Roles Of Human Resource Management

Roles Of Human Resource Management In the past few years, roles for HR professionals were viewed in terms of transition from operational to strategic; qualitative to quantitative; policing to partnering; short-term to long-term; administrative to consultative; functionally oriented to business oriented; internally focused to externally and customer-focused; reactive to proactive; activity-focused to solutions-focused (Ulrich, 1997). However, these transitions have been seen as too simplistic. In fact, the roles of HR professionals are multiple, not single. In order to create value and deliver results, HR professionals must not only focus on the activities or work of HR but also define the deliverables of the work. Therefore, Ulrich (1997) came out a multiple-role model for human resource management (See Figure 2-1). The two axes represent the HR professionals focus and activities. Focus ranges from long-term/strategic to short-term/operational. HR professionals must learn to be both strategic and operational, focusing on the long term and short term. Activities rang from managing process (HR tools and systems) to managing people. These two axes delineate four principal HR roles which are: (1) Management of strategic human resources; (2) Management of firm infrastructure; (3) Management of the employee contribution; and (4) management of transformation and change (Ulrich 1997). In a short word, the roles of HR professional are strategic partner; administrative expert; employee champion and change agent. Table 2-1 summarizes the deliverables, metaphor and activities the HR professional must perform to fulfill the role. Figure 2-1 HR Roles in Building a Competitive Organization Source: Ulrich, 1997 Table 2-1 Definition of HR roles Role/Cell Deliverable/Outcome Metaphor Activity Management of Strategic Human Resources Executing strategy Strategic Partner Aligning HR and business strategy: Organizational diagnosis Management of Firm Infrastructure Building an efficient infrastructure Administrative Expert Reengineering Organization Processes: Shared service Management of Employee Contribution Increasing employee commitment and capability Employee Champion Listening and responding to Employees: Providing resources to employees Management of Transformation and Change Creating a renewed organization Change Agent Managing transformation and change: Ensuring capacity for change Source: Ulrich, 1997 Management of Strategic Human Resources-Strategic Partner As Ulrich said, HR professionals pay a strategic role when they have the ability to translate business strategy into action (Ulrich, 1997). To achieve this, the HR manager must be able to ask appropriate questions and contribute to business decisions. As a result, the HR manager must develop business acumen, a customer orientation and an awareness of the competition to be able to link business strategy to HR polices and practices. However, research suggests that only a minority of CEOs involve their HR managers in formulating business strategy (Nankervis, 2000 and Johnson, 2000). Evidence indicate that there is growing awareness of the need for HR managers to become actively involved at the strategic level, and increasingly recognize that organizations that have a CEO who recognizes the significance of HRM have a competitive advantage (Fisher and Dowling, 1999; Way, 2000). Management of Firm Infrastructure-Administrative Expert According to Ulrich, to become administrative experts, HR professionals must be able to reengineer HR activities through the use of technology, rethinking and redesigning work processes and the continues improvement of all organizational processes; see HR as creating value; and measure HR results in terms of efficiency (cost) and effectiveness (quality) (Ulrich, 1997; Blackburn and Rosen, 1995). Research also indicates that the competency levels of HR managers in high-performing firms are significantly higher than those of HR managers in low-performing firms (Yeung, 1998) Management of Employee Contribution-Employee Champion Work as employee champion requires that the HR professional must be able to and meet the needs of employees. This can achieve by being the employees voice in management discussions, by being fair and principled, by assuring employees that their concerns are being heard and by helping employees to find new resources so that enable them to successfully perform their jobs (Ulrich, 1997). Failure to be an employee champion will see HRM facing a loss of trust for losing sight of the needs, aspirations and interests of the workforce (Kochan, 2003). Ignoring employee-related outcomes may result in lower jog satisfaction, lower commitment and reduced performance, which in turn, negatively affect organizational performance (Guest, 2002). Management of Transformation and Change-Change Agent Act as change agent can be achieved by learning change in the HR function and by developing problem-solving communication and influence skills. Gloet argues that one way for HRM to reinvent itself is via the development and maintenance of learning environments, where knowledge creation, sharing and dissemination are valued (Gloet, 2003). Ulrich, D. (1997) Human resource Champions: The nest agenda for adding value and delivering results, Harvard Business School Press, USA Nankervis, A. Small packages, HR monthly, November 2000, pp.42-3 Johnson, E.K. (2000), The practice of human resource management in New Zealand: Strategic and best practice?, Asia Pacific Journal of Human Resource, vol.38, no,2, 2000, pp.69-83. Fisher,C. and Dowling, P. (1999), Support for an HR approach in Australia: the perspective of senior HR managers, Asia Pacific Journal of Human Resource, vol.37, no.1,1999,pp.2-19. Way, N. (2000), A new world of people power, Business Review Weekly, 16 June 2000, pp. 62-6. Blackburn and Rosen, Does HRM walk the TQM talk?, HR Magazine, July 1995, pp. 68-72. Yeung, A, Human Resource Competencies in Hong Kong; Research Findings and Applications Guide, HKIHRM/University of Michigan Business School, Hong Kong, 1998, p.4. Ellig, B, HR must balance demands of dual roles, HR News, July, 1996, p.9. Allen, C. and Lovell, K., The effects of high performance work systems on employees in aged care, Labour and Industry, vol.13, no.3, 2003, p.14. Kochan, T., quoted in Trinca, H,HR needs to rebuild trust, Australian Financial Review, 11 November 2003, p. 59. Guesr, D, 2002, op. cit., p.335. Gloet, M, The changing role of the HRM function in the knowledge economy; the links to quality knowledge management, paper presented at the 8th International Conferece on ISO and TQM, Montreal, April 2003, pp. 1-7. 2.2 Human Resource Management overview in China Since the late 1970s, China has been going through a transition. The economic reform in China has led to impressive growth and significant integration into the global economy. These developments have resulted in major changes in the management of industrial enterprises and hold considerable implication for HR practices in the nation with the largest workforce in the world. In China, HR practices have been shaped by a host of ideological, historical, political and economic factors. Under the economic reform programmed, although some market forces have been introduced into the HR system, the influence of the state is still considerable (Nyaw, 1995:193). In 1979, China introduced the open door policy. Since then, economic reforms have brought many changes to the business environment. The end of the iron rice bowl policy has created a new employment market. SOEs have to compete with joint ventures and privately owned enterprises. With reforms in HR practices, managers in SOEs have more a utonomy including the authority to hire and fire. There are significant differences in HR practices between firms of different ownership. MNCs and joint ventures have brought into China not only investment but also management practices. For example, labour contracts have replaced lifetime employment. A performance-based pay system is gradually replacing the seniority pay system. These practices have an important influence on domestic firms in changing their HR practices (Warner, 2001) Benson and Zhu (1999) observed that there were three major models of HRM in Chinese enterprises. The first was a traditional model that existed in large SOEs where there was surplus labour. These SOEs had close ties with the government and contributed to local development. They had traditional HR management systems. The second model was observed in foreign-owned enterprises or newly established domestic private enterprises. They had fewer constraints than SOEs. They realized that their success based either on western or Japanese systems. The third model was observed in firms that were undergoing a transition from the old to the new systems of HR management. They adopted a HR management style with Chinese characteristics. Nyaw, M.K. (1995) Human resource management in the Peoples Republic of China, in Moore, L.F. and Jennings, P.D. (eds), Human Resource Management on the Pacific Rim, Walter de Gruyter, New York, 187-216. Warner, M. (2001), Human resource management in the Peoples Republic of China, in Budhwar, P.S. and Debrah, Y.A. (eds), Human Resource Management in Developing Countries, Routledge, London and New York, 19-33. Benson, J. and Zhu, Y. (1999), Markets, firms and workers: The transformation of human resource management in Chinese state-owned enterprises, Human resource management Journal, Vol.9., No.4, 58-74. 2.3 Human Resource Management Outcomes HRM is concerned with both organizational performance and employee wellbeing which means that any evaluation of HRs contribution must incorporate both organizations and employees perspectives. The contribution of HRM to the organizational performance included aligning HR strategies with organizational strategies, managing the corporate culture to win employee commitment and being efficient in managing HR activities. On the other hand, the contribution to individual wellbeing relate to employee attitudes and behavior. High-performance HRM benefits the organization because the way employees respond to HRM initiatives is linked to their job performance and ultimately to organizational performance (Guest, 2002). Therefore, when evaluate HRM performance, following outcomes should be considered: Adaptability: that means HRM strategies and policies foster organizational and employee flexibility. The whole organization and employee ready for change and accept change. After that, innovation and creativity encouraged, knowledge is recognized as a critical asset and the organization utilize people with different background and value systems. Commitment: this concern with HRM policies enhance employee identification with and attachment to their job and the organization. High level of commitment can result in more loyalty, increase teamwork and reduced labour turnover, along with a greater sense of employee self-worth, dignity, psychological involvement and feeling of being integral to the organization. Competence: Relates to the extent that HRM polices attract, retain, motivate and develop employees with the abilities, skills, knowledge and competencies to achieve the organizations strategic objectives. Congruence: concern with HRM polices