Analysis of managerial functions of an existing company Term Paper

Analysis of managerial functions of an existing company - Term Paper Example The paper is ananalysis of planning and leading techniques that form part of Borla. Planning as a core function of management remains an inevitable recipe in success (Griffin, 2012). The automobile industry remains one of the business opportunities with great challenges. Therefore, managers must make flexible and comprehensive policies, which promote successful delivery of services. Borla’s 25 years of outstanding performance has continually allowed it to expand to different markets. Evidently, no management can effectively expand its operations without succinct management plans. Same to other institutions, the planning process at Borla is top notch. The micro and macro level spectrum takes cognisance of the current market, intended recipients and long-term objectives. Borla’s search for a perfect and accessible manufacturing space has never stopped. Since conception, the company has shifted location from one place to another. Certainly, this is not a sign of weakness, but rather thestrength to find a better location for proficient production. Founded in 1979, it did not stay in New York, NY for long. In 1984, it moved to Oxnard, CA setting camp for 25 years and later moved to Johnson City, TN in 2009. Interestingly, it did not cease operations in the former cities; nevertheless, it facilitated a continuous growth in marketing and sales not forgetting R&D departments in Oxnard. Indeed, this is a clear strategic balance of growth. A good company should not move all of its operations to the next market no matter how promising it looks. Evidently, Borla’s vision is to provide world-class products that surpass customer’s expectations. For many companies, action ends in the promises; however, Borla has given assurance from differen t perspectives. Currently, the company is expanding its markets to China and Russia. Although challenges of

The concept of angel in the house had been overturned Essay Example for Free

The concept of angel in the house had been overturned Essay Do you agree with the view that, by 1882 the concept of angel in the house had been overturned? In source F a book by Caroline Norton published in 1854, she claims that her husband George Norton was holding her children as hostages as he thought that if he had a great power over the children that he still had power over her. Nevertheless, he did not realise that she would fight and campaign to have the right to keep her children under her custody. By this time she was no longer a angel in the house as she went against her husband, she also wanted a divorce but she could no divorce him for adultery as she had taken him back so that she could see her children. In 1857 the Divorce and Matrimonial Causes Act was passed which made divorce a lot easier as it meant that divorce could happen through a court of law rather than by a Private Act of Parliament. This made divorce cheaper and a lot faster than it was before. There were also clauses in the Act, which gave women more rights to things such as her income if she was deserted by her husband and a woman was able to inherit or bequeath property the same as a single woman could. This was passed partly due to Caroline Nortons efforts and her experiences influenced the clauses, which were inserted in to the Act. This Act meant that more and more women were failing to fit into the angel in the house concept of creating a safe haven for her husband away from the harsh reality of the outside world. Even thought laws such as the Divorce and Matrimonial Causes Act were but in to place men still thought that they had power over their wives. In 1891 there was the Jackson Case, Mr Jackson had been away in New Zealand and returned to find that his wife did not want to speak to him so he locked her up until her friends campaigned for her release. After a long legal battle, it was decided that Mr Jackson had no right to lock up his wife and force her to live with him. These laws were changing womens attitudes toward how they thought they should be treated by men, they no longer were happy to stay at home and look after their house and family under the angel in the house concept. However, men did not like this change and still wanted this power over their wives. Other laws also came in to place like the Married womens Property Acts of 1870 and 1882. These again were fought for by women such as Barbara Leigh Smith and gave women more right to their own property rather than the husband getting all of their property. In 1854 Barbara Leigh Smith started to campaign for a change in the laws on womens property. She wrote articles, started petitions and set up all-woman