

16

and the final price is p = + c .

4

If, however vertical integration exists, the vertical structure will maximise

(p ¨C c) (1 ¨C p)

this gives a final price of

p = 1 + c

and a vertically integrated profit of

¡Çintegrated = (1 ¨C c)

4

¡Çdecentralised

In this example, the total profit is higher for the vertically integrated structure and the price to the consumer is lower that it would be without integration. The quantity provided is also lower without integration. Therefore vertical integration is clearly beneficial in such cases where double marginalisation is problem. However, this problem only arises where both the firms are monopolists. If either of the firms is competitive and therefore prices at marginal cost, there is no price distortion and so the total profit will not be increased by integration.

Vertical integration is, however, not always necessary for the vertically integrated profit to be realised. One way a manufacturer can control this in a decentralised industry is by imposing a franchise fee. This is effectively a two part tariff charged to the retailer. i.e. the retailer's cost will be A + pwq. It is clear that the manufacturer can set pw = c, therefore setting the retailer's marginal cost equal to that of the integrated structure. The retailer will set his final price by maximising

(p ¨C c)D(p) ¨C A,

which then gives p = pm. His profit is then equal to the vertically integrated profit minus A. In this way the manufacturer is selling the vertical structure to the retailer as a price A, thus making the retailer the residual claimant.

This form of vertical restraint however, has some disadvantages. Firstly, it is possible that the retailer will be risk-averse and his retail costs or final demand may be random. In this case the retailer will bear too much risk and require the retailer to lower the franchise fee and raise pw to compensate for this risk. This then means that the final price, p, will be higher than that of the vertically integrated structure. Another drawback to the two-part system is that the retailer may possess information about retail costs or final demand, after the contract has been signed. As this information will not be then passed to the manufacturer, the franchise fee will not be tailored to appropriate the retailer's profit.

Another way the manufacturer could realise the vertically integrated price would be to adopt a Resale-price maintenance restriction. The retailer would then be forced to charge at a price no higher than pm. The manufacturer could then charge pw=pm and so gain the integrated profit. Similarly, the manufacturer can impose a quantity constraint, where q qm . These restrictions again have drawbacks, as it would be very risky for the retailer if his final demand and retail costs were not certain.

The welfare considerations to this situation are very clear. Under vertical integration (or even with vertical restraints) the firms make a greater profit than they would under a decentralised system, and consumers benefit from a lower price. Therefore, welfare is unambiguously increased by vertical integration.

Another situation where vertical integration would be beneficial is where there is a downstream moral hazard. This is where a retailer may be able to provide pre-sale services which an affect the final demand for the good, but there is not sufficient incentive for him to provide it. Examples of such services include advertising, test drives, free delivery, free alterations etc. As these may increase the demand, it is beneficial to the manufacturer if these services are supplied. However, as the amount of services cannot be accurately measured, it is not possible to specify the amount of promotional services to be provided, in the contract. Therefore the manufacturer must create and incentive for the retailer to provide the services.

We can define the amount of promotional services by a real number s. The consumer's demand will therefore be a function of both price and service.

i.e. q = D(p,s).

Assuming that the cost of services is born by only the retailer, let §¶(s) denote the cost of providing service s. Therefore, the manufacture will maximise

(pw ¨C c)D(p,s)

and the retailer will maximise

(p ¨C pw ¨C §¶(s))D(p,s)

There again exists a double marginalisation problem, as the manufacturer will charge pw c. Because the retailer does not take into consideration the increase in the manufacturer's profit due to an increase in services, at any given price the retailer will provide too few services and so cause demand to decrease.

Vertical integration would remove this externality, as the integrated firm would them aim to maximise the total profit of the structure. Therefore, integration would not only increase the profit of the structure, it would also mean that more services would be provided, which would benefit consumers.

The manufacturer may choose to impose vertical restraints to increase the amount of service provided by the retailer. One way of doing this would be to impose a two-part tariff as mentioned before, thus making the retailer the residual claimant and so will receive any marginal profits. This gives him an incentive to provide more services, benefiting both firms.

Unlike the previous example, the service externality cannot be removed by RMP. The manufacturer can set the price p = pm, however the retailer still has no reason to provide more services.

Another problem similar to the downstream moral hazard is if the manufacturer is able to provide service which will increase demand, such as branding, quality etc. If there is vertical integration, the profits for both firms will again increase, as will the welfare for consumers as services increase. However, without integration, the problem exists of providing an incentive for the manufacturer to provide the services. One way to do this would be to introduce a third firm which would make non-negative profit and would buy the intermediate good from the manufacturer at a linear price, and sell it to the retailer using a two-part tariff. This would make both the upstream and downstream firms residual claimants and therefore provide and incentive to provide services to increase their profits.

This is again a case where both firms and consumers would benefit from vertical integration.

A further example of where vertical integration would be beneficial is where the downstream firm uses inputs from more than one manufacturer. Consider a case where the retailer uses inputs from manufacturers where one is a monopolist and the other is a competitive firm (i.e. prices at marginal cost). Thus the relative price of the inputs for the downstream unit exceeds their true relative price, and so the downstream unit will substitute towards the second input. The upstream monopolist can then integrate with the downstream firm to realise the vertically integrated profit.

This can again be done using various vertical restraints. The two-part tariff can again b used, making the downstream unit the residual claimant. Another method which can be used is a tie-in and the RPM. This is a contract which binds the downstream unit into buy the second intermediate good from the monopolist. This however, can have drawbacks as it is often not practical for the monopolist firm to be able to provide the second input as it is hard for it to be able to cover so many areas. Therefore, again, vertical integration would be a useful tool to increase the profits to the firms and keep the price lower than if the structure was decentralised.

The welfare analysis of vertical integration can sometimes be a little ambiguous. Consider a case where there is a monopolist manufacturer and many retailers. Looking at the first order conditions for the retailer when integrated and when decentralised, the integrated retailer considers the marginal revenue from any increase in demand. However, the competitive retailer is more concerned with the marginal surplus, which includes the total increase in demand. From this, we can say that it is possible that more services will be provided by the competitive retailer at a given wholesale price. However, the vertically integrated structure theoretically will charge a lower wholesale price.