generate or sustain congruence between management and employees, different employee groups, the organization and the community, employees and their families, and within the individual. In other words, HRM strategies and policies promote the achievement of employee goals, at the same time, satisfy the organizations strategies business objectives. Lack of congruence can be costly to the organization in terms of time, money and energy, resulting low levels of trust and lack of common purpose and stress or other psychological problems will happen (Beer, Spector, Lawrence, Mills and Walton, 1984) Cost-effectiveness: the HRM strategies and polices can reduce personnel-related costs, help correctly size the organization, eliminate unnecessary work, reduce compensation and benefit costs, reduce labour turnover and absenteeism, improve employee health and safety, improve employee productivity and avoid costs from litigation and negative public relations. Job satisfaction: HRM strategies and polices can produce employees have positive attitudes and feelings about their jobs. Common employee satisfaction components include pay, promotion opportunities, fringe benefits, supervision, colleagues, job conditions, the nature of the work, communication and job security (Spector, 2000). Rose (2002) suggested that employees frustrated and bored with repetitive and standardized work have low commitment. A satisfied employee tends to be absent less often, make positive contributions, stay with the organization and radiate positive feelings towards customers (McShane and Von Glinow, 2000). Justice: HR strategies, polices and practices are powerful communicators regarding managements trustworthiness, fairness and commitment to employees. If management is perceived favourably, employees reciprocate with increased commitment to the organization (Whitener, 2001). Motivation: HRM strategies and policies stimulate employees to achieve a designated goal. Highly motivated employees work hard, come to work early and contribute more to the organizations strategic objectives. Performance: HRM contribute to employee job performance and productivity and the organizations overall profitability, growth and success. Trust: HRM promote trust between employees, management and the organization. Under trust, employees are willing to share information, genuinely cooperate with one another and not take advantage of other. Stone, R (2005) Human Resource Mangement, 5th ed, John Wiley Sons, Australia. Beer, M, Spector, B, Lawrence, P. R, Mills, D.Q, and Walton, R. E, (1984), Managing Human Assets, The Free Press, New York, p.19. Rose, E, The labour process and union commitment within a banking services call center, Journal of Industrial Relations, vol.44, no.1, 2002, p.40. McShane, S. L. and Von Glinow, M. A, (2000), Organization Behavior, McGraw-Hill, Boston. Whitener, E. M., Do high commitment human resource practices affect employee commitment A cross level analysis using hierarchical linear modeling, Journal of Management, vol. 27, no. 5, 2001, p.515. 2.3.1 Employee Job Satisfaction As mention before, one of the outcomes of HRM is job satisfaction. However, what causes employee satisfaction? The researchers Judge and Bono (2001) found that one of the primary causes is the perception of the job itself. And also job itself is the most important situational effect on job satisfaction. Other research also show that of all the major job satisfaction areas, satisfaction with the nature of the work itself which includes job challenge, autonomy, variety and scope are best predicts overall job satisfaction (Fried and Ferris, 1987; Parisi and Weiner, 1999; Weiner, 2000). Some general statements about the facets that seem to contribute the most to feelings of job satisfaction for most North American workers include mentally challenging work, high pay, promotions and friendly or helpful colleagues (Locke, 1976). For more detail, Spector (1997) concluded that the causes of job satisfaction can be classified into two major categories. First, the job environment itself and fac tors associated with the job are important influences on job satisfaction. This includes how people are treated, the nature of job tasks, relations with other people in the workplace, and rewards. Second, there are individual factors that the person brings to the job. This includes both personality and prior experiences. Both categories work together to influence employee job satisfaction. In this study, we mainly focus on the environment antecedents of job satisfaction. Following factors are the environmental causes of job satisfaction: Job Characteristics and Job Characteristics Theory Many studies have advocated job design as a means of enhancing job satisfaction by making jobs more interesting (Herzberg, 1968; Herzberg, Mausner and Snyderman, 1959). The job characteristic theory is that people can be motived by the intrinsic satisfaction they find in doing tasks. When they find their work to be enjoyable and meaningful, people will like their jobs and will be motivated to perform their jobs well (Hackman and Oldhams, 1976). The characteristics model see figure 2-2. Figure 2-2 Hackman and Oldhams (1976) Job Characteristics Model Core Characteristics Critical Outcomes Psychological States Skill Variety Task Identity Task Significance Experienced Meaningfulness Autonomy Experienced Responsibility Feedback Knowledge of Results Work Motivation Job Performance Job Satisfaction Attendance Growth Need Strength Source: Hackman and Oldhams, 1976 Organizational Constrains Conditions of the job environment that interfere with employee job performance are called organizational constraints. The constraints come from many aspects of the job, including other people and the physical work environment. As the study of Peters and OConnor (1980), organizational constraints have been shown to relate to job satisfaction. Significant relations have been found between various measures of constraints and job satisfaction (Jex and Gudanowski, 1992; Keenan and Newton, 1984; OConor et al., 1984; Spector et al., 1988). OConnor, Peters, Rudolf and Pooyan (1982) reported correlations of organizational constraints with five job satisfaction facets which are coworker, pay, promotion, supervision and work itself. Work-Family Conflict Work-family conflict has been found to correlate significant with job satisfaction. Employees who experience high levels of conflict tend to report low levels of job satisfaction (Bedeian, Burke and Moffett, 1988; Holahan and Gilbert, 1979; Lewis and Cooper, 1987; Rice, Frone and McFarlin, 1992). Organizations can adopt policies that either help people cope with or reduce work-family conflict. Thomas and Ganster (1995) studied the impact of organization policies and supervisor behavior on employee experience of work-family conflict and job satisfaction. Their research provides evidence that organizational policies such as child care and flexible work schedules can reduce work-family conflict and enhance job satisfaction. Behavior by supervisors that supports employees with family responsibilities was also found to have positive effects. Pay The correlation between level of pay and job satisfaction tends to be surprisingly small. Spector (1985) found a mean correlation between level of pay and job satisfaction. However, although pay level is not an important issue, pay fairness can be very important. Rice, Phillips and McFarlin (1990) reported a moderately large correlation between pay level and job satisfaction in a sample of mental health professionals who all had the same job. Workload Workload has been found correlated with job dissatisfaction as well as other job strains (Jex and Beehr, 1991). Jamal (1990) found significant negative correlations of workload with job satisfaction, and Karasek, Gardell and Lindell (1987) found that workload was negatively associated with job satisfaction. Control Control has been found to correlate significantly with all three categories of job strains (Jex and Beehr, 1991). Spector (1986) showed the mean correlations across studies of relations between control and job satisfaction. Spector, P.E. (2000) Industrial and Organizational Psychology, 2nd ed, John Wiley Sons, New York, p.19. Poulin, J. E., and Walter, C. A. (1992) Retention Plans and Job Satisfaction of Gerontological Social Workers, Journal of Gerontological Social Work, 19, pp. 99-114. Porter, L. W. (1962), Job attitudes in management: I. Perceived deficiencies in need fulfillment as a function of job level. Journal of Applied Psychology, 46, 375-384. Wolf, M. G. (1970), Need gratification theory: A theoretical reformulation of job satisfaction/dissatisfaction and job motivation. Journal of Applied Psychology, 54, 87-94. 2.3.2 The Consequences of Job Satisfaction and Dissatisfaction There are many positive or negative outcomes that relate to job satisfaction or dissatisfaction. These include not only work variables such as job performance and turnover but also non-work variables such as health and life satisfaction. Job Performance In fact, a large body of research shows that the relationship between satisfaction and performance is positive but usually very low and often inconsistent (Iaffaldano and Muchinsky, 1985). Why is this correlation between job attitudes and job behavior so low? Intuition suggests that we might work harder to pay back the organization for a satisfying job. However, intuition also suggests that we might be so busy enjoying our satisfying job that we have little time to be productive. For example, satisfying coworkers and a pleasant superior might lead us to devote more time to social interactions than to work. These contradictory intuitions provoke suspicion that the satisfaction causes performance might be incorrect. Iaffaldano, M.T. and Muchinsky, P.M. (1985), Jo satisfaction and job performance: A meta-analysis. Psychological Bulletin, 97, 251-273. Organizational Citizenship Behavior Organizational citizenship behavior (OCB) is behavior by an employee intended to help coworkers or the organization that contributes to organizational effectiveness (Organ, 1988; Schnake, 1991). Schnake (1991) hypothesized that OCB is caused by good treatment from the supervisor and by job satisfaction. In fact, job satisfaction and OCB have been found to intercorrelate (Becker and Billings, 1993; Farh, Podsakoff and Organ, 1990) Withdrawal Behavior Many theories hypothesize that people who dislike their jobs will avoid them, either permanently by quitting or temporarily by being absent or coming in late. Absence is a phenomenon that can reduce organizational effectiveness and efficiency by increasing labour costs. On many jobs, floaters or substitutes are required for each absent employee. The employee might continue to get paid, resulting in increased costs to pay substitutes. Where absence rates among employees is high, the costs can be quite high. Not surprisingly, organizations are concerned about absence. Theories of absence hypothesize that job satisfaction plays a critical role in an employees decision to be absent (Steers and Rhodes, 1987). People who dislike their jobs should be expected to avoid coming to work. On the other hand, most theories of turnover view turnover as the result of employee job dissatisfaction (Bluedorn, 1982; Mobley, Griffeth, Hand