committees. One petition that was handed in to parliament had 26,000 signatures. The first act allowed women to keep up to à ¯Ã‚ ¿Ã‚ ½200 in earnings and personal property, the second act gave women control over all money and property they brought with them in to marriage it also allowed them to continue with any trade or business they were working on before they were married, using their own money and property. This meant that women could work so could no longer follow the angel in the house concept because they no longer had to stay at home. The LNA was set up in 1869 lead by Josephine Butler to fight against the Contagious Diseases Act. This was significant because it meant that many middle- and upper-class women were campaigning to help prostitutes by wanting the repeal of the Contagious Diseases Act. This had never happened before as middle- and upper-class women thought that they were above prostitutes and that prostitutes were dirty and brought it on themselves before this campaign began. They thought that is was not right because they thought it was wrong to forcibly detain and check women for these diseases against their will. When the men that were using the prostitutes did not have to be detained and checked even thought if the men did not use them then there would not be the problem of prostitution as there would be no demand. This went against the angel in the house concept as it meant that women were out campaigning rather than staying at home doing what was thought to be acceptable for middle- and upper-class women to be doing at the time such as corresponding. Source G is a cartoon published on the front cover of the illustrated Police News in April 1891. It asks Is Marriage a Failure? and it gives the answer of As a Rule Yes. It shows illustrations depicting marriages of money, for divorce, of beatings and of obeying. This suggests that people only married for certain reasons. It also shows an illustration of a divorce court and two people walking their different ways with the other man and the other woman in the shadows suggesting that two people cannot commit to each other solely. This shows that people were no longer concerned with the angel in the house concept as women were committing adultery and getting divorces. This source however depicts this situation as been the norm even thought there were people in happy marriages that would not want a divorce. However, there was still a social stigma attached to getting a divorce. In middle- and upper-class societies, it was still not the done thing to be a divorce single woman or to commit adultery as they were meant to pure and save themselves for their husbands. So many women did not get divorces and stayed with their husbands. Also if a man did not want a divorce and it was the woman that was trying to divorce her husband she had to prove that he had committed adultery and either bigamy, rape, sodomy, bestiality, cruelty or long-term desertion as well. Where as a husband only had to prove that his wife was committing adultery. This made it harder for a wife to get a divorce if her husband did not want to divorce her so many just suffered at home and carried on living with the angel in the house concept. The Womens Property rights were withdrawn at the last minute to allow the Divorce and Matrimonial Causes Act to be passed and become law. This was because people were too afraid to present parliament with two bills trying to change the status of women would frighten the men MPs of the time. In addition, they thought that it would mean that they would vote against both of the bill thinking that too much was been done at one time too quickly. Additionally the Reform Act of 1867 did not include womens franchise. So women had to stay with their husbands else they would have no right to their property as it legally all belonged to their husbands once they had married. I would agree on the whole that by 1882 the concept of the angel in the house had been mostly overturned. Womens attitudes were changing and they wanted more and more rights. Middle- and upper-class women such as Caroline Norton and Josephine Butler were beginning campaign to get rights for themselves and others. Laws were been passed and cases won in court in favour of women. People were also starting to realise that more and more marriages were failing and people getting divorces. However, by 1882 the angel in the house concept had not been completely overturned, as there were still people that did still believe in the angel in the house concept and not all marriages were failing and getting divorced. One reason for this was that there was a social stigma attached to getting a divorce that stopped some people, additionally divorce was still an expensive and a long process.

