What is wrong with micromanagement: economic view

PurposeIt is well known that micromanagement — excessive control of employees — is detrimental to the employees' morale and thus, decreases their productivity. But what if the managers keep people happy — will there still be negative consequences of micromanagement? This is the problem analyzed in this paper.Design/methodology/approachTo analyze our problem, we use general — but simplified — mathematical models of how productivity depends on the working rate.FindingsWe show that even in the absence of psychological discomfort, micromanagement is still detrimental to productivity. Interestingly, the negative effect of micromanagement increases as the population becomes more diverse.Originality/valueThis is the first paper in which the purely economic consequences of micromanagement — separate from its psychological consequences — are studied in precise mathematical terms, and is the first paper that analyzes the relation between these consequences and diversity of the population.

Is Relationality Always Other-Oriented? Adam Smith, Catholic Social Teaching, and Civil Economy

Recent studies have investigated connections between Adam Smith’s economic and philosophical ideas and Catholic Social Teaching (CST). Scholars argue that their common background lies in their respective anthropologies, both endorsing a relational view of human beings. I raise one main concern regarding these analyses. I suggest that the relationality endorsed by Smith lacks a central element present in CST—the other-oriented perspective which is the intentional concern for promoting the good of others. Some key elements of CST, such as love, gift, gratuitousness, and fraternity, find a very different space in Smith’s social view and very little space in his economic view. Moreover, I show how CST relationality is more in accordance with a civil economy view of the market as a place of fraternity and mutual assistance.

A kozmetikai piac és a fogyasztói döntéshozatal bemutatása ökonómiai megközelítésben = Introduction of the cosmetics market and consumer decision making from an economic view

Tanulmányunkban bemutattuk a kozmetikai piacra jellemző fogyasztói döntéshozatalt mikro- és makroökonómiai szempontból, illetve a kozmetikai piacok főbb jellemzőit, a globális, nemzetközi kozmetikai piacokat, illetve a hazai kozmetikai termékeladást, a kozmetikumok vásárlására ható tényezők, trendek hatását a kozmetikumok vásárlására. A fogyasztói döntéshozatal közgazdasági értelemben a haszonmaximalizálásra, illetőleg a kockázatminimalizálásra törekszik. A fogyasztó objektíven dönt, teljes körűen informált a kozmetikai piaccal, a kapható kozmetikai termékekkel, illetve igénybe vehető kozmetikai szolgáltatásokkal kapcsolatban, választásakor racionális és szuverén módon cselekszik, vagyis következetes döntéshozatallal választja ki a kozmetikai piacokon megtalálható jószágokat, jószágcsoportokat kombinálva fogyasztói kosarában törekedve hasznosságának maximalizálására. In this study, the micro- and macroeconomic aspects of consumer decision making in the cosmetic market, the main characteristics of cosmetic markets, the global and international cosmetic markets, the sales records of products in the domestic market, as well as the effects of the factors and trends affecting the purchase of cosmetic products were introduced. Consumer decision making in economic terms seeks profit maximization and risk minimization. Consumers make unprejudiced decisions and they are fully informed about the cosmetics market and available cosmetic products and services. Decision making is rational and is conducted independently, which meanas that consumers choose and select goods consistently, combining groups of goods in order to maximize their usefulness.

Economic sustainability benchmarking of environmental initiatives: a case of wastewater treatment plant

PurposeIt has been long debated whether the three bottom lines of sustainability (economic, environmental and social) can be achieved simultaneously or whether achieving one adversely affects the others. This paper analyses the economic sustainability of an environmental initiative, namely, effluent treatment plant (ETP), adopted by an Indian textile industry.Design/methodology/approachTwo situations have been considered for the analysis. First, pure economic view with the operating and installed capacities has been considered. Second, combined economic-environmental view using shadow prices of undesirable outputs (biological oxygen demand, chemical oxygen demand, total nitrogen, total phosphorous, etc.) has been analysed.FindingsIt has been found that when pure economic view is considered, the net present value (NPV) of the ETP with present operating capacity (10,200 kL/day) is negative, implying that it is not economically sustainable. However, if the ETP is operated with the full installed capacity (17,000 kL/day), it becomes economically sustainable except in the case of very high cost of capital (13%). Finally, when shadow prices of undesirable outputs are considered, the NPV becomes positive, bolstering the economic-environmental sustainability of ETP.Research limitations/implicationsIn future, multiple case studies should be conducted in similar organisations to extend the general applicability of the outcome of this study. This research considers the economic and environmental aspects of ETP. However, social benefits have not been considered in this research work, which can definitely be addressed in future endeavours.Practical implicationsThough very high capital investment of ETP acts as a barrier, the results of this study imply that the top management of textile and clothing organisations should look at it from the holistic economic-environmental viewpoint. The use of ETP also leads to social benefits by improving the health of local community and by reducing their hospitalisation, medical expenditure and absenteeism from school and workplace. The outcome of this research may enthuse the entrepreneurs to adopt environmental initiatives.Originality/valueThe paper provides a framework to evaluate the economic feasibility of ETP by considering the time value of money. It is demonstrated with a real case that the environmental initiatives can be economically rewarding.