and Meglino, 1979). People who dislike their jobs will try to fin d alternative employment. Studies have been consistently in showing a correlation between job satisfaction and turnover (Crampton and Wagner, 1994; Hulin, Roznowski and Hachiya, 1985). Furthermore, it seems certain that this correlation is causal job dissatisfaction leads to turnover. Models of turnover place job satisfaction in the center of a complex process that involves factors both inside and outside of the employing organization. Figure 2-2 is a simplified model that shows how this process might work. Characteristics of the individual combine with characteristics of the job environment in determining level of job satisfaction. If the job satisfaction level is sufficiently low, the person will develop a behavioral intention to quit the job. That intention may lead to job search activities, which if successful will lead to turnover. Alternate employment opportunities are important because a person is not likely to quit without another job offer. Figure 2-2 Model of Employee Turnover as a Function of Job Satisfaction and Unemployment Rate Organization Factors Person Factors Job Satisfaction Intent to quit Search Behavior Turnover Availability of Alternatives Source: Spector, 1997 Burnout Burnout is a distressed emotional/psychological state experienced on the job. Where job satisfaction is an attitudinal response, burnout is more of an emotional response to the job. Burnout theory proposes that a person who is in a state of burnout experiences symptoms of emotional exhaustion and low work motivation, not unlike depression. Burnout correlates significantly with job satisfaction in that dissatisfied employees are likely to report high levels of burnout (Bacharach, Bamberger and Conley, 1991; Shirom, 1989). Physical Health and Psychological Well-Being Concerns have been raised that both physical and psychological health might be influenced by job attitudes. Individuals who dislike their jobs could experience adverse health outcomes. These outcomes include both physical symptoms and psychological problems (Spector, 1997). It has also been suggested that job dissatisfaction results in a shortened lifespan (Palmore, 1969). Many studies have been shown a link between health and job satisfaction. For example, researchers have reported significant correlations between job satisfaction and physical or psychosomatic symptoms, such as headache and upset stomach (Begley and Czajka, 1993; Fox, Dwyer and Ganster, 1993; Lee, Ashford and Bobko, 1990; O Driscoll and Beehr, 1994). Job dissatisfaction has also been found to be associated with emotional stated of anxiety (Jex and Gudanowski, 1992; Spector et al., 1988) and depression (Bluen, Barling and Burns, 1990; Schauboeck et al., 1992). Counterproductive Behavior Counterproductive behavior includes aggression against coworkers, aggression against the employer, sabotage and left (Spector, 1997). These behaviors have many causes, but often, they are associated with dissatisfaction and frustration at work. Chen and Spector (1992) found that job satisfaction correlated significantly with employee reports of engaging in aggression against others, hostility toward others, sabotage, and theft at work. Keenan and Newton (1984) found a relation between experiencing feelings of hostility at work and job satisfaction as well. Dissatisfied employees are more likely than their satisfied counterparts to engage in all of these behaviors. Life Satisfaction The research suggests that feelings in one area of life affect feelings in other areas. A person who is satisfied on the job is likely to be satisfied with life in general (Weaver, 1987). Studies consistently find that job satisfaction and life satisfaction are moderately and positively correlated (Judge and Watanabe, 1993; Lance, Lautenschlager, Sloan and Varca, 1989; Schaubroeck et al., 1992; Weaver, 1987). 2.4 Employee Satisfaction and Organizational Performance Organizational performance is a multidimensional concept. As illustrated by the list of thirty criterion measures identified by Cambell (1997). Performance is measured in terms of output (inappropriately referred to as productivity in the table) and outcome, profit, internal process and procedures, organizational structures, employee attitudes, organizational responsiveness to the environment and so on. More recently, one approach to measure organizational performance has become popular. This approach attempts to capture some of the contradictory nature of organizational performance is termed the balanced scorecard (Kaplan and Norton, 1992, 1993, 1996). This aims to measure performance in terms of four sets of indicators, each taking a different perspective (Kaplan and Norton 1996:76): Financial: to succeed financially, how should we appear to our shareholders? Customer: to achieve our vision, how should we appear to our customers? Internal business process: to satisfy our shareholders and customers, what business processes must we excel at? Learning and growth: to achieve our vision, how will we sustain our ability to change and improve? Therefore, about the relationship between employee satisfaction and organizational performance, the service-profit chain concept supported that there are direct relationships between profitability, customer loyalty, and employee satisfaction, loyalty, and productivity (Heskett et al. 1994). Moreover, a study conducted by a national retailer found that a happy employee will stick with the company, give better service to the customer and recommend company products to others (Wall Street Journal July 22, 1998). Other study of the 100 Best Companies to Work For finds that the companies with the most satisfied employees had an above-average annual return to shareholders (Fortune December 1, 1998). A Gallup study finds positive correlation between employee satisfaction and financial performance (Economist August 8, 1998). What is more, there are many studies about different industries also approved that the employee satisfaction correlated with organizational performance. Such as Kaplan an d Norton (1996) has found significant correlation between employee morale and customer satisfaction in an oil company. A survey of hospital employees finds significant correlations between nursing-staff satisfaction scores and patient loyalty (Atkins, Marshall and Javalgi 1996). Another correlational study using data collected for 298 public schools finds support for the link between satisfaction levels of teachers and school performance (Ostroff 1992). Thus, according to the previous literature, employs satisfaction is correlated to customer loyalty, financial performance, which in turn, affects the organizational performance.

Vocab for Ap Human Geography

Acid DepositionSulfur oxides and nitrogen oxides, emitted by burning fossil fuels, enter the atmosphere– where they mix with oxygen and woter to form sulfuric acid and nitric acid– and return to Earth's surface.Acid PrecipitationConversion of sulfur oxides and nitrogen oxides to acids that return to Earth as rain snow or fog Acitve Solar Energy SystemsSolar energy system that collects energy through the use of of mechanical devices like photovoltaic cells or flat-plate collectors AgribusinessCommercial agriculture characterized by integration of different steps in the food-proccessing industry, usually through the ownership by large corporations.Agricultural DensityThe ratio of the number of farmers to the total amount of land suitable for agriculture Agricultural RevoluionThe time when human beings first domesticated plants and animals and no longer relied entirely on hunting and gathering. AgricultureThe deliberate effort to modify a portion of the Earth's surface thr ough the cultivation of crops and the raising of livestock for sustenence or economic gain. Air PollutionConcentration of trace substances such as carbon monoxide, sulfur oxide, hydrocarbons, and solid particulates, at a greater level than occurs in average air.Animate PowerPower supplied by people or animals. AnimismBelief that objects, such as plants and stones, or natural events, such as thunderstorms and earthquakes, have discrete spirit and concious life. AnnexationLegally adding land area to a city in the United States ApartheidLaws (no longer in effect) in South Africa that physicall separated different races into different geographic areas. Arithmic DensityThe total number of people divided by the total land area. Autonomous ReligionA religion that does not have a central authority but shares ideas and cooperates informally.Balance of PowerCondition of roughly equal strength between opposing countries or alliances of countries. Balkanizationprocess by which a state breaks do wn through conflicts among its ethnicities. BalkanizedA small geographic area that could not be successfully organized into one or more stable states because it was inhabited by many ethnicities with complex, long-standing antagonisms toward each other. Base LineAn east-west line designated under the Land Ordinance of 1785 to facilitate the surveying and numbering of townships in the United States.Basic IndustriesIndustries that sell their products or services primarily to consumers outside the settlement Biochemical Oxygen DemandAmount of oxygen required by aquatic bacteria to decompose given load of organic waste; a measure of water pollution. BiodiversityThe number of species within a specific habitat. Biomass FuelFuel that derives from plant material and animal waste. BlockbustingA process by which real estate agents convinced white property owners to sell their houses at low prices because of fear that black families would soon be moving into the neighborhood.BoundaryInvisible line that marks the extent of a state territory. Brain DrainLarge-scale emigration by talented people. Branch (of a religion)A large and fundamental division within a religion. Break-of-Bulk PointA location where transfer is possible from one mode of transportation to another. Breeder reactorA nuclear power plant that creates its own fuel from plutonium. British Received PronunciationThe dialect of English associated with upper-class Britons living in the London area and now considered standard in the United Kingdom.Bulk-gaining IndustryAn industry in which the final product weighs more or comprises a greater volume than the inputs. Bulk-reducing IndustryAn industry in which the final product weighs less or comprises a lower volume than the inputs. Business ServicesServices that primarily meet the needs of other businesses. CartographyThe science of making maps. CasteThe class or distinct hereditary order into which a hindu is assigned according to religious law. Census TractAn area delineated by the U. S, Bureau of the Census for which statistics are published; in urbanized ares, they correspond roughly to neighborhoods.CensusA compete enumeration of a population. Central Business DistrictThe area of the city where retail and office activities are clustered. Central Place TheoryA theory that explains the distribution of services, based on the fact that settlements serve as centers of market areas for services; larger settlements are fewer and farther apart than smaller settlements and provide services for a larger number of people who are willing to travel further. Central PlaceA