Another problem which firms may face is the horizontal externality. This is where there are many retailers, and they are able to provide the consumers with pre-sale information. Examples of this may be free samples, test drives, literature, demonstrations etc. Any firm who incurs the cost of providing this information must then raise its price to compensate. This leads to the problem where consumers will gain the information from one firm and then buy the product from another firm which is cheaper due to not providing the information. In this way firms are able to free-ride on one another, which leads to the public good being undersupplied. Vertical integration may resolve part of his problem as it then provides the retailer with a monopoly position and eliminates competition. A manufacturer may not want to do this however as it may result in a loss of total sales. Although integration will enhance consumer welfare due to more information being provided, the elimination of retail competition may result in a significant increase in the final price. Other forms of vertical control may be used in this case such as RPM. With a set retail price, consumers are more likely to buy from the retailer providing the information as they will not find a better price anywhere else.

One way in which vertical integration may be damaging to welfare is if retailers pressure a manufacturer to impose vertical restraints to eliminate competition. For example, if there are several retailers, they are likely to engage in competition and eventually charge at marginal cost. If, however, the manufacturer imposes RPM where p marginal cost, they are legally bound to charge this that price. Therefore, they vertical restraint is used to reduce competition and the retailers will be able to make higher profits. This is of course damaging to the consumers' welfare as they are charged a higher price.

Another disadvantage to vertical integration is if the retailer engages in an exclusive dealing contract with the manufacturer, i.e. he cannot sell a brand which competes with the manufacturer's product. This is detrimental to consumer welfare as there is a reduction in choice. However, it may increase the efficiency of the vertical structure in the same way that a manufacturer giving a retailer exclusive territory would. Exclusive dealing would provide the manufacturer with an incentive to provide promotional services. These types of contracts however, can also act as a barrier to entry for other manufacturers, therefore keeping the competition in the upstream market soft. RPM can also be used to maintain collusion between manufacturers as then wholesale price cuts are less effective.

As shown above, there are many externalities which arise within a vertical structure which clearly benefit from vertical integration. Integration can be harmful if used to reduce competition as it raises prices and decreases consumer welfare. However, it can be a useful tool in resolving problems such as double marginalisation and the downstream moral hazard.

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Conflict resolution in work teams

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The nature of "conflict" seems like such a straightforward concept. Conflict has been around since there have been opposing forces of any kind. A conflict can be found anywhere. Proton and neutrons struggle against each other and tribes fighting for territory can all be seen as examples of conflict. Thinking back it is hard to remember my life without conflict. Whether it be fighting with my brothers for the television remote or arguing with my parents over my curfew, conflict is as much a part of anyone's life as sleeping or eating. For many the simple act of getting out of bed in the morning can spawn a serious conflict. The decision to respond to the ringing of ones alarm or to just roll over and sleep in is a conflict for millions of working people everyday. This last example is really trivial when you consider that people die from major types of conflicts such as war and genocide. Hitler's struggle with the citizens of the Jewish Tradition resulted in the death of millions of innocent people. This of course, is conflict at an extreme, but nevertheless shows how complex a conflict can become. One of the major challenges of today's day and age that occurs on a much more regular basis is the conflict found in the corporate office environment.

Work-Team conflict is growing as quickly as corporate America. Ever since the Work-Team was introduced to enhance office productivity conflict has risen in direct proportion to the amount of time and space proximity that the working team shares. This should be a natural result considering that the more time you spend with someone, the more comfortable you will become and as such, more prone to conflict. This is compounded by the fact that many office settings endorse conflict as a means to increase creativity, competition, and overall office productivity. This constructive conflict is an advantage to a workplace for those reasons. Another great benefit of office conflict in teams is the "meeting of the minds." Conflict and the subsequent compromise born in this type of environment encourages "Thinking Out of the Box" which can lead a company to new focuses and ideas never found in a traditional independent working approach. There may be less conflict in a setting with independent workers, but they will lack the ingenuity created from conflicts in teams.

This atmosphere can also degenerate, creating disadvantages in the work place that in some cases surpass any positive net effects of Work-Team situations. Because of the fact that negative conflict always seem to outweigh the positive conflicts, many workers can feel bogged down by working in groups for many reasons. If everyone does not accomplish their fair share of the team's work, one person may become overwhelmed with his or her group responsibilities. The inability to compromise over a given solution to a problem is also cause for difficulty under Work-Team conditions. Too much conflict within any group can ultimately take up valuable time and destroy productivity leaving office personnel emotional and less apt to produce superior work results. The worker who is independent does not need to worry as much about conflict that will severe a working relationship, but sometimes the independent worker will miss out on conflict that inspires high-quality output as a good Work-Team will deliver more times than not.

Several issues can arise when individuals work together in a team. No team is alike, as personalities vary with each member. A very important thing that needs to be implemented early on is role playing. Each member has strengths and weaknesses, and a positive thing with teams is sharing talents and abilities to better the work performance. It is very important that each team spends time defining strengths and weaknesses, so that there is an adequate representation of skills. This is mostly important in defining skills and making team productivity more efficient. Help with essay on Conflict resolution in work teamsObviously not everyone can be a leader, so one should be designated right away to avoid possible conflict. There are other roles that others can participate in, and a team is only successful when all members fulfill what is expected of them. Major conflict can occur when one or more team members become lazy or do not complete their work accurately. Teams are only productive when the work is spread around. Whatever the group members contribute to the team is what the team can expect to be produced. No group can truly succeed without participation from all of the team members.

Another major issue that needs to be discussed in the first or second meeting is defining the goals and strategies. Having a sense of commitment is key to success in any work group. Defining what we want to achieve with the team, and how we plan to gain achievement, can definitely help the team stay motivated and on task. In order to succeed in a group, all members must have a sense of mutual accountability. No one person should do the majority of the task; instead, all members need to contribute their part.

Conflict of interest between team members can ruin team work and wreck relationships. How people deal with the conflict is a major obstacle that many people have to face. Discussing possible problems along with possible solutions can help solve situations even before they surface. Also, it is good to be aware of the common group pitfalls, so each person can be proactive in preventing the situations from forming.

As more and more organizations structure to work teams, the need for training in conflict resolution will continue to grow. Varney (18) reports that conflict remained the number-one problem for most of the teams operating within a large energy company, even after repeated training sessions on how to resolve conflict and how to minimize the negative impact on team members. One reason for this may be that managers and other leaders within organizations are not giving the issue of resolving conflict enough attention. Varneys research showed that although most managers are aware of disagreements and have received training in conflict resolution, they seldom assign high priority to solving conflict problems. With this in mind, it is critical that team members possess skills to resolve conflict among them.