CSR Trends and Future

The future CSR challenges for business firms depend on the country's economy and cultural values. Firms must improvise to implement CSR practices accordingly. Corporations in developing and underdeveloped countries need to evolve their CSR practices from mild to strong sustainable-based views. The challenge is to adopt the correct degree of tradeoffs between the three capitals (planet, people, and profit). To survive and thrive, organizations should leave the traditional economic view, which remains sensitive about the bottom line. Societies are evolving more rapidly due to technological advancements in communication and the internet. The people are more critical to how organizations are conducting their businesses. News from any part of the world becomes global instantly with a click of a button. Vigilance is high from internal and external stakeholders of the company. CSR and its practices have a crucial role in all organizational functions in this dynamic and connected world.

A comparative study between ILS and GBAS approaches: The case of Viseu airfield

Purpose: The article aims to show the viability of installing a precision-based approach system in Viseu airfield, in Portugal. This work looks to evidence to what extent the implementation of ILS (Instrument Landing System) or GBAS (Ground Based Augmentation System) in the airfield is viable, and which of the two would be the better option for this case, from a technical and economic view and as a way to increase safety levels.Design/methodology/approach: The article analyses the airfield’s evolution over time and forecasts its movements for the future, over a 10-year period, by utilising two different models: multiple linear regression and IATA traffic forecasts. The different types of airfield taxes were also reviewed and their values were estimated for the following years. The equipment’s technical aspects and individual prices were analysed to accurately determine the time needed for the airfield to recover the investment done, allied with an 80% funding European project.Findings: Approach systems are being modernized, and throughout the years more airports and airfields are starting to replace old approach systems for satellite-based new ones. When compared to ILS, GBAS offers more advantages at a technical and economic level, and even for smaller airfields with a low traffic volume, sometimes it can be technically and economically possible to have such systems implemented.Originality/value: Studies about the implementation of new radio aids are usually prepared for big airports by airport operators or ANSPs before major investment projects. However, for most small regional airports in the country, where traffic is not near as big, such studies don’t exist, and for that reason, investigating the possibility of installing such kind of equipment is very important, especially taking into consideration the safety they provide and other benefits that naturally come up with it.

Natural Interest Rate and Money Interest Rates

The long lasting period of declining interest rates raises the question, whether the latter result from a savings glut, from a money glut, or from both. Moreover, it renewed the old question how the natural interest rate should be sensibly defined, and if it could ever fall below the growth rate, thereby causing dynamic inefficiency. The present article contributes to this debate on a pure theoretical base, leaving the empirical issue for other research. In particular, I briefly discuss Böhm-Bawerk’s three causes for the existence of an interest rate in a private barter economy. I argue that the natural interest rate remains a meaningful concept even in an economy with both a public sector and money. From a welfare economic view, it is also preferable above the so-called golden rule, provided the interest rate does not fall below the growth rate. Although the natural interest rate could well get negative by excess saving in principle, this is normally prevented when durable goods like land or precious metals are available for storing private wealth. On the other hand, issuing credit money tends to push the interest rate below its natural level, even in the long run. In order to prevent this, one could either replace it by neutral helicopter money or return to a gold currency.

POTENTIAL USE OF COPPER SLAG IN MORTAR AND CONCRETE -A CRITICAL REVIEW

The construction activities are increasing day by day. Due to this the natural sand is increasing its scarcity and its price in all parts of the country. Therefore reducing the consumption of natural sand in construction is a major issue while considering the both environment and economic view. The sustainable development for construction involves the use of nonconventional, innovative materials and recycling of industrial by products in order to compensate the lack of natural resources. Copper slag is one of the industrial by-product obtained during manufacture of copper. This paper reviews the characteristics of copper slag and its effects on the engineering properties of cement, mortar and concrete.