market center for the exchange of services by people attracted from the surrounding area.Centripetal ForceAn attitude that tends to unify people and enhance a state. Cereal GrainA grass yielding grain for food. ChaffHusks of grain separated from the seed by threshing. Chain MigrationMigration of paople to a specific location because of relatives or people of the same nationality pre viously migrated there. ChlorofluorocarbonA gas used as a solvent, a propelant in aerosols, a refrigerant, and in plastics foams and fire extinguishers. CirculationShort-term, repetative, or cyclical movemens that recur on a regular basis. City-stateA sovreign state comprising a city and its immediate hinterland.Clustered Rural SettlementA rural settlement in which the houses and farm buildings of each family are situated close to each other and fields surround the settlements. ColonialismAttempt by one country to establish settlements and to impose its political, economic, and cultural principles in another territory. ColonyA territory that is legally tied to a sovereign state rather than completely independent. CombineA machine that reaps, threshes, and cleans grain while moving over a field. Commercial AgricultureAgriculture undertaken primarily to generate products for sale off the farm.Compact StateA state in which the distance from the center to any boundary does not vary sign ificantly. ConcentrationThe spread of something over a given area. Concentric Zone ModelA model of the internal structure of cities in which social groups are spatially arranged in a series of rings. ConnectionsRelationships among people and objects across the barrier of space. ConservationThe sustainable use and management of a natural resource, through consuming at a less rapid rate than it can be replaced. Consumer ServicesBusinesses that provide services primarily to individual consumers, including retail services and personal services.Contagious DiffusionThe rapid, widespread diffusion of a feature or trend throughout a population. CosmogonyA set of religious beliefs concerning the origin of the universe. Cottage IndustryManufacturing based in homes rather than in a factory, commonly found before the Industrial Revolution. Council of GovernmentA cooperative agency consisting of representatives of local governments in a metropolitan area in the United States. Counterurbanization Net migration from urban to rural areas in more developed countries.CreoleA language that results from the mixing of a colonizer's language with the indigenous language of the people being dominated Crop RotationThe practice of rotating use of different fields from crop to crop each year, to avoid exhausting the soil. CropGrain or fruit gathered from a field as a harvest during a particular season. Crude Birth RateThe total number of live births in a year for every 1,000 people alive in the society. Crude Death RateThe total number of deaths in a year for every 1,000 people alive in the society. Cultural EcologyGeographic approach that emphasizes human-environment relationships.Cultural LandscapeFashioning of a natural landscape by a cultural group. CultureThe body of customary beliefs, social forms, and material traits that together constitute a group of people's distinct tradition. CustomThe frequent repetition of an act, to the extent that it becomes characteristic of the group o f people performing the act. Demographic TransitionThe process of change in a society's population from a condition of high crude birth and death rates and low rate of natural increase to a condition of low crude birth and death rates, low rate of natural increase, and a higher total population.Demographythe scientific study of population characteristics DensityThe frequency with which something exists within a given unit of area. Density Gradientthe change in density in an urban area from the center to the periphery Dependency RatioThe number of people under the age of 15 and over age 64, compares to the number of people active in the labor force. DesertificationDegradation of land, especially in semiarid areas, primarily because of human actions like excessive crop planting, animal grazing, and tree cutting. DenominationA division of a branch that unites a number of local congregations in a single legal and administrative body.DevelopmentA process of improvement in the material co nditions of people through diffusion of knowledge and technology. DialectA regional variety of a language distinguished by vocabulary, spelling, and pronunciation. Diffusionthe process of spread of a feature or trend from one place to another over time. DioceseThe basic unit of geographic organization in the Roman Catholic Church Dispersed Rural SettlementA rural settlement pattern characterized by isolated farms rather than clustered villages. Distance DecayThe diminishing in importance and eventual disappearance of a henomenon with increasing distance from its origin. DistributionThe arrangement of something across Earth's surface. Double CroppingHarvesting twice a year from the same field. Doubling TimeThe number of years needed to double a population, assuming a constant rate of natural increase. EbonicsDialect spoken by some African-Americans. Economic BaseA community's collection of basic industries. EcumeneThe portion of Earth's surface occupied by permanent human settlement. Edge Citya large node of office and retail activities on the edge of an urban area Elongated StateA state with a long, narrow shape.EmigrationMigration from a location. Enclosure MovementThe process of consolidating small landholdings into a smaller number of larger farms in England during the eighteenth century. Environmental DeterminismA nineteenth- and early twentieth-century approach to the study of geography that argued that the general laws sought by human geographers could be found in the physical sciences. Geography was therefore the study of how the physical environment caused human activities. EpidemiologyBranch of medical science concerned with the incidence, distribution, and control of diseases that affect large numbers of people.Epidemiological Transitiondistinctive causes of death in each stage of the demographic transition Ethnic CleansingProcess in which more powerful ethnic group forcibly removes a less powerful one in order to create an ethnically homogeneous reg ion. Ethnic ReligionA religion with a relatively concentrated spatial distribution whose principles are likely to be based on the physical characteristics of the particular location in which its adherents are concentrated. EthnicityIdentity with a group of people that share distinct physical and mental traits as a product of common heredity and cultural traditions.Expansion DiffusionThe spread of a feature or trend among people from one area to another in a snowballing process. Extinct languageA language that was once used by people in daily activities but is no longer used. Federal StateAn internal organization of a state that allocates most powers to units of local government. FerrousMetals, including iron ore, that are utilized in the production of iron and steel. Filteringa process of change in the use of a house, from single-family owner occupancy to abandonment FissionThe splitting of an atomic nucleus to release energy.FloodplainThe area subject to flooding during a given num ber of years according to historical trends. Folk CultureCulture traditionally practiced by a small, homogeneous, rural group living in relative isolation from other groups. Forced MigrationPermanent movement compelled usually by cultural factors. Fordist ProductionForm of mass production in which each worker is assigned one specific task to perform repeatedly. Formal RegionAn area within which everyone shares in common one or more distinctive characteristics. Fossil FuelEnergy source formed from the residue of plants and animals buried millions of years ago.Fragmented StateA state that includes several discontinuous pieces of territory. FranglaisA term used by the French for English words that have entered the French language, a combination of franfais and anglai. † the French words for â€Å"French† and â€Å"English,† respectively. FrontierA zone separating two states in which neither state exercises political control. Functional RegionAn area organized around a node or focal point FundamentalismLiteral interpretation and strict adherence to basic principles of a religion (or a religious branch, denomination, or sect). FusionCreation of energy by joining the nuclei of two hydrogen atoms to form helium.Gender Empowerment MeasureCompares the ability of women and men to participate in economic and political decision making. Gender-Related Development IndexCompares the level of development with that of both sexes. Gentrificationa process of converting an urban neighborhood from a predominantly low-income renter-occupied area to a predominantly middle-class owner-occupied area Geothermal EnergyEnergy from steam or hot water produced from hot or molten underground rocks. GerrymanderingProcess of redrawing legislative boundaries for the purpose of benefiting the party in power.GhettoDuring the Middle Aes, a neighborhood in a city set up by law to be inhabited only by Jews; now used to denote a section of a city in which members of any minority group live because of social, legal, or economic pressure. GISA computer system that stores, organizes, analyzes, and displays geographic data. GlobalizationActions or processes that involve the entire world and result in making something worldwide in scope. Global Positioning SystemA system that determines the precise position of something on Earth through a series of satellites, tracking stations, and eceivers. GrainSeed of cereal grass. Gravity ModelA model that holds that the potential use of a service at a particular location is directly related to the number of people in a location and inversely related to the distance people must travel to reach the service. Green RevolutionRapid diffusion of new agricultural technology, especially new high-yield seeds and fertilizers. GreenbeltA ring of land maintained as parks, agricultural, or other types of open space to limit the sprawl of an urban area.Greenhouse EffectAnticipated increase in Earth's temperature, caused by carbon dioxid e (emitted by burning fossil fuels) trapping some of the radiation emitted by the surface. Greenwhich Mean Timethe time in that time zone encompassing the prime meridian or 0 longitude Gross Domestic ProductThe value of the total output of goods and services produced in a country in a given time period (normally one year). Guest WorkersWorkers who migrate to the more developed countries of Northern and Western Europe, usually from Southern of Eastern Europe or from North Africa, in search of higher-paying jobs.HabitA repetative act by a particular individual. HearthThe region from which innovative ideas originate. Hierarchical DiffusionThe spread of an idea from persons or nodes of authority or power to other persons or places Hierarchical ReligionA religion in which a central authority exercises a high degree of control. HorticultureThe growing of fruits, vegetables, and flowers. HullThe outer covering of steel. Human Development IndexIndicator of level of development for each coun try, constructed by United Nations, combining