Relationship between Inflation Rates and Employment

Relationship between Inflation Rates and Employment CHAPTER 1 Gross Domestic Product as an indicator of wealth and therefore quality of life has long been criticized (Mederly, P. and et al. 2003). Gross Domestic Product (GDP) is the value of total production of goods and services in a country over a specified period, typically a year. The gross domestic product (GDP) or gross domestic income (GDI) is a measure of a countrys overall economic output GDP can be determined in three ways, all of which should in principle give the same result. The most direct of the three is the product approach, which sums the outputs of every class of enterprise to arrive at the total. The expenditure approach works on the principle that all of the product must be bought by somebody, therefore the value of the total product must be equal to peoples total expenditures in buying things. The income approach works on the principle that the incomes of the productive factor must be equal to the value of their product, and determines GDP by finding the sum of all producer s incomes (Bureau of Economic Analysis, U.S Department of Commerce, 2007). The most common approach to measure GDP is the expenditure method: GDP= private consumption + gross investment + government spending + (exports à ¢Ã‹â€ imports) GDP = C + I + G + (X-M) (Equation 1.1) An event in 1975 that remind us the current GDP in our country where the Malaysian economy slumped into its great recession, with a GDP growth rate of only 0.8 percent, compared to 8.3 percent in 1974. This is one of the effects of increase in oil prices and then substantial price increase in 1973 were bought about mainly shortage of food and raw materials arising from bad weather and increased aggregate demand (Cheng, M.Y. and Tan,.H.B. 2002). According to the above circumstances occurred in 1975, the researcher has choosing one of variables that may relate with fluctuation of GDP which is inflation rate. Inflation means either an increase in the money supply or an increase in price levels. Generally, when we hear about inflation, we are hearing about a rise in prices compared to some benchmark. The study of the effects of inflation on economic growth continues to be an important and complex topic in economics. If inflation has real economic effects, then governments can influence economic performance through monetary policy (Risso, W.A and Carrera, E.J.S, 2009). Therefore, investigating how inflation affects economic growth pertains directly to the optimal design of monetary policy. Results from such studies are particularly important for economies. Besides the inflation, the researcher has considered total employment as one of the variable in the model since economic growth and employment are correlated between each others. The relationship between unemployment and GDP is called Okuns law. It is the association of a higher national economic output with the decrease in national unemployment. This is because in order to increase the economic output of a country, people will need to go back to work, thus lowering unemployment. In order to support the relationship exist between GDP and employment, the researcher has found out the issue supporting the theory that GDP and employment has a positive relationship between each others. According to Hassan, M.K.H. and et al. (2010), in the period of 1996 -1997, the manufacturing sector experienced a rapid growth producing the employment rate in the sector to grow at 7.7 percent per annum but later declining to negative 3.6 percent in 1998 due to the economic recession. In addition, in year 2000, the Malaysian manufacturing sector contributed 33.4% to gross domestic product (GDP), 85.2% to total export and 27.6% to total employment. 1.2 PROBLEM STATEMENT Inflation is a major source of economic instability because it weakens incentives for work and production, distorts the allocate efficiency of the market mechanism, erodes international competitiveness of the domestic industry, and reduces growth potential. According to study by Fischer and Modigliani (1980) suggested a negative and nonlinear relationship between the rate of inflation and economic growth through the new growth theory mechanism. Furthermore, inflation also damages economic growth by lowering domestic and foreign savings, reducing efficiency of resource allocation, and deteriorating the balance-of payments (Risso, W.A. and Carrera, E.J.S., 2009). According to Cheng, M.Y. and Tan, H.B. (2002), the economy has experienced episode of high (1973-1974, 1980-1981) and low (1985-1987) regimes of inflation, and was able to contain low and stable inflation during the high economy growth period of 1988-1996. The second problem statement that should be concerns since the employment can affect the economic growth and it is important variable to determine the quality of production for national output and next will influence the GDP of our country. For example, in the early 1990s, the unemployment rate increased for about a year following the end of the previous recession. Coming out of a recession, companies are thought to be reluctant to hire many more workers until they are convinced about the sustainability of a new economic recovery while people who had left the labor force during the recession return to seek to find jobs (Seyfried, W.). Therefore, the researcher conducts this research in order to examine the correlation exists between inflation rate and employment with GDP so that we can help the country to mitigate the problem occurs by supporting the governments policies to increase the countrys GDP. In addition, this research also useful since the results of the studies can be used in policys decision for resource allocation in order to accelerate economic growth. 