Every work team goes through four phases

·Forming

·Storming

·Norming (and)

·Performing

Each of these stages is important to create an effective team. Storming gives an avenue to bring out the creative conflict nature of humans, thus adding to the quality of the end product. Norming is the stage where every team member comes together and brings out each individual's role. Norming is important for adding efficiency to the team. The end product of the first three stages is the formation of a cohesive, efficient and a high quality team. It is important to understand that conflict resolution is not a means to curb all conflict, as that would adversely affect the creativity of the team negatively. Conflict resolution involves methods so that each team member can work cohesively and inputs his or her best to the final team deliverable.

When conflict occurs, there are several ways to handle it. Various researchers have worked on this topic and have coined their own phrases for ways and means to resolve conflict. However, since no two-conflict situations can be the same, there is no single set of rules to follow, which an individual or a group of individuals can use to determine the right method to resolve a specific conflict

The right conflict resolution strategy depends upon various factors such as the kind of work team, whether it is a groups of peers or an official team with a team leader, a moderator etc. Conflict resolution will also depend upon the real conflict at hand. After all, sometimes a conflict may arise about an issue that may really not be important for the end goal of the team. In such a scenario, it may be best to retreat and just go with one strategy either based on the majority rule or just the ease of going with one over the other. It may not be worth the effort to resolve a conflict that really would not matter after a few days, weeks or months. Another factor while resolving conflicts may be the maturity level of its team members. Depending upon the maturity a negotiation or mediation method may be adopted. These will be discussed in more detail later.

Sometimes, it is best to approach a conflict situation head on by discussing and brainstorming over the issue at hand. However, care should be taken in such cases so that if criticism is used, the comments should not be targeted towards an individual. When resolving conflicts through direct confrontation, it is important that the team has an effective leader who can control the team and also moderate the discussion and keep the team on track. In such a situation it is important that the team members keep the end goal in mind.

Mutual negotiation among team members is another very effective conflict resolution technique. This goes hand in hand with the direct approach as mentioned above. Mutual negotiation can be very effective method of resolving conflicts if the roles of team members are clearly defined and there is mutual respect among team members for the respective roles they play.

Take for example the case of a branch manager and a staff member, who are in conflict over work hours. The branch manager expects all staff to work standard hours, beginning at 800 am so that the public will receive service starting first thing in the morning. The staff member wants to begin work at 00 am, because he has child care responsibilities. On several occasions the staff member has arrived late, which makes it appear to the manager that the employee is being deliberately unwilling to follow the rules.

Rather than the situation deteriorating, the parties approach the situation, not as one that should be won, but with an eye on solving a problem. After discussing the situation, (and understanding each others needs), they realize that a) almost no customers call in the early morning b) the few that do can be handled by other staff who like to be in at 800, and b) there are more customers calling in between 400 and 500 pm. The parties agree that it makes sense to modify work hours. The result a happier employee and better service.

These benefits would never have occurred if this conflict hadnt occurred, or if either party played the situation as if it was a game to be one by one person or the other. (Did anybody really lose in this situation?).

The same situation could have been handled in an entirely different manner as follows

When the branch manager approached the staff member about the tardiness, he showed his irritation plainly. The staff member, already feeling under the gun, felt that the manager was being unfair, and accusatory, and became defensive. This, in turn, resulted in the manager laying down the law, and that was how the situation was left. After the discussion, the manager felt the employee was lazy and making excuses, while the employee felt the boss was out to get him.

Not surprisingly, the situation got worse. Even when the staff member was a few minutes late, for good reason, the boss jumped on him like a ton of bricks. The employee, angered and frustrated, started taking longer coffee breaks and was away sick more frequently. The situation became increasingly polarized, with other people being sucked in, and taking sides, privately.

Oddly enough, the initial perceptions of both boss and employee became the truth. After a while the boss acted as if he was out to get the employee, and the employee acted as if he was lazy and uncaring. The original issue was all but forgotten, as the parties developed an intense dislike of each other.

Involving a third party or a mediator may be another effective method of conflict resolution. The mediator may be a neutral member of the team, the team leader or maybe a member from outside the team. Sometimes, mediation would require compromise on both sides and maybe both the parties under conflict may be dissatisfied with the final decision. The litmus test under these situations is to see how it effects the team goal.

A last resort for conflict resolution in extreme situations can be to enforce team rules and come to dispel a conflict. However, it is important to understand that when these kinds of conflict resolution strategies are used, it is time to re-evaluate the roles of group members, redefine the working rules of the team or in rare cases even reconstitute the team.

Though conflict is a necessary poison, avoiding personal conflict can improve team productivity as well as foster team relationships. By following some very basic rules for group behavior, we can avoid conflicts in work teams. If each team member shares information among team members, keeps an open mind for suggestions from other team members and is flexible and willing to change with the requirement of the team, the team can soar to high levels in terms of productivity, quality and efficiency.

One of the basic rules for working in a team is to always keep the end goal in focus. If every individual member in team asks the question to himself, "How does this relate to our task?," a lot of conflicts will die before even popping up their head. By performing regular group and self assessments, each team member can avoid conflict situations to arise within the team.

In conclusion, while often frustrating, the tension and struggle inherent in conflict sows its own seed for innovative resolution and growth. Are you ready to reap the creative pass in the impasse?

Please note that this sample paper on Conflict resolution in work teams is for your review only. In order to eliminate any of the plagiarism issues, it is highly recommended that you do not use it for you own writing purposes. In case you experience difficulties with writing a well structured and accurately composed paper on Conflict resolution in work teams, we are here to assist you. Your cheap research papers on Conflict resolution in work teams will be written from scratch, so you do not have to worry about its originality.

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Happy

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Why was the United States destined to leave an imprint upon the world?

The United States was destined to influence the world because of its refreshing liberal ideals such as democracy which provided many opportunities for everyday people. The U.S. also had a very large economic output and was the site of many achievements that shaped people's lives around the world.

Why was the United States favored from the beginning?

The American Republic was favored from the beginning because it started from scratch. It was an experiment of new social and political ideas. Although the experiment succeeded, we may never have the chance again to start a new country from scratch because there are no more unpopulated, fertile areas left.

The Shaping of North America

How did the Earth change over time to create what we know it to look like today?

5 million years ago there was a single continent on Earth. Then parts of the continent began to drift forming the seven continents. Shifting of the Earth's crust created mountain ranges and about 10 million years ago the North American continent was created and still looks similar today.

How did the Great Ice Age affect the landscape of North America?

The Ice Age created two mile thick ice shields from Pennsylvania across to the Pacific Northwest. When the glaciers started melting the land was rocky with shallow depressions the later became lakes, including the Great Lakes. In present day Utah, Idaho, and Nevada, Lake Bonneville was created. It gradually shrunk from lack of inflow and left behind a mineral rich desert.

The First Discoverers of America

Explain how the ending of the Ice Age help to end the roaming of inhabitants from Eurasia to North America?

The ending of the Ice Age caused the sea level to rise once again hiding a land bridge that had been exposed during that time. Americans, however, started roaming to South America, splitting into tribes and developing new cultures and ways of life.

The Earliest Americans

How did corn growing affect the development of the Americas?

In 5000 BC corn was developed into a staple crop in Mexico. It spread through the Aztec and Incan states until it reached present day United States in 100 B.C. As it spread, irrigation systems were created to water the cornfields. With corn, more sophisticated societies were established. Because most of Northern American Natives were introduced

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Satire in Candide

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The Range of Satire in Candide

Francois-Marie Arouet De Voltaire's most classic work, Candide, is a satiric assault on most everything that was prevalent in society during the author's lifetime. In Candide, Voltaire offers the reader characters that partake in extremely exaggerated and outlandish events. Portrayal of these melodramatic events act as a form of satire, which Voltaire epitomizes throughout his reflections in Candide. Satire is a means for ridiculing something or someone in order to discredit it. Satire allows Voltaire to criticize through humor. As a result, instead of normal comedies which analyze the faults or weaknesses of its characters, Voltaire tries to make them as ridiculous as possible. Through emphasizing the absurdity of a situation or one of the characters, satire almost adequately displays cruelty. Voltaire applies satire as a means of pointing out this cruelty and making it seem intolerable to the reader. Although many of Voltaire's ideas are exaggerated, he still provides some conceptual ones, which together provide a distinct outlook on life. Voltaire satirizes many points in Candide such as philosophy, war, and religion. Furthermore, he offers real historical events that reveal this style. The satirical style Voltaire chooses to implicate is used frequently in many literary works, especially of those in Voltaire's time. Although Voltaire's use of satire may seem excessive at times, he still manages to accomplish a credible story which rationalizes order and ultimately, self-gratification.

Perhaps the most significant reflection Voltaire satirizes is the philosophical optimism of Baron Gottfried Wilhelm Von Leibniz, a very popular and sought-after German philosopher. Candide mocks Leibniz's beliefs in the form of Dr. Pangloss's visitation and optimistic belief

Cheap Custom Essays on Satire in Candide

that "everything is for the best in the best of all possible worlds". In the story, irrational ideas are taught to the main character, Candide, about optimism versus the reality of the rest of the world. Pangloss is a devoted teacher to Candide and an optimist who claims that there is no effect without a cause, and that everything has a purpose. Pangloss was not meant to be a direct attack on Leibnitz. Furthermore, Voltaire wanted people to realize how distorted Leibnitz's idea was. The naïve character of Candide listens to Pangloss as he expresses his concept that, "Things cannot be otherwise than they are, for since everything is made to serve an end, everything necessarily serves the best end" (Voltaire 1546). The name Candide originates from the Latin word candidus, which means white, symbolizing innocence. Perhaps Candide was meant to pursue the belief in optimism due to his innocence. However, by the end of the novel, the reader discovers how Candide reacts to the philosophy he depended on, which ultimately allows Voltaire to implicate the message he wants to get across to the reader. Candide allows the reader to literally laugh out loud at the absurdity of some of the characters, especially Pangloss. Throughout the story, satirical references to Voltaire's optimistic theme contrast with natural catastrophes and human wrongdoing. For instance, when reunited with the diseased and dying Pangloss, who had contracted syphilis, Candide asks if the devil is at fault. Pangloss simply responds, "Not at all," (Voltaire 155) then continuing to state that if there were no diseases, "We should have neither chocolate nor cochineal" (Voltaire 155). The fact that Pangloss encounters all of the mishaps and misfortunes that come along his path and still maintains his philosophical optimistic views is humorous in itself. Pangloss's optimism cannot be tarnished, even after he becomes diseased, is burnt at the stake and is chained to oars as a slave. He claims that all of these misfortunes are necessary in a right and just world. At the end of the novel when Candide is reunited with Pangoss, he asks him, "Now that you have been hanged, dissected, beaten to a pulp, and sentenced to the galleys, do you still think everything is for the best in this

world?" (Voltaire 1614). Pangloss responds and pronounces, "I am still of my first opinion; for after all I am a philosopher" (Voltaire 1614). The reader is exposed to Pangloss's views as a means of revealing Voltaire's rebellion against such an attitude. Voltaire hated optimism and parodied it efficiently and brilliantly though Pangloss's character he specifically created for this reason. Candide illustrates the means in which Voltaire could voice his dissatisfaction.

With most philosophies of the eighteenth century, war was considered the most terrible and ignorant of all mistakes. So of course Candide had to include mockery of war, and the Seven Years War is a perfect example of that. The war in the beginning of the novel between the Bulgars and Abares is indeed a reference to the Seven Years War that occurred between France and Prussia while Voltaire was alive. This battle that Candide is forced to flee from and that leaves many men dead is actually based on the real conflict. Voltaire uses this battle to show just how bloody and savage war really is. The narrator reflects that, "Nothing could have been so fine, so brisk, so brilliant, so well drilled as the two armies. The trumpets, the fifes, the oboes, the drums, and the cannon produced such a harmony as was never heard in hell" (Voltaire 154). Obviously, the reader gains an insight that perhaps Voltaire is pro war. Voltaire satirizes war by correlating it with hell. No one refers to war as fine and brisk, nor brilliant and well drilled. However, Voltaire effectively voices his opinions through the events he creates in Candide. In chapter twenty when Candide and Martin are at sea, they witness two vessels fighting. They saw, "Clearly a hundred men on the deck of the sinking ship; they all raised their hands to heaven, uttering fearful shrieks; and in a moment everything was swallowed up" (Voltaire 1588). "Well," Martin said, "That is how men treat one another" (Voltaire 1588). Candide further comments, "There's something devilish in this business" (Voltaire 1588). Voltaire believes that war is a positive commodity and does an eminent job in showing it through the events in Candide. In chapter twenty-one, Candide asks Martin if he believed that men have always massacred one

another and if they have always been, "Liars, traitors, ingrates, thieves, weaklings, sneaks, cowards, backbiters, gluttons, drunkards, misers, climbers, killers, calumniators, sensualists, fanatics, hypocrites, and fools? (Voltaire 158)" The reader already knows that Voltaire completely despises optimism, and is now revealed that Candide is slowly becoming the archetype of Voltaire. Candide considers and evaluates whether things truly are for the best in the best of all possible worlds. What Candide witnesses in France allows Voltaire to demonstrate that neither everything nor everyone is perfect. Using an over-excessive amount of adjectives in describing men who harm others is yet another way Voltaire succeeds at ridiculing society. Furthermore, Voltaire witnesses many of the conflicts he includes in his novel, therefore reassuring the reader that not everything in life is perfect.

Voltaire also uses satire when he references religion in Candide. He mock religion because he believed that religious organizations were corrupt. The religion of Candide, and Voltaire, is Deism. Deism is an eighteenth century belief based solely on reason, that God created the universe and then abandoned it, assuming no control over life, exerting no influence on natural phenomena, and giving up no supernatural revelation. Voltaire satirizes religion when Candide arrives to the utopian society of El Dorado. Candide comes across an old man that tells him about the religion of El Dorado. When Candide asks him how they pray to God, the old man declares, "We don't pray to him at all; we have nothing to ask him for since everything we need has already been granted; we thank God continuously" (Voltaire 1580). El Dorado is a perfect place, still religious but no bishops, priests, or monks to control people. How can a town be religious but have no priests? In El Dorado, there is no such thing as organized religion, no courts or prisons, and no poverty and complete equality. Even the king is treated like an average citizen. It would be wonderful to live in a world where everyone is treated like equals. Although this will never be true, one can only dream in Candide, as Voltaire analyzes the imperfection in

the world. Consequently, although the world of Candide is crammed with absurd and ridiculous events, the existence of El Dorado suggests that something better could exist if men were more in harmony with the nature of the world and of God. Nevertheless, parallel to Voltaire's views, Candide did not want to stay in El Dorado. For literal reasons he wanted to go back to Cunegonde, but more importantly, he could not reason with the views of religion the people of El Dorado practiced. Here, Voltaire suggests his idea that the random events that taking place throughout the course of his novel simply happen, uncontrolled by the existence of God. Voltaire realizes that humans seem to love the chase of finding perfection, but realistically don't care about the result. For instance, Jehovah's witnesses see heaven as a glorified place and they spend all their dreams are to rush through their lives to be in heaven, but can they take their houses or cars to heaven? Most people, like Candide, search for perfection only to realize that its not all as it seems.

Throughout Candide, Voltaire introduces historical reality to further promote his encompassing ridiculous views. The six deposed kings Candide and Martin have dinner with are real and actual embellishments that are now dispossessed. In chapter twenty-three, Candide witnesses Admiral Byng being executed because he did not kill enough enemies. In reality, there really was an Admiral Byng who was killed for not killing enough enemies. Candide comments that in his country, "It is useful from time to time to kill one admiral in order to encourage the others" (Voltaire 15). Voltaire references the Lisbon earthquake that actually occurred on November 1, 1755, just four years before writing Candide. In reality, this is a horrific predicament to be involved in. Here, Voltaire trivializes the fact that humans don't care about certain incidents unless they are actually affected by it. For instance, the events of September 11th were intensely horrific. However, many people simply sat at their televisions watching the events unfold, not having any idea how the people in New York were affected by the event. It's

humankind's natural instinct to not care about something that may affect other tremendously. In indicating events that happened in history, Voltaire demands the reader to realize the events and terror that we still have today. He also demonstrates how people tend to only care about themselves because that's all they are realistically capable of.

Although many exaggerations Voltaire implicates in Candide are outrageous, he still manages to very efficiently accomplish a credible story. The character of Candide acts as the façade in which Voltaire can stress and satirize his views. Candide was born to believe in optimism, but that optimism takes a battering when his family throws him out of his home, and embarks on an adventure in which he escapes near death experiences numerous amounts of times. Every encounter Candide comes across is one more step into his search towards enlightenment and wisdom. By the end of the novel, Candide learns to stop debating philosophy and to simply live his life for better or for worse. What Candide learns and the events that occur let Candide gradually become his own person. He learned to accept life for what it had to offer, and that not everything had to be analyzed to decide whether it was good or bad. In the conclusion of Candide, Pangloss continues to philosophize, but Candide realizes that philosophy is useless. Voltaire uses several gardens, including the original garden of Baron Thunder Ten Tronck's castle, the garden of El Dorado, the garden of the Old Turk, and Candide's final garden, allows him to reveal the moral aspect of Candide. A garden allows people to take care of the earth, and in turn allows people to receive food and comfort from it. Like everything in life, some gardens are better than others, and some gardens can be destroyed, similar to how Candide prevalently was throughout his adventures and mishaps. However, one can gain contentment while working in the garden or eating food from the garden. Voltaire solely wanted to show the reader that not everything in life is good. Life has its pros and cons, and just how the reader gets this insight, Candide does as well. Even though Candide was learned to be optimistic, he slowly

reached self-gratification. By integrating the gardens into Candide, Voltaire trivializes that people can only realistically take care of themselves. This is satirized in Pangloss, as he wanted to make the entire world a better place. By Candide assembling a beautiful garden full of flowers and lush landscaping, he was improving his own life. Realistically, the world can be a better place if everyone solely takes care of their own world. Candide finally understands that happiness requires taking part of something he finds himself content in. This is important to the satire of the whole, because it is Voltaire's summation of all the criticisms, and all that is wrong with society. Candide is just an all out attack on society, and Voltaire successfully uses humor to illustrate his views. It is ultimately a final irony that the satirical journey of Candide comes to a close. "We must cultivate our garden" (Voltaire 1618). Five short words, Voltaire's final conclusion to the great comedy that is Candide.

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Critical Analysis of Man's Fate

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ENG 10

July 7, 00

Man's Fate A Historical Criticism

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Introduction

The focus of this historical criticism is on why Andre Malraux, (101-176) created the novel Man's Fate and the events that shaped it. To lend substance to the literary relevance of this work, one can look into the background of the main characters, deciding whether or not Malraux has based his work on actual martyrs. One can gain further insight into Man's Fate by looking at Malraux's beliefs themselves. Man's Fate is an unflinching look at some richly developed characters caught up in one of the most tumultuous periods of China's history.

MAN'S FATE

The opening scene of the novel, in which Chinese terrorist Ch'en is faced with assassinating a sleeping man is the defining moment for the rest of the work. How can this man deal with such a distasteful task and what had lead him down the road to this desperate place? When a person's beliefs and convictions cause them to succumb to this course of action, what does it do to the person as a whole?

By filling his book with open-ended questions on the nature of humanity, author Andre Malraux causes his reader to wonder what could have driven a man to the point where killing is his only option. More about the choices people make and their consequences than the Chinese Communist Revolution; Malraux fills his work with richly rendered characters. Malraux himself had strong convictions, and his personal beliefs are also deeply imprinted on his work. This historical criticism will delve into some of the factors current at the time in China that could have created such captivating characters and why their actions are at the level they came to be.

CHINA GOES COMMUNIST

The United States spent almost $ billion after World War II to shore up China's Nationalist government and its leader, Chiang Kai-shek (Stoley 117). Though his regime was corrupt, Chiang seemed to be the best hope of maintaining a bulwark against Communist expansion in Asia.

Despotic regional warlords ruled a fragmented China in the early 100's (People's Warlords). In 11, faculty and staff members from prestigious Peking University, founded the Chinese Communist Party (CCP) as a direct result of the failed revolution of 111, and the new political party quickly began to gain favor (Green 76). Chiang and his Communist rivals would alternate between uneasy alliance and all-out conflict. They joined forces in 17 to seize power from the warlords with Chiang using the victory to establish a new Chinese Nationalist Republic (People's Warlords). Shortly thereafter, Chiang's Nationalists and the Communist Party were fighting again. While Chiang did manage to break the communist leadership and scatter the communist into southern China, this civil war would last for ten years.

During this time, Chiang was attempting to build a new nation. He announced a period of political indoctrination to prepare the Chinese people for a final stage of constitutional government (Duiker 11). Yet years of infrastructure neglect and the ongoing civil war with the Communists had severely frayed the political, economic, and social fabric of the Chinese people. To offset this, Chiang sought to propagate traditional Confucian social ethics such as integrity, propriety, and righteousness (Duiker 14). Yet these beliefs had been widely discredited by the failure of this traditional system to solve China's growing problems.

Chiang grew increasingly paranoid as he tenuously held only a few Chinese provinces, a new threat from Japan was emerging, and the world was in the midst of the Great Depression. Fearing the growing communist sympathy from the southern provinces, Chiang repressed all opposition and censored free speech. He attempted to institute a land reform program in 10 but it had little effect.

The effect of Chiang's programs on the populace of China was profound. Industrial growth was barely measurable at just below 1% per year (Duiker 11). Over three quarters of the countries wealth was held by Chiang and the so-called four families, composed of senior officials and close subordinates of the ruling class (Duiker 10). Military expense to hold the communist party in check consumed half the budget, and left precious little to social and economic development (Duiker 1). The deadly combination of internal disintegration and growing sympathy for communist ideals now began to coincide with the virtual collapse of the global economic order during the Great depression, coupled with the rise of militant political forces in Japan, unleashed turmoil on the peoples of China.

The stagnation in the Chinese people turned to outright decay. Poverty was everywhere, with the resulting crime and disease following right behind. Violence was the norm. Assassination, bribes, and deceit were a part of the daily lives of the Chinese. Perhaps the hardest hit of all were the peasant class who endured monumental taxes and land rents under Chiang's land reform. There were food shortages; no raw materials to work with in the factories, and what products were available were of very poor quality. Chiang institituted wide-spread conscriptions from the peasant class to war with the Communists. Dissention began to arise in the peoples of China, but always stopped short of outright aggression towards Chiang's government. The people of China were a powder keg ready to blow.

During this time, a young Communist organizer named Mao Zedong became convinced that China's political focus should be based on the impoverished peoples of the countryside (People's Rise). Mao helped to organize a peasant movement in South China during the early 10's. He wrote land reform policy, which while never fully adopted by the CCP, supported peasant demands for land revolution. Mao's popularity among the lower and middle classes grew so fast and so strong that Chiang was forced to drive Mao's People's Liberation Army from their base in South China to the outskirts of remote North China in the infamous Long March (Peoples Rise).

Far from idle in his exile, Mao furthered refined his Communist ideals while simultaneously bolstering his fighting forces. He gained popular support for his cause through his assumptions that the people should have a government based on honest policies, land reform, social justice, and peace rather on the utopian ideal of a classless society (Tse-Tung Classes). He gained further favor by carrying out a land distribution in the provinces he did control (Tse-Tung Policy). Mao continued his civil war with Chiang's government through political and military actions until 17.

It was in this year that Japan invaded China, and Chiang's Nationalists and the Communists called a truce that lasted to the end of World War II. Afterwards, the civil war resumed, but with a decisive shift in power. Mao had continued to build both his land holdings and military strength during the truce and dealt the Nationalists defeat after defeat (People's Rise). Quickly losing support amongst the people, Chiang retreated in 14 to the island of Formosa, now Taiwan, where he reestablished his government (Anonymous). On October 1, Mao proudly proclaimed China a communist state.

MALRAUX AND HIS CHARACTERS

Born in Paris to wealthy parents, Malraux was a man that had worn many hats. He could claim the titles of adventurer, art historian, novelist, statesman, and foreign minister during various times in his life (Thompson and Viggiani 11). Malraux had strong political convictions largely based on his French upbringing (Thompson and Viggiani 1). In France, the attitude of proletariat versus bourgeoisie is a long-standing conflict. As such, Malraux was involved in leftist politics and antifascist movements through out his life, going so far as fighting for the Republicans in the Spanish Civil War and closely associating with French Communists (Thompson and Viggiani 78). During the 10's Malraux was working in China were he witnessed the horrors that man did to man during the 17 Shanghai revolution. It was this event that inspired Man's Fate.

Winning the Goncourt Prize and establishing Malraux's international reputation, Man's Fate is a fictional story of a Communist uprising in Shanghai and its subsequent defeat. Malraux's intent with this work is to have his readers understand the reasons behind the revolt, the reasons behind why a man would die for his ideals. He does this by drawing the reader's attention to vivid and captivating scenes of the vast social upheaval of China during this period in its history.

It would have been easy for Malraux to have concentrated only on the revolution itself. Instead, the author chose to show the humanity that was stake. Man's Fate is not concerned with the social dynamics or political heart of revolution but with the prospects that revolution offers for individual people to struggle against the existential anguish of the certainty of death. He accomplished this through his use of alienated heroes Ch'en, the young terrorist, Kyo Gisors, the half-breed organizer, Katov, a former medical student and Russian national, Old Gisors, Kyo's father and a former scholar, among many others.

To give him greater latitude with the themes he wished to portray, Man's Fate is written in an omniscient third person. Man's tragic solitude and the search for some form of transcendence is a central theme repeated throughout Man's Fate (Bevan ). Each of the main characters and many of the secondary characters embody different responses to this theme (Tame). For example, Ch'en's most anguished victim is himself. The assassination he commits should have bonded him with the revolutionary group he is with. Instead, he comes away from the act with an incredible feeling of solitude and the knowledge that his act has separated him from the rest of mankind. Old Gisors has a pivotal role in lending the reader the ability to see and understand the characters actions and limitations. An opium addict, Old Gisors finds in his addiction an artificial sense of peace that gives him a temporary release from his awareness of his own mortality. At the same time, the opium also allows him the wisdom to give his insights to others. Kyo and Katov also cannot escape this solitude. Their struggle, which can be seen as a search for transcendental truth, along with their suffering, failure and ultimately atrocious death lend upon the novel an air of tragic finality (Bevan 66). Yet at the same time, Kyo and Katov raise the existentialist questions such as man's search for the absolute, his faith and trust in not only himself but in the others around him, and the depth of his commitments. Perhaps Katov, the quintessential existentialist, embodies Malraux's themes better than any other character. Katov, along with several of his comrades, are condemned to die in the boiler of a locomotive. Seeing two comrades whose fear is greater than his own, Katov relinquishes his cyanide capsules he had with him in case of capture. Katov's final act is the summation of his life. His sacrifice constitutes the human condition, or as Malraux puts it, man's fate (Tame 4).

CONCLUSION

Katov accepts the human condition. It may seem that Katov, along with all the other characters in Man's Fate, are trying to find relief from the human condition or at the least to escape from it. Yet, as easy as this interpretation may be, it does not do Malraux's work justice. Far from implying that escape is a desirable means to an end, Malraux's novel shows that the option of escape leads to a deterioration of the human experience (Bevan 74). The highest possible value is placed upon the capacity to accept one's fate. Malraux uses the concept that there be necessary limitations on people. If life is to have value, this requirement must be met. For example, Katov gives up his opportunity for a pain free death, and the consequence is that he remains in the human condition. He is able to know that his death will give meaning to his life. Any attempt at escaping the human condition is the abandonment of the possibilities life may bring. The willing and total acceptance of the human condition, of man's fate, signifies the will to fully realize each and every possibility no matter what the cost may be. Through Man's Fate, Malraux has shown his reader that denying the human leads directly to the inhuman.

Works Cited

Anonymous. "Taiwan's 400 Years of History Important Milestones from 1600 to the Present." Nov. 16. Formosan Association for Public Affairs. 10 Jul 00

http//www.geocities.com/Tokyo/Temple/07/hst-164.htm

Bevan, David. Andre Malraux Towards the Expression of Transcendence. McGill-Queens University Press. Boston. 186. , 66, 74.

Duiker, William J. The Twentieth Century. nd Ed. Wadsworth Publishing. Belmont, California. 00. 10-1, 11-14.

Green, Elizabeth E. China's Government and Party Organizations. Time-Life Books. New York. 181. 75-78.

People's Republic of China. "History of China Warlords". Jul. 14. People's Republic of China. 10 Jul 00. http//www-chaos.umd.edu/history/republican.html#warlords

People's Republic of China. "History of China Rise of Communism". People's Republic of China. 10 Jul 00.

http//www-chaos.umd.edu/history/republican.html#communists

Stoley, Richard B. Events That Shaped the Century. Time-Life Books. New York. 000. 117

Tame, Peter D. The Ideological Hero in the Novels of Robert Bassilach, Roger Vailland & Andre Malraux. Peter Lang Publishing. 18. 41-4.

Thompson, Joseph and Carl Viggiani. Witnessing Andre Malraux. Wesleyan. 18. 11-1, 78.

Tse-Tung, Mao. "Analysis of the Classes in Chinese Society." Mar. 16. Marxist Internet Archive. 10 Jul 00.http//www.marxists.org/reference/archive/mao/works/16/0.htm

Tse-Tsung, Mao. "Our Economic Policy." Jan. 14. Marxist Internet Archive. 10 Jul 00. http//www.marxists.org/reference/archive/mao/works/14/01_.htm

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Human Resource Strategy making and HR planning often appear to be undertaken as separate activities within organisations. Why might this be the case and what can be done to ensure a closer relationship?

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Human Resource Strategy making and HR planning often appear to be undertaken as separate activities within organisations. Why might this be the case and what can be done to ensure a closer relationship?

Human Resource Management has become the new tool of the millennium for businesses and organisations. Most companies now have HR departments within their organisation to increase their success. Hr branches into many different forms within the company and this essay will focus of two aspects Human resource strategy making and HR planning. The essay will also examine their lack of relationship and how to increase a more efficient working stream.

Human resource strategy is the process of collecting people plans and programmes of activity within an overall framework, designed to deliver against organisational objectives. Human resource management strategy compromises 'those decisions and actions which concern the management of employees at all levels in the business, and which are related to the implementation of strategies directed towards creating and sustaining competitive advantage.

Human resource strategies may be understood as objectives or as processes. Human resource objectives include the development of capability within a company in order to give the business a competitive edge or advantage. This can be described as strategic human resources aims. Usually most companies will approach human resource strategies either through a 'hard' approach or a 'soft' one. The hard can be seen as 'utilitarian instrumentalism' and the soft as 'developmental humanism.'

The hard approach stresses on the crucial importance of the close integration of human resource policies, systems and activities with business strategies. Systems are created to drive the strategic objectives of an organisation. In essence the approach emphasises the quantitative, calculative and business strategic aspects of managing the 'headcount' resource like any other economic factor.

In contrast to the views of the hard approach, the soft emphasises on the importance of incorporating human resource policies with business objectives. This approach regards employees as valued assets and a source of competitive advantage through their commitment, adaptability and skills. Employees are seen as active components within the production process.

Human resource strategy can bring many benefits to a company such as a strategy will put in place the appropriate employee mix to allow the organisation to achieve its aims and objectives. It allows the company to communicate the culture of the business to the workforce. Having a strategy allows employees to develop in a manner, which benefits both the individual and organisation. The strategy will provide targets by which the actions of the human resource function can be assessed.

The starting point for any human resource strategy begins with the organisation's strategic plan and values. But for a plan to take off the ground, it needs a workforce. A workforce must be in place that will allow the strategic plan of the business to be put into effect. This is where HR (human resource) planning comes in.

Human resources planning can be viewed as a company's attempt to predict w how many and what type of employees a company may need in the future. Planning is also used to gauge to what extent the demand is likely to be met. HR planning involves the comparison of an organisation's current human resources with likely future needs. Effective HR planning should result in 'the right people doing the right things in the right place at precisely the right time.'

Human resources planning can help management in making decisions in many of the company's areas. These include recruitment, avoidance of redundancies, training, management, development, estimates of labour cost, productivity bargaining, and accommodation requirements. HR planning is always in a state of continuous evolvement because goals of a company are always changing with an uncertain environment. Many variables such as invention, population changes, resistance to change, consumer demand, government intervention, and foreign and domestic competition make HR planning a complex concept.

Human resource planning is usually seen as an essential feature of the ideal model of human resource management. However, sometimes within human resource strategy making, planning isn't included. There are many reasons why it can be seen that HR planning and human resource strategy making are taken as independent parts of company.

One explanation is the extent of changing patterns of world trade and increasing competition, new forms of foreign and domestic government policies and regulations or through new technologies. E.g. there is no point in planning a large workforce within a strategy if new technology means hardly any employees are required. Also it is difficult to forecast social and economic changes accurately particularly in times of high unemployment All these factors can make planning very difficult and almost useless despite the growing need for it. The need for planning may be in inverse proportion to its feasibility, which would make it difficult to implement with the development and implementation of human resource strategy.

Related to the prior problem is the issue of the 'realities' facing an organisation and the continual shift and myriad policy priorities and strategies, which depend on the policies of the powerful interests groups, involved. HR planning needs to take account of these but by doing so, it may become overtaken in turn, or even be seen as nothing more than a presentational gloss on a totally different reality. Human resource planning can be very susceptible to this pressure. This can happen especially when there is an economic recession. E.g. when companies are losing money, they are more preoccupied with staying in business rather than worrying about recruitment and training planning. HR planning can also be overlooked within human resource strategy by virtue of the weaker power-base of the human resource function, which either precludes the allocation of adequate resources for HR planning or detracts from the ability to ensure the planning is incorporated within the strategy department.

The nature of management and the skills and abilities of managers also contributes to the lack of unity in HR planning and strategy making. In the UK particularly, there is a preference for 'pragmatic adaptation over conceptualisation.' There is also distrust in the theory of planning. In an IPM survey, lack of data, lack of line management understanding, and lack of corporate plan were the main reasons given by personal managers for lack of HR planning and human resource strategy implementation. This of course may vary between the different values, culture or strategy of different divisions, companies or industries. There are also the issues of the multiple and often conflicting nature of an organisation's goals. These can range with pressures for consistency and for flexibility, for prediction and for planning, but also speed and for response. The HR planning and strategy making of a particular company may have different agendas and no fit smoothly so they would have to be undertaken separately.

Also the type of industry may have an affect on HR Planning and human resource strategy. Some companies depend on new product development in an extremely competitive environment. E.g. In the video game industry the goal is to be the first with the latest software before rival competitors. Because its core goals is highly competitive and leans heavily on product, HR planning wouldn't be undertaken together with human resource management. A company may only need a few specialised employees so planning and human resource strategy wouldn't be time or cost effective.

If a company is using a hard approach to its human resource strategy, then it may not be as employee driven as other companies may be. Employees may be seen as commodity rather than integral aspect of the success of the company. In this type of scenario HR planning wouldn't be generally regarded within the making of the strategies, as the focus would be on economic success. HR planning needs to be seen as a 'line' responsibility and line managers using the hard approach are less likely to undertake planning activities than personnel managers; particularly in small decentralised units where the emphasis on achieving financial targets are likely to predominate. HR planning would only be seen as a method of maintaining employee balance rather than a way of utilising the employee potential.

Another factor that can make it seem that HR planning and HRS are undertaken differently could be because of the nature of their purposes. HR planning is one section of an organisation where human resource management looks at the whole of the company. Each section of a company such as marketing, finance and HR planning are busy running their own particularly allotment of the company so their policies make not be taken up with the human resource strategy making as it would look at the entire company rather than one section.

Organisational structure is also a deciding factor in the influence of the HR planning over strategic issues. Highly divided structures result in strong divisional HR functions, sometimes at the expense of the corporate HR role. The devolution of responsibility for profit or cost control to divisional managers can only be successful if they have control over HR policies. This can lead to tension between corporate head offices and hr managers which could lead to HR planning and strategy making to be undertaken separately.

As shown above, there can be copious reasons why HR planning can be left out of human resource strategy making. However, not incorporating HR planning into strategic decision-making can create a paradox. There cant be a human resource strategy if there is no employees and HR planning deals with recruitment and training. However, there are ways in which the two can ensure a closer relationship.

One of these is delegation of power and change of organisational structure. As mentioned before, planning should also incorporate line managers as well as personnel. By sharing the responsibility of the HR role, cohesion of ideas and formulations have a much better chance of happening rather than if they were isolated. Also managers need freedom to be able to put these policies and strategies in action, which means the heads of office, would need to relinquish their hold over strategy approval and disapproval.

Another way to ensure a closer relationship would be to keep the whole company up to date with information and technology. As mentioned before, one crucial aspect of why HR planning and HRS didn't mix was due to lack of data and training. If every department had sufficient information, understood the goals and objectives and was capable of training others, than incorporating planning with strategy would be faster and easier.

Using a soft approach to human resource strategy would ensure a tighter bond between both roles. Under the soft view, employees would have more significance and importance within the running and success of the organisation. This would mean a higher chance of HR planning being involved within strategy making for the company.

Increasing the importance and size of the HR planning function within a company would increase the bond in strategy making. Companies who have little or no human resource departments are less likely to intertwine planning and strategy making. By increasing the Hr department, more value is placed on the role of HR, especially planning and then would therefore provide a closer link.

If organisations were to become more flexible with resistant to change and environment policies than HR planning would be more closely attuned with strategy formulation. The problem with HR is that when economic crisis hits, it takes a back seat to organisational policies but if their goals were flexible to begin with, then all aspect of Hr, including planning would still be considered during a recession or problem.

These are just a few example of how organisations can utilise their resources to ensure a closer relationship between HR planning and HRS making. For any strategic plan to work, all aspects of HR need to be included because they are all interlinked with each other. If certain links are left out, the plan may have weakness that may cause it to fail or stop it being successfully implemented. As business moves into the 1st century, businesses needed to recognise the importance of Hr planning within Human Resource Strategy to fully comprehend and implement its most valuable and almost inexhaustible asset its employees.

Bibliography

Tyson, S., York, A. (000) Essentials of HRM, 4th ed., Butterworth-Heinemann, Oxford

Graham, H., Bennett, R. (18) Human resource management, th ed., Guildhall University, London

Storey, J. (15) Human resource management; a critical text, International Thomson Business Press, London

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