income, literacy, education, and life expectancy Hydroelectric PowerPower generated from moving water.IdeogramsThe system of writing used in China and other East Asian countries in which each symbol represents an idea or concept rather than a specific sound, as is the case with letters in English. ImmigrationMigration to a new location. ImperialismControl of a territory already occupied and organized by an indigenous society. Inanimate PowerPower supplied by machines. Industrial RevolutionA series of improvements in industrial technology that transformed the process of manufacturing goods. Infant Mortality RateThe total number of deaths in a year among infants under one year old for every 1,000 live births in a society.Intensive Subsistence AgricultureA form of subsistence agriculture in which farmers must expend a relatively large amount of effort to produce the maximum feasible yield from a parcel of land. Internal MigrationPermanent M ovement within a particular country. International Date LineAn arc that for the most part follows 180 ° longitude, although it deviates in several places to avoid dividing land areas. When you cross the International Date Line heading east (toward America), the clock moves back 24 hours, or one entire day. When you go west (toward Asia), the calendar moves ahead one day.International MigrationPermanent movement from one country to another. Interregional MigrationPermanent movement from one region of a country to another. Intervening ObstacleAn environmental or cultural feature of the landscape that hinders migration. Intraregional MigrationPermanent movement within one region of a country. IsoglossA boundary that separates regions in which different language usages predominate. Isolated LanguageA language that is unrelated to any other languages and therefore not attached to any language family.Labor-intensive IndustryAn industry for which labor costs comprises a high percentage o f total expenses Landlocked StateA state that does not have a direct outlet to the sea. Land ordinance of 1785A law that divided much of the United States into a system of townships to facilitate the sale of land to settlers. LanguageA system of communication through the use of speech, a collection of sounds understood by a group of people to have the same meaning. Language BranchA collection of languages related through a common ancestor that existed several thousand years ago.Differences are not as extensive or old as with language families, and archaeological evidence can confirm that these derived from the same family. Language FamilyA collection of languages related to each other through a common ancestor long before recorded history. Language GroupA collection of languages within a branch that share a common origin in the relatively recent past and display relatively few differences in grammar and vocabulary. LatitudeThe numbering system used to indicate the location of parall els drawn on a globe and measuring distance north and south of the equator.Less Developed CountryAlso known as a developing country, a country that is at a relatively early stage in the process of economic developement. Life ExpectancyThe average number of years an individual can be expected to live, given current social, economic, and medical conditions. Life expectancy at birth is the average number of years a newborn infant can expect to live. Lingua FrancaA language mutually understood and commonly used in trade by people who have different native languages. Literacy Ratepercentage of people who can read and write.Literary TraditionA language that is written as well as spoken. LocationThe position of anything on Earth's surface. LongitudeThe numbering system used to indicate the location of meridians drawn on a globe and measuring distance east and west of the prime meridian (0 °). MapA two-dimensional, or flat, representation of Earth's surface or a portion of it. Maquiladora Factories built by U. S. companies in Mexico near the U. S. border, to take advantage of much cheaper labor costs in Mexico. Market AreaThe area surrounding a central place, from which people are attracted to use the place's goods and services.Medical RevolutionMedical technology invented in Europe and North America that is diffused to the poorer countries of Latin America, Asia, and Africa. Improved medical practices have eliminated many of the traditional causes of death in poorer countries and enabled more people to live longer and healthier lives. Mental MapAn internal representation of a portion of Earth's surface based on what an individual knows about a place, containing personal impressions of what is in a place and where places are located. MeridianAn arc drawn on a map between the North and South poles.Metropolitan Statisical AreaIn the United States, a central city of at least 50,000 population, the county within which the city is located, and adjacent counties meeting on e of several tests indicating a functional connection to the central city. Micropolitan Statistical AreaAn urbanized area of between 10,000 and 50,000 inhabitants, the county in which it is found, and adjacent counties tied to the city. MicrostateA state that encompasses a very small land area. MigrationForm of relocation diffusion involving permanent move to a new location.Migration TransitionChange in the migration pattern in a society that results from industrialization, population growth, and other social and economic changes that also produce the demographic transition. MilkshedThe area surrounding a city from which milk is supplied. MissionaryAn individual who helps to diffuse a universalizing religion. MobilityAll types of movement from one location to another. Monotheismthe doctrine or belief that there is only one God More Developed CountryAlso known as a relatively developed county or a developed country, a country that has progressed in relativety far along a continuum of development.Multi-ethnic StateA state that contains more than one ethnicity. Multinational StateState that contains two or more ethnic groups with traditions of self-determination that agree to coexist peacefully by recognizing each other as distinct nationalities. NationalismLoyalty and devotion to a particular nationality. NationalityIdentity with a group of people that share legal attachment and personal allegiance to a particular place as a result of being born there. Nation-stateA state who's territory corresponds to that occupied by a particular ethnicity that has been transformed into a nationality.Natural Increase RateThe percentage growth of a population in a year, computed as the crude birth rate minus the crude death rate. Net MigrationThe difference between the level of immigration and the level of emigration. New International Division of LaborTransfer of some types of jobs, especially those requiring low-paid less skilled workers, from more developed to less developed countries. Nonbasic IndustriesIndustries that sell their products primarily to consumers in the community. Nonferrousmetals utilized to make products other than iron and steel.Nonrenewable EnergyA source of energy that is a finite supply capable of being exhausted. Official LanguageThe language adopted for use by the government for the conduct of business and publication of documents. OverpopulationThe number of people in an area exceeds the capacity of the environment to support life at a decent standard of living. Ozonegas that absorbs ultraviolet solar radiation, found in the stratosphere, a zone between 15 and 50 kilometers (9 to 30 miles) above Earth's surface. PaddyMalay word for wet rice, commonly but incorrectly used to describe a sawah. aganA follower of a polytheistic religion in ancient times. PandemicDisease that occurs over a wide geographic area and affects a very high proportion of the population. ParallelA circle drawn around the globe parallel to the equator and at right angles to the meridians. Passive Solar Energy SystemsSolar energy that collects energy without the use of mechanical devices. Pastoral NomadismA form of subsistence agriculture based on herding domesticated animals. PastureGrass or other plants grown for feeding grazing animals, as well as land used for grazing. PatternThe geometric or regular arrangement of something in a study area.Perforated Statea state that completely surrounds another one Peripheral ModelA model of North American urban areas consisting of an inner city surrounded by large suburban residential and business areas tied together by a beltway or ring road. Personal ServicesServices that provide for the well-being and personal improvement of individual consumers. Photochemical SmogAn atmospheric condition formed through a combination of weather conditions and pollution, especially from motor vehicle emissions. Photovoltaic CellSolar energy cells, usually made from silicon, that collect solar rays to generate electricity.Physiological DensityThe number of people per unit of area of arable land, which is land suitable for agriculture. Pigdin LanguageA form of speech that adopts a simplified grammar and limited vocabulary of a lingua franca, used for communications among speakers of two different languages. PilgrimageA journey to a place considered sacred for religious purposes. Placea specific point on earth distinguished by a particular character. PlantationA large farm in tropical and subtropical climates that specializes in the production of one or two crops for sale, usually to a more developed country.Polderland created by the Dutch by draining water from an area. PollutionAddition of more waste than a resource can accommodate. PolytheismBelief in or worship of more than one god. Popular CultureCulture found in a large, heterogeneous society that shares certain habits despite differences in other personal characteristics. Population PyramidA bar graph representing the distribution of population by age and sex. PossibilismThe theory that the physical environment may set limits on human actions, but people have the ability to adjust to the physical environment and choose a course of action from many alternatives.Post-Fordist ProductionAdoption by companies of flexible work rules, such as the allocation of workers to teams that perform a variety of tasks. Potential ReserveThe amount of energy in deposits not yet identified but thought to exist. PreservationMaintenance of a resource in its present condition, with as little human impact as possible. Primary SectorThe portion of the economy concerned with the direct extraction of materials from Earth's surface, generally through agriculture, although sometimes by mining, fishing, and forestry.Primate CityThe largest settlement in a country, if it has more than twice as many people as the second-ranking settlement. Primate City RuleA pattern of settlements in a country, such that the largest settlement has more than t wice as many people as the second-ranking settlement. Prime Agricultural LandMost productive farmland. Prime MeridianThe meridian, designated at 0 ° longitude, which passes through the Royal Observatory at Greenwich, England. Principal MeridianA north-south line designated in the Land Ordinance of 1785 to facilitate the surveying and numbering of townships in the United States.Producer ServicesServices that primarily help people conduct business. ProductivityThe value of a particular product compared to the amount of labor needed to make it. ProjectionThe system used to transfer locations from Earth's surface to a flat map. Prorupted Statean otherwise compact state with a large projecting extension. Proven ReserveThe amount of a resource remaining in discovered deposits. Public HousingHousing owned by the government; in the United States, it is rented to low-income residents, and the rents are set at 30 percent of the families' incomes.Public ServicesServices offered by the govern ment to provide security and protection for citizens and businesses. Pull FactorsFactors that induce people to move to a new location. Push FactorsFactors that induce people to leave old residences. QuotaIn reference to migration, a law that places maximum limits on the number of people who can immigrate to a country each year. RaceIdentity with a group of people descended from a common ancestor. RacismBelief that race is the primary determinant of human traits and capacities and that racial differences produce an inherent superiority of a particular race.RacistA person who subscribes to the beliefs of racism. Radioactive WasteParticles from a nuclear reaction that emit radiation; contact with such particles may be harmful or lethat to people and must therefore be safely stored for thousonds of years. RanchingA form of commercial agriculture in which livestock graze over an extensive area. RangeThe maximum distance people are willing to travel to use a service. Rank-size RuleA patte rn of settlements in a country, such that the nth largest settlement is 1/n the population of the largest settlement. ReaperAmachine that cuts grain standing in the feild.Recyclingthe separation, collection, processing, marketing, and reuse of unwanted material RedliningA process by which banks draw lines on a map and refuse to lend money to purchase or improve property within the boundaries. RefugeesPeople who are forced to migrate from their home country and cannot return for fear of persecution because of their race, religion, nationality, membership in a social group, or political opinion. RegionAn area distinguished by a unique combination of trends or features. Regional StudiesAn approach to geography that emphasizes the relationships among social and physical phemona in a particular area study.Relocation DiffusionThe spread of a feature or trend through bodily movement of people from one place to another. Remote SensingThe acquisition of data about Earth's surface from a sate llite orbiting the planet or other long-distance methods. Renewable EnergyA resource that has a theoretically unlimited supply and is not depleted when used by humans. ResourceA substance in the environment that is useful to people, is economically and technologically feasible to access, and is socially acceptable to use. Retail ServicesServices that provide goods for sale to consumers.Ridge TillageSystem of planting crops on ridge tops, in order to reduce farm production costs and promote greater soil conservation. Right-to-work StateA U. S. state that has passed a law preventing union and company from negotiating a contract that requires workers to join a union as a condition of e3mployment. Rush Hourfour consecutive 15 minute periods in the morning and evening with the heaviest volumes of traffic. Sanitary LandfillA place to deposit solid waste, where a layer of earth is bulldozed over garbage each day to reduce emissions of gases and odors from the decaying trash, to minimize fi res, and to discourage vermin.SawahA flooded feild for growing rice. ScaleGenerally, the relationship between the portion of Earth being studied and Earth as a whole, specifically the relationship between the size of an object on a map and the size of the actual feature on Earth's surface. Secondary SectorThe portion of the economy concerned with manufacturing useful products through processing, transforming, and assembling raw materials. SectA relatively small group that has broken away from an established denomination. SectionA square normally 1 mile on a side. The Land Ordinance of 1785 divided townships in the United States into 36 sections.Sector ModelA model of the internal structure of cities in which social groups are arranged around a series of sectors, or wedges, radiating out from the central business district (CBD). Seed AgricultureReproduction of plants through annual introduction of seeds, which result from sexual fertilization. Self-determinismConcept that ethnicities have the right to govern themselves. Serviceany activity that fulfills a human want or need and returns money to those who provide it. SettlementA permanent collection of buildings and inhabitants. Sex RatioThe number of males per 100 females in a population.SharecropperA person who works fields rented from a landowner and pays the rent and repays loans by turning over to the landowner a share of the crops. Shifting CultivationA form of subsistence agriculture in which people shift activity from one field to another; each field is used for crops for relatively few years and left fallow for a relatively long period. SiteThe physical character of a place. Site FactorsLocation factors related to the costs of factors of production inside the plant, such as land, labor, and capital. SituationThe location of a place relative to other places.Situation FactorsLocation factors related to the transportation of materials into and from a factory. Slash-and-burn AgricultureAnother name for shif ting cultivation, so named because feilds are cleared by slashing the vegetation and burning the debris. SolsticeTime when the Sun is farthest from the equator. SovreigntyAbility of a state to govern its territory free from control of its internal affairs by other states. SpaceThe physical gap or interval between two objects. Space-time CompressionThe reduction in the time it takes to diffuse something to a distinct place, as a result of improved communications and transportation systems.SpanglishCombination of Spanish and English, spoken by Hispanic-Americans. SprawlDevelopment of new housing sites at relatively low density and at locations that are not contiguous to the existing built-up area. Spring WheatWheat planted in the spring and harvested in the late summer. Squatter SettlementAn area within a city in a less developed country in which people illegally establish residences on land they do not own or rent and erect homemade structures. Standard LanguageThe form of a language used for official government business, education, and mass communications.StateAn area organized into a political unit and ruled by an established government with control over its internal and foreign affairs. Stimulus DiffusionThe spread of an underlying principle, even though a specific characteristic is rejected. Structural Adjustment ProgramEconomic policies imposed on less developed countries by international agencies to create conditions encouraging international trade, such as raising taxes, reducing government spending, controlling inflation, selling publicly owned utilities to private corporations, and charging citizens more for services.Subsistence AgricultureAgriculture designed primarily to provide food for direct consumption by the farmer and the farmer's family Sustainable AgricultureFarming methods that preserve long-term productivity of land and minimize pollution, typically by rotating soil- restoring crops with cash crops and reducing in-puts of fertilizer and pes ticides. Sustainable DevelopmentThe level of development that can be maintained in a country without depleting resources to the extent that future generations will be unable to achieve a comparable level of development. SwiddenApatch of land cleared for planting through slashing and burning.TabooA restriction on behavior imposed by social custom. Tertiary SectorThe portion of the economy concerned with transportation, communications, and utilities, sometimes extended to the provision of all goods and services to people in exchange for payment. TextileA fabric made by weaving, used in making clothing TreshTo beat out grain from stalks by trampling it. ThresholdThe minimum number of people needed to support the service ToponymThe name given to a portion of Earth's surface. Total Fertility RateThe average number of children born to a woman during her childbearing years.TownshipA square normally 6 miles on a side. The Land Ordinance of 1785 divided much of the United States into a serie s of townships. Trading BlocA group of neighboring countries that promote trade with each other and erect barriers to limit trade with other blocs TranshumanceThe seasonal migration of livestock between mountains and lowland pastures. Transitional CorporationA company that conducts research, operates factories, and sells products in many countries, not just where its headquarters or shareholders are located Transportation and Information ServicesServices that diffuse and distribut services.Triangular Slave TradeA practice, primarily during the eighteenth century, in which European ships transported slaves from Africa to Caribbean islands, molasses from the Caribbean to Europe, and trade goods from Europe to Africa. Truck FarmingCommercial gardening and fruit farming, so named because truck was a Middle English word meaning batering or the exchange of commodities. UnderclassA group in society prevented from participating in the material benefits of a more developed society because of a variety of social and economic characteristics. Undocumented ImmigrantsPeople who enter a country without proper documents.Uneven DevelopmentThe increasing gap in economic conditions between core and peripheral regions as a result of the globalization of the economy. Unitary StateAn internal organization of a state that places most power in the hands of central government officials Universalizing ReligionA religion that attempts to appeal to all people, not just those living in a particular location. Urban RenewalProgram in which cities identify blighted inner-city neighborhoods, acquire the properties from private members, relocate the residents and businesses, clear the site, build new roads and utilities, and turn the land over to private developers.UrbanizationAn increase in the percentage and in the number of people living in urban settlements. Urbanized AreaIn the United States, a central city plus its contiguous built-up suburbs. Value Addedthe gross value of the product m inus the costs of raw materials and energy. Vegetative Plantingreproduction of plants by direct cloning from existing plants Vernacular RegionA place that people believe exists as part of their cultural identity. Voluntary MigrationPermanent movement undertaken by choice.Vulgar LatinA form of Latin used in daily conversation by ancient Romans, as opposed to the standard dialect, which was used for official documents. Wet RiceRice planted on dryland in a nursery, then moved to a deliberately flooded field to promote growth. WinnowTo remove chaff by allowing it to be blown away by the wind. Winter Wheatwheat planted in the fall and harvested in the early summer Zero Population GrowthA decline of the total fertility rate to the point where the natural increase rate equals zero. Zoning OrdinanceA law that limits the permitted uses of land and maximum density of development in a community.

Competitive Advantage in Fast Fashion

*CHAPTER* 3 COMPETITIVE ADVANTAGE *IN THE* FAST FASHION Fast fashion is a term used to describe clothing collections which are based on the most recent fashion trends presented at Fashion Week in both the spring and the autumn of every year. These trends are designed and manufactured quickly and cheaply to allow the mainstream consumer to take advantage of current clothing styles at a lower price. This chapter highlights the sources of competitive advantage that may exist inside the field of fast fashion, as shown in Figure 3. , studying in detail the major players who are part of: H&M, Gap, Zara and Benetton. {draw:frame} FIGURE 3. 1 : THE SOURCES OF COMPETITIVE ADVANTAGE *3. 1 *SUPPLY CHAIN A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier) to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered t o the end customer. In sophisticated supply chain systems, used products may re-enter the supply chain at any point where residual value is recyclable. Supply chains are increasingly being seen as integrated entities, and closer relationships between the organizations throughout the chain can bring competitive advantage, reduce costs, and help to maintain a loyal customer base. There are two main differences to value chains: Supply chains are more detailed since they incorporate not only activities. Supply chains connect intra-organizational value chains by products, services, and information flows. Supply chains underlie value-chains because, without them, no producer has the ability to give customers what they want, when and where they want, at the price they want. Producers compete with each other only through their supply chains, and no degree of improvement at the producer's end can make up for the deficiencies in a supply chain which reduce the producer's ability to compete. {draw:frame} FIGURE 3. 2: EXAMPLE OF SUPPLY CHAIN A typical supply chain begins with ecological and biological regulation of natural resources, followed by the human extraction of raw material, and includes several production links (e. . , component construction, assembly, and merging) before moving on to several layers of storage facilities of ever-decreasing size and ever more remote geographical locations, and finally reaching the consumer. All organizations have supply chains of varying degrees, depending upon the size of the organization and the type of product manufactured. These networks obtain supplies and components, change these materials into finished products and then distribute them to the customer. Managing the chain of events in this process is what is known as supply chain management. The Council of Supply Chain Management Professionals (CSCMP) defines Supply Chain Management as follows â€Å"Supply Chain Management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, supply chain management integrates supply and demand management within and across companies. Supply Chain Management is an integrating function with primary responsibility for linking major business functions and business processes within and across companies into a cohesive and high-performing business model. It includes all of the logistics management activities noted above, as well as manufacturing operations, and it drives coordination of processes and activities with and across marketing, sales, product design, finance and information technology. Effective management must take into account coordinating all the different pieces of this chain as quickly as possible without losing any of the quality or customer satisfaction, while still keeping costs down. The first step is obtaining a customer order, followed by production, storage and distribution of products and supplies to the customer site. Customer satisfaction is paramount. Included in this supply chain process a re customer orders, order processing, inventory, scheduling, transportation, storage, and customer service. A necessity in coordinating all these activities is the information service network. In addition, key to the success of a supply chain is the speed in which these activities can be accomplished and the realization that customer needs and customer satisfaction are the very reasons for the network. Reduced inventories, lower operating costs, product availability and customer satisfaction are all benefits which grow out of effective supply chain management. Furthermore, market demands, customer service, transport considerations, and pricing constraints all must be understood in order to structure the supply chain effectively. These are all factors, which change constantly and sometimes unexpectedly, and an organization must realize this fact and be prepared to structure the supply chain accordingly. 3. 1. 1 DECISIONS ON THREE LEVELS Supply chain management decisions are often said to belong to one of three levels; the strategic, the tactical, or the operational level. Figure 3. shows the three level of decisions as a pyramid shaped hierarchy. The decisions on a higher level in the pyramid will set the conditions under which lower level decisions are made {draw:frame} FIGURE 3. 3 HIERARCHY OF SUPPLY CHAIN DECISIONS On the strategic level long term decisions are made. According to Ganeshan and Harrison, these are related to location, production, inventory, and transportation. Location decisions are concerned with the size, number, and geo graphic location of the supply chain entities, such as plants, inventories, or distribution centers. The production decisions are meant to determine which products to produce, where to produce them, which suppliers to use, from which plants to supply distribution centers, and so on. Inventory decisions are concerned with the way of managing inventories throughout the supply chain. Transport decisions are made on the modes of transport to use. Decisions made on the strategic level are of course interrelated. For example decisions on mode of transport are influenced by decisions on geographical placement of plants and warehouses, and inventory policies are influenced by choice of suppliers and production locations. Modeling and simulation is frequently used for analyzing these interrelations, and the impact of making strategic level changes in the supply chain. On the tactical level medium term decisions are made, such as weekly demand forecasts, distribution and transportation planning, production planning, and materials requirement planning. The operational level of supply chain management is concerned with the very short term decisions made from day to day. Figure 3. 4 shows for each level types of decisions made. *3. 4 FIGURE:* DECISION-MAKING LEVELS IN SUPPLY CHAINS . 1. 2 DRIVERS OF SUPPLY CHAIN Drivers determine supply chain performance and are the managerial levers on which to guide the operational process. For each driver manager must make tradeoffs beetween efficiency (cost) and responsiveness. {draw:frame} FIGURE 3. 5: DRIVERS OF SUPPLY CHAIN Facilities Are the actual physical locations in the supply chain network where product are stored, assembled or fabricated. The two major types of facilities are: Production sites( factories) Storage sites (warehouse). Components of facilities decisions are: Location: centralize to gain economies of scale (major efficiency) or decentralize to be more responsive. Other issues include quality and costo f workers, costo f facility, infrastructure, taxes, quality of life,etc. Capacity: excess capacity allows a company to be more responsive to changes in the level of demand (major flexibility), but at the expensive of efficiency. Manufacturing methodology: decisions between a product or functional focus, between flexible or dedicated capacity. Warehousing methodology: choose between: SKU storage: stores all of one type of product together, Job lot storage: stores different products together to satisfy a particular customer or job, cross-docking: product is not actually warehoused in the facility, instead the facility is used to house a process where trucks from suppliers arrive and unload large quantities of different products. These large lots are then broken down into smaller lots. Smaller lots of different products are recombined according to the needs of the day and quickly loaded onto outbound trucks that deliver the product to their final destination. Inventory Inventory encompasses all the raw materials, work in process, and finished goods within a supply chain. Changing inventory policies can dramatically alter the supply chain’s efficiency & responsiveness. There are three basic decisions to make regarding the creation and holding of inventory: C_ycle Inventory_: this is the amount of inventory needed to satisfy demanf for the product in the period between purchases of the product. Safety Inventory: inventory that is held as a buffer against uncertainly. If demand forecasting could be done with perfect accuracy, then the only inventory that would be needed would be cycle inventory. Seasonal Inventory: this is inventory that is built up in anticipation of predictable increases in demand that occur at certain times of the year. Inventory has different impacts: Can increase amount of demand that can be met by increasing product availability Can reduce costs by exploiting economies of scale in production, transportation, and purchasing. Can be used to support a firm’s competitive strategy. More inventory increases responsiveness, less inventory increases efficiency (reduces cost). Can significantly affect material flow/cycle/throughput time because if you move your inventory faster, you don’t need as much inventory (inventory velocity). Transportation Transportations entails moving inventory from point to point in the supply chain. Components of transportation decisions are: Mode of transportation: is the manner in which a product is moved (air, truck,rail, ship, pipeline,eletronic). Each mode differs with respect to speed, size of shipments, cost, and flexibility. Routes and networks selection: are respectively paths along which a product can be shipped and a collection of locations and routes. In house or out source the transportation function. Many companies use third-party logistics provider (3PL) to perform some or all of their transportation activities. Usually companies outsource the distribution. Faster transportation allows a supply chain to be more responsive but generally less efficient. Less than full truckloads allows a supply chain to be more responsive but generally less efficient. Transportation can be used to support a firm’s competitive strategy. Customers may demand and be willing to pay for a high level of responsiveness. Information Information serves as the connection between various stages of a supply chain, allowing them to coordinate & maximize total supply chain profitability. It is also crucial to the daily operations of each stage in a supply chain for a production scheduling system. Components of information decisions are: Push versus pull: push systems (like MRP) need information on anticipated demand to create production and purchasing schedules. Pull systems (like JIT) need accurate qnd quick information on actual demand to move inventory and schedule production in the chain. Enabling technologies: many technologies exist to share and analyze information in the supply chain: EDI: electronic data interchange. ERP: enterprise re source planning. SCM software: Supply Chain Management Software Internet Forecasting & planning to anticipate and meet future demands. Available information is used to make tactical forecasts to guide the setting of monthly and quarterly production schedules & time table Coordination and information sharing Information allows supply chain to become more efficient and more responsive at the same time (reduces the need for a trade-off) {draw:frame} {draw:frame} TABELLA 3. 6 CONSIDERATIONS FOR SUPPLY CHAIN DRIVERS 3. 1. 3 SCOR The Supply Chain Operations Reference Model (SCOR Model) is one of the very few dedicated methods for supply chain modelling and has also a high relevance for many industries. The model has been developed by The Supply-Chain Council (SCC), an independent not-for-profit firm with more than 1,000 corporate members. It was first introduced in 1996 and is now available in version 8. 0. In contrast to generic process modelling methods, SCOR is actually a reference model, because it defines activities that can be found in any supply chain. In that sense, it can be regarded as a successor to the value chain model by Porter. The SCOR model covers the followings levels of abstraction: Top level ( level 1) Configuration level (level 2) Process element level (level 3) Implementation level {draw:frame} *FIGURE 3. 7*:* *SCORE PROCESS FRAMEWORK Top level SCOR defines five core management processes called process types that are relevant for all firms in a supply chain (scope of the model). Three of these process types form a sequence of source, make, and deliver. The process types are: Source (S) Processes that procure goods and services to meet planned or actual demand. Make (M) Processes that transform a product or service to a finished state to meet planned or actual demand. Deliver (D) Processes that provide finished goods and services to meet planned or actualdemand, typically including order management, transportation management,and distribution management. Return (R) Processes associated with returning or receiving returned products for any reason. These processes extend into post-delivery customer support. The top level, however, can not be instantiated, thus this level defines only the scope of the SCOR model. The modelling of actual or planned supply chains starts on the next level. Configuration level beyond the five main processes, there is a further classification of processes into three categories: Planning: processes that plan resources to meet demand in appropriate time intervals. re repeated periodically and have a great influence on the response time of the supply chain. Execution: processes as executive involved in the activities of scheduling, sequencing, processing, testing, and handling of products, affecting the cycle time of the order fulfillment. Enable: processes involving information and managerial aspects that affect the other two processes From five main processes the SCOR model identifies 26 processes of second l evel, each belonging to one of three process type defined above. For instance, categories for ‘source’ are: S1 ‘source stocked product’: The procurement, delivery, receipt and transfer of raw material items, subassemblies, product and/or services. S2 ‘source make-to-order product’: The procurement and delivery of a product that is built to a specific design or configured based on the requirements of a particular customer order. S3 ‘source engineer-to-order product’: The negotiation, procurement and delivery of engineer-to-order assemblies or specialized product or services that are designed and built based on the requirements or specifications of a particolar customer order or contract. By selecting the relevant process categories, a firm can represent its operational strategy. For instance, the relevant source categories need to be selected and mapped to respective products and/or services (thus a firm can implement multiple source categories reflecting diverse sourcing strategies). Process element level The process element level decomposes the process categories by adding process element definitions, process element information inputs/outputs, process performance metrics, and best practices. SCOR does not define functions and organizational entities for these elements, thus it strictly focuses processes. Implementation level Implementation level aims to implement management practices, defining the elements necessary to gain a competitive advantage and adapt to changes. METRICS SCOR defines metrics that measure effectiveness and efficiency of a supply chain. For this purpose, metrics form a hierarchy along the SCOR levels: Level 1 metrics relate to the overall planning of a supply chain (thus these metrics are differentiated to source, make etc. ). Level 2 and 3 metrics decompose the level 1 and 2 metrics respectively. Each level 1 metric contribute to realising a performance attribute. A performance attributes is a characteristics of the supply chain that permits it to be analysed and evaluated against other supply chains with competing strategies. For instance, a supply chain is reliable to a certain degree or not. The level 1 metrics and associated performance attributes are defined as follows: FIGURE 3. 8: THE LEVEL 1 METRICS 1. Production Strategic decisions regarding production focus on what customers want and the market demands. This first stage in developing supply chain agility takes into consideration what and how many products to produce, and what, if any, parts or components should be produced at which plants or outsourced to capable suppliers. These strategic decisions regarding production must also focus on capacity, quality and volume of goods, keeping in mind that customer demand and satisfaction must be met. Operational decisions, on the other hand, focus on scheduling workloads, maintenance of equipment and meeting immediate client/market demands. Quality control and workload balancing are issues which need to be considered when making these decisions. . Supply Next, an organization must determine what their facility or facilities are able to produce, both economically and efficiently, while keeping the quality high. But most companies cannot provide excellent performance with the manufacture of all components. Outsourcing is an excellent alternative to be considered for those products and compone nts that cannot be produced effectively by an organization’s facilities. Companies must carefully select suppliers for raw materials. When choosing a supplier, focus should be on developing velocity, quality and flexibility while at the same time reducing costs or maintaining low cost levels. In short, strategic decisions should be made to determine the core capabilities of a facility and outsourcing partnerships should grow from these decisions. {text:list-item} 3. 2. 1PUSH VS PULL {text:list-item} {text:list-item} {text:list-item} 3. 3. 2. 1 CRP {text:list-item} {text:list-item} {text:list-item} {text:list-item} 3. 6 KEY INTERNATIONAL COMPETITORS Fast-fashion specialty retailers with exceptional speed-to-market have outperformed department stores and less nimble specialty stores not only in their profit argins, but also in their pace of revenue growth, according to a study by The Sage Group LLC’s Apparel and Retail Group. The mayor comparable players that compete in fast fashion at international level are: Inditex -Zara Benetton H&M Gap Each of them has a vertical scope. Zara owned much of its production and most of its stores, the Gap and H&M, which were the two largest specialist apparel retailers in the world, ahead of inditex, owned most of their stores but o utsourced all production. Benetton, in contrast, has invested relatively heavily in production, but licensees ran its stores. The four competitors were also positioned differently in product space from Inditex’s chains. Inditex’s flagship brand, Zara, is relatively perceived as more fashionable than all the other three ann prices less than Benetton and Gap but higher than H&M. In these fuor competitors, Benetton and Gap place a relatively less fashionable and higher price, while Zara and H&M is more fashionable and price lower. {draw:custom-shape} {draw:custom-shape} {draw:custom-shape} {draw:custom-shape} {draw:line} {draw:line} {draw:line} {draw:frame} {draw:frame} Meanwhile, the major Italian player ‘Benetton’ marched on high street with, offering colorful designer clothing for the whole family. Their strategy resulted affirmative with noticeably contemporary window showcase in all stores with independent units. The company was successful in Britain, however, having a long standing in the market, they witnessed failure to keep up pace with the accelerated high fashion pressure by the other European competitors, which are now the known as Mango, H&M and Zara. The rise of these competitors on high street has been witness successful because of a higher demand for fast fashion. Styles showed in magazines and other advertorials are what people wish to wear. Top designers have created collection extensions, which cater people who can afford to spend their hard earned cash on triple figure. This resulted success to the affordable collection of European fashion brands A Swedish player, H&M offered readymade clothing stores – stocked with fashionable collection at reasonable costs. Its successful strategy was its own slogan ‘fashion & quality at the best price’ innovative design, reasonably priced and competent logistics. Based in Stockholm, a team of 100 fashion designers assures that nothing has been imitated from the runway platforms. They are mostly inspired from street-trends, movies, magazines and exhibitions. Impressively, the designs reach retail shelves within 2-3 weeks. H&M’s high profile designer tie-ups with Karl Lagerfield and Stella McCartney have resulted entire collections available to the mass people at lower prices. This strategy is supported by huge advertising campaigns, which easily compete with the major brand. In a world of advertisements and promotions, there is one store that has made strategy to not to spend penny on advertising, â€Å"Zara†, a wing of Europe's biggest, rapidly evolving and most triumphant fashion clothing retailers, Grupo Inditex. Other well popular stores in similar chain are Massimo Dutti, Bershka and Pull and Bear. Inditex operates business via more than two thousand stores in 56 countries. The first Zara shop was launched in 1975 at La Coruna, Galicia and at present it operates more than four hundred owned stores globally. In the previous five years they have witnessed sales up by 25 percent year on year. Zara runs its own design and production unit in La Coruna, Spain, which leads cancellation of the large out-sourcing operations, like H does in over nine hundred firms. It is modern, offering up-to-date lifestyle yet standard clothing lines for men, women and children. Zara offers reasonably priced, radical clothing, however, not of the top quality, which will last only for some seasons. As same as Zara, H can also put designs on retail shelves within three weeks. Its product assortment is cheap and small yet frequent, offering consumers huge selection that results repeated visits to their stores to find â€Å"What’s New†. Hitherto, Zara has launched over ten thousand new designs and most of these will just be attainable for few weeks. Another Spanish player, Mango is a reputed multinational brand devoted to designing, producing and selling fast fashion and accessories only for women. Its clothing line includes Suit, Casual Sport, and Mng Jeans. It might not be as huge as H or Grupo Inditex, but has played excellent particularly in the UK. No shopping malls resemble absolute with exclusive of these three brands. The pace of these companies in responding to changing consumer demands is an ideal proof to the retailing, producing and logistics skills needed in latest fashion industry. These new strategies are set up to develop aptitude to take advantage of the challenges of a competitive world market. Besides the diversification in product assortments there is one thing common in all these brands that is â€Å"intelligent logistics†. Well-organized communication between sales staff directly to the headquarters and producers lead them to match steps with high speed turnover. The fact is that buyers are becoming preference savvy and smarter in order to what they shop. Even though they always have their preferred designer, they are also acquainted that a throwaway piece of fast fashion from a retail chain store will complete their outfit choices. At so reasonably priced all of these retail perceptions play on Friday nights when people feels they have nothing to wear. Retailers are sent in a scuffle to make-out the major catwalk trends from the drawing sheets to the sales shelves as fast as possible.

The Code Of Conduct And How The Corporate Governance Is...

Abstract This paper will discuss the code of conduct in place for G.E. It will define the ways in which the code is adhered to and how the corporate governance is respected and modified. This will define the principles of a code of conduct per the module and the code of conduct for General Electric will be defined on how GE delivers its code of conduct and how it is either modified or updated continuously. General Electric Corporation has a code of conduct in place as follows: â€Å"â€Å"GE’s commitment to total, unyielding Integrity is set forth in GE’s compliance handbook, The Spirit The Letter. The policies set forth in The Spirit The Letter govern the conduct of all GE employees and are supplemented by compliance procedures and†¦show more content†¦No matter how high the stakes, no matter how great the challenge, GE will do business only by lawful and ethical means. When working with customers and Suppliers in every aspect of our business, we will not compromise our commitment to integrity. â€Å"â€Å" (General Electric Compliance Resource, 2009). General Electric has the bullet points from above on every business divisions website and the Code of Conduct for GE in consistent for all their employees. In other words, no adjusted codes based on various countries throughout the world. This also brings one to believe that employees will sign the agreement and be held accountable at all levels of the organization as well. It would seem that it does not allow special privilege as an option to opt out of participating and adhering to their code of conduct. Supposing one would want to opt out, it would be making a statement that they do not agree and therefore cannot work for General Electric. There are other codes of conduct for suppliers and vendors of multinational corporations. GE has various codes of conduct in place for these. According to Multinational Management: A Strategic Approach: â€Å"General Electric has their code of conduct policies ranked sixth in the world for the Fortune 500 companies to work for.†(www.ethisphere.com). It is involved in transportation equipment manufacturing, electrical products