1.3 OBJECTIVES The objectives of the study are to: 1.3.1 Analyze the relationship between Inflation Rate and Gross Domestic Product in terms of magnitude and direction. 1.3.2 Analyze the relationship between Total Employment and Gross Domestic Product in terms of magnitude and direction. 1.4 SIGNIFICANCE OF THE STUDY The significances of this study are as follow: 1.4.1 Researcher This study will help the researcher to complete their course requirement and will be as guidelines for their field of work in the future. The researcher can gain many experiences in order to complete this research. There are lot of weaknesses may be obtained and this will encourage the researcher to provide the better research in the future. Future researcher will know and more understanding about gross domestic product when conduct this research. It will give the knowledge to the researcher to identify the correlation exist between inflation rate and employment and it always make the researcher briefing to know deeply and applied the study. 1.4.2 Organization This study might help the organization in analyzing the countrys economic condition in order to prevent and reduce the risk during the inflation and know the effects of the crisis occurs to them. This study also may give some guidance to them to protect their company and industry itself. 1.4.3 Public This study can inform and gives some knowledge to the public the relationship between economic growth, inflation rate and employment. They also can make preparation to face the increasing in inflation rate and able to survive in that situation. 1.5 SCOPE OF THE STUDY The researcher chooses to conduct the research about GDP in Malaysia from 2000 until 2010 In this study, the researcher wants to determine the correlation exist between inflation rate and employment with GDP in Malaysia. It is important because as economic planners and forecasters used the GDP per capita in monitoring economic growth trend for time series. The collection of data of GDP, inflation rate and total employment were collected from Department Of Statistics Malaysia in quarterly basis. 1.6 THEORETICAL FRAMEWORK Figure 1.1: Theoretical Framework INFLATION RATE GROSS DOMESTIC PRODUCT EMPLOYMENT RATE RATE Independent variables Dependent Variable Figure 1.1 represents the dependent variable and independent variables in this study. The function of theoretical framework has been clarified by Sekaran, U. (2003) which is a conceptual model of how one theorizes or makes logical sense of the relationship among the several factors that have been identified as important to the problem. Figure above clearly discuss the correlation between Gross Domestic Product which is variable primary to the researcher while Inflation Rate and Employment act as independent variable which is influences the dependent variable. 1.7 HYPOTHESIS In classical test of significant, two kind of hypothesis are used. They are Null Hypothesis and Alternate Hypothesis. Hypothesis is a conjectural statement that describes the relationship among variable even negative or positive. Null hypothesis which is represent by H0 symbol to show that the relationship between independent and dependent variable is not exist. However alternate hypothesis is representing by H1 symbol to show that the relationship is existing between both dependent and independent variable. According to Sakaran (2004), a hypothesis defines as a logically conjectured relationship between two or more variables expressed in the form of testable statement. Relationship a conjectured on the basis on the network of associations established in the theoretical framework formulated for the research study. There are two hypotheses that can describes the correlation exists between dependent variable and independent variables. Therefore the hypothesis that can be tested as follows: Inflation and GDP H0: there is no significant relationship between inflation and GDP. H1: there is a significant relationship between inflation and GDP. Employment and GDP H0: there is no significant relationship between employment and GDP. H1: there is a significant relationship between employment and GDP. 1.8 LIMITATION / CONSTRAINTS The limitations / constraints are: 1.8.1 Time constraint The length of time is limited since the researcher does not have much time to make detailed research. The time provided only three months and the researcher need to divide time properly to complete the research because the process of collecting data is quite difficult. 1.8.2 Cost constraint The cost involves is quite high since as a student, the researcher only depend on the loan applied. Examples of cost involve in order completing this research such as cost of printing, cost of maintaining the laptop, cost of surfing the internet and etc. 1.8.3 Data constraint Since the researcher use the secondary data, the collection of data that have been publish are so limited and the related material are not very supporting the topic of research. 1.8.4 Lack of experience The researcher is less of experience in conducting the research therefore needs to refer the researchers advisor to process the data and learning the skill that needed as a good researcher. CHAPTER 2 LITERATURE REVIEW 2.1 DEPENDENT VARIABLE 2.1.1 GROSS DOMESTIC PRODUCT (GDP) Generally, according to Chan, W.W. and Lam, J.C. (2000), gross domestic product is a common measure of the economic well-being of a society. When government officials plan for the future, they consider the various economics sectors contributed to the gross domestic products. In the other study by Ivanov, S. and Webster, C. (2007), they use the growth of real GDP per capita gr as a measure of economic growth in line with other publications in the field (see Ivanov and Webster, 2007; Lopes et al., 2002; Plosser, 1992). The function of GDP also has been explained by Kosmidou, K. (2008) where gross domestic product (GDP) is among the most commonly used macroeconomic indicators, as it is a measure of total economic activity within an economy. The gross domestic product growth (GDPGR), calculated as the annual change of the GDP, is used as a measure of the macroeconomic conditions. The significance between GDP, foreign trade and foreign direct investment has been discussed by Liu Ying and Cui Riming (2008) where the economy is highlighted by the significant performance of both its economic growth and its foreign trade and foreign direct investment. Under this background, the correlation of foreign trade, foreign direct investments and economic growth in has become an important issue for academic research. Previous studies support that foreign trade and foreign direct investment have positive impacts on gross domestic product (GDP). In the study by Malul, M. and et al. (2008), the GDPpc is used mainly to compare the standard of living in different countries. It means that the higher of cost of living in a country, the higher earning of gross domestic product of the country. According to Wong, K.Y.(2008),economic growth of an economy refers to the expansion of its production possibility set, as a result of accumulation of primary factors such as labor and capital (physical and human), or improvement of production technologies. However, because the production possibility frontier (PPF) of an economy is not observable, economic growth is usually measured in terms of the growth rate of some observable variables such as real GDP or real per capita GDP. Besides that GDP also one of the result of the countrys economic activities based on the statement of Daly and Cobb (1989), GDP expresses the content of physical flows of à ¢Ã¢â€š ¬Ã…“capital, industrial production, services, resources and agricultural productà ¢Ã¢â€š ¬?. The scientific research has been conducted by Ligon and Sadoulet (2007) using a sample of 42 countries show that GDP growth, which comes from agriculture is at least twice as effective in reducing poverty compared to GDP growth coming from nonagricultural areas. In order to know the correlation between inflation and growth, Gokal, V. and Hanif, S. (2004), stated that the tests revealed that a weak negative correlation exists between inflation and growth, while the change in output gap bears significant bearing. The causality between the two variables ran one-way from GDP growth to inflation. While, according to some consensus exists, suggesting that macroeconomic stability, specifically defined as low inflation, is positively related to economic growth. 2.2 INDEPENDENT VARIABLES 2.2.1 INFLATION RATE (INF) Inflation on economic growth continues to be an important and complex topic in economics. If inflation has real economic effects, then governments can influence economic performance through monetary policy. Therefore, investigating how inflation affects economic growth pertains directly to the optimal design of monetary policy. According to Andres and Hernando (1999), for example, reducing inflation by one percentage point when the rate is 20 percent which results in an increase in the growth rate of 0.5 percent, compared to reducing inflation by one percentage point when the inflation rate is around 5 percent, which results in a decrease in the growth rate by 1 percent. Furthermore, a study by Mallik and Chowdhury (2001), the structuralisms argue that inflation is necessary for economic growth, whereas the monetarists argue the opposite, that is, inflation is detrimental to economic growth such debate started in the 1950s, focused on developing countries, which had long suffered fro m low-growth rates with high rates of inflation and larger deficits in the balance of payments. In order of inflation, the monetarists argue that price stability promotes economic growth and protects the balance of payments. They argue that inflation is major sources of economic instability because it weakens incentives for work and production, distorts the allocative efficiency of the market mechanism, erodes international competitiveness of the domestic industry, and reduces growth potential. They also argued that inflation damages economic growth by lowering domestic and foreign savings, reducing efficiency of resource allocation, and deteriorating the balance-of-payments. To monetarists, stable prices are the starting point in the process of economic development. The policy choice of a country would be stabilization with growth, or stabilization without growth. Several papers are typical of the monetarist tradition. To argue that, according to Fischer and Modigliani (1980) suggested a negative and nonlinear relationship between the rate of inflation and economic growth through the new growth theory mechanism proposed a model where the agents decide the level of labor output, and an increase in inflation reduces labor supply, and producing a decrease in economic production. On the other hand, a study by Mundell and Tobin (1965), the structuralizes argue that inflation normally accompanies economic growth in developing countries because structural rigidities and bottlenecks in supply sectors prevent the elastic supply of some basic commodities such as food, housing, energy, and transportation. Increased income as a result of growth would expand demand for such basic commodities, and prices would rise. The structuralize position is that economic difficulties in developing countries have roots deeper than just the results of inflation. Thus, structuralizes thought that inflationary pressures and det erioration in the balance of payments inevitably are attendant matters of economic growth. In developing countries, there thus would be a trade-off relationship between economic growth and inflation and an attendant deterioration in balance of payments. If a developing country wants stabilization of prices and balance of payments, it must reduce the speed of economic growth, including a sacrifice of employment. Among scholars who support the structuralize position on a positive relationship between inflation and economic performance, predict a positive relationship between the rate of inflation and the rate of capital accumulation, which in turn implies a positive relationship to the rate of economic growth. But, DeGregorio (1996) and Fischer (1926) pointed out, since money and capital are substitutable, an increase in the rate of inflation increases capital accumulation by shifts in portfolios from money to capital and thereby stimulate a higher rate of economic growth was the first to establish a negative correlation between inflation and unemployment. According to Grier and Grier (2006), it presents evidence on the real effects of inflation and inflation uncertainty on output growth. Their main findings are as follows: Inflation uncertainty has a negative and significant effect on growth Once the effect of inflation uncertainty is accounted for, lagged inflation does not have a direct negative effect on output growth; and As predicted higher average inflation raises inflation uncertainty, and the overall net effect of average inflation on output growth. Differ with theory of Bortis, H. (2004), he argues that inflation is a macroeconomic phenomenon represented by a gap between global supply and global demand. Inflation affects the money-output relationship, as does deflation; both phenomena modify the purchasing power of money over domestic output. In this view, price indices cannot come to grips with the inflation phenomenon. While Cheng and Tan (2002) in their study inflation in Malaysia, suggested that main factors affecting Malaysian inflation were external (foreign trade, foreign direct investment and technology transfer). Malaysia has been comparatively successful in balancing strong economic growth with moderate levels of inflation in the periods preceding and following the Asian Financial crisis. Actually, empirical results related to low and medium inflation are of a mixed nature; some papers (mainly these analysing the developed economies) argues that moderate inflation negatively affects growth (e.g. Alexander, 1997, Gillm an et al. 2002; Gillman and Harris 2009; Gillman et al. 2001; Fischer 1993; De Gregorio 1992 and 1993) while other argues that moderate inflation is actually stimulating growth. On the theory side Friedman (1977) in his Nobel lecture argues that a positive relationship between the level of inflation and inflation uncertainty. Friedman points out higher inflation leading to greater uncertainty, which lowers welfare and efficiency of output growth. On the other hand, Ball (1992) formalizes Friedmans hypothesis using an asymmetric information game where public faces uncertainty regarding the type of policymaker in the office. One of the policymaker is willing to tolerate a recession to reduce inflation and the other is not. During the low inflation time, both type of policymakers will attempt and try to keep it low. But, when inflation is high, only the tough type or anti-inflation policymaker will bear the economic costs of disinflation. The argument that central banks should emphasize holding down inflation comes from the beliefs that inflation has an adverse effect on macroeconomic variables, such as output and productivity growth. According to Clark (1982), inflation causes misperception of the relative price levels and leads to inefficient investment plans and therefore affects productivity inversely. Furthermore, inflation erodes tax reductions for depreciation and raises the rental price of capital, which in turn causes a reduction in capital accumulation and therefore in labour productivity. In addition, according to Feldstein (1982) inflation disrupts investment plans by imposing a higher tax rate on corporate profits and through higher effective tax rates on corporate income and accordingly affects productivity (Gilson, 1984; Boskin et al., 1980). Finally, inflation distorts price signals and reduces the ability of economic agents to operate efficiently (Smyth, 1995). According to Chen and et al. (1991), it has documented a significant relationship between the US stock returns and real economic variables such as industrial production, real GNP, interest rates, inflation and money supply. Besides that, there are also otherwise arguments that there is no relation between inflation rate and gross domestic product in the long run. For instance, Faria and Carneiro (2001) investigate the relationship between inflation and output in the context of an economy facing persistent high inflation and they find that inflation does not affect real output in the long run, but that in the short-run inflation negatively affects output. In addition, scholars such as Sidrauski (1967) suggest that there is no relationship between inflation and economic growth, supporting the hypothesis of super neutrality of money. On the other hand, Sarel (1995) asserts that there is a nonlinear relationship between inflation and economic growth. Using 87 countries, he finds the existence of an inflation threshold of 8 percent. Above the threshold there is a negative relationship between inflation and economic growth, whereas under the threshold there is a positive but not significant relationship. The others studies in order to prove Sarels result, Judson and Orphanides (1996) divide Sarels sample of countries into three groups, and they find similar results to Sarel, finding a threshold of 10 percent. Ghosh and Phillips (1998a, b) study 145 countries in the period 1960-1990 again finding similar results. Paul et al. (1997) study 70 countries (of which 48 are developing economies) for the period 1960-1989. They find no causal relationship between inflation and economic growth in 40 percent of the countries, bidirectional causality among 20 percent of the countries, and unidirectional causality for the rest (either inflation to growth or vice versa). Lastly, Mendoza (1998) finds that inflation has had no effect on Mexicos long-run economic growth since he conducted the study of inflation in Mexico. 2.2.2 EMPLOYMENT Some of studies have been conducted to examine the relationship between gross domestic product and employment. For instance, according to Okun (1962) and Philips (1958), they found different relationship both of these. Okun found a negative correlation between unemployment and economic growth, then from both propositions it can be deduced a positive relationship between economic growth and inflation while Phillips proposed a positive relationship between inflation and unemployment implying the same type of relationship. In addition, Boltho and Glyn (1995) found elasticities of employment with respect to output growth in the order of 0.5 to 0.6 for a set of OECD countries. While according to Evangelista and Perani (1996) discovered evidence suggesting that restructuring of major economic sectors reduce the relationship between economic growth and employment. A specific research conducted by Seyfried, W., among the G7 countries (Canada was excluded), a positive and significant relationship between growth in value added and employment was found only in Germany and the US. In addition, according to Verdoon (1949) and Kaldor (1966), an increase in output growth of 1 percent leads to an increase in productivity and employment growth of half a percentage point each. It should be noted that the higher the productivity effects of growth, the more difficult it will be to keep unemployment from rising. According to Okuns Law an increase of the economic growth rate by 3 percent (above the normal rate) was expected to reduce the unemployment rate by 161 percentage point. Or, to put it the other way round: The gain of real GDP associated with a reduction in unemployment of one percentage point was estimated to be 3 percent. Several studies also have been conducted to examine the correlation exists between employment and inflation rate. One of the studies by Spithoven, A.H.G.M. (1995), by the end of the 1960s evidently there was no fixed relationship between unemployment and inflation. Empirical research revealed that the relationship was not consistent over time and varied sharply between countries. This was explained as follows: in the short run higher nominal wages attract more labour and engender a fall in the rates of unemployment. As soon as the workers recognize the wage rise to be purely nominal they abstain from work, and unemployment is restored to the pre-wage-rise level, but with a level of prices higher than before. Secondly, according to Brenner (1991), confronted with a combination of unemployment and inflation (stagflation), many governments abandoned efforts to regulate the economy by the Keynesian instruments. They declared fiscal policies ineffective and sought refuge in a mixture of m onetary measures with supply-side economics. According to Keynes (1946), the volume of employment is given by the point of intersection between the aggregate demand function and the aggregate supply function. This was naively interpreted and construed to imply that a rise in costs à ¢Ã¢â€š ¬Ã¢â‚¬Å" and with this was meant a rise in costs owing to increasing government expenditure à ¢Ã¢â€š ¬Ã¢â‚¬Å" will result in an upward shift of the supply curve and will cause greater unemployment and inflation. CHAPTER 3 RESEARCH METHODOLOGY AND DESIGN 3.1 MODEL SPECIFICATION This study is to examine the correlation exists between inflation rate and total employment with gross domestic product. It uses secondary data which is based on time series data. The collection of time series data from 1982 to 2006 and the scope is in Malaysia. The researcher applied STATA software to process the data and log-log model in this study. The model applied a log transformation, since log transformations help, at least partially, to eliminate the strong asymmetry in the distribution of inflation (Sarel, 1995) and (Ghosh and Phillips, 1998a, b). The logarithm equation is written in the Equation 3.1. GDP = ÃŽÂ ± + ÃŽÂ ²1In(INF) + ÃŽÂ ²2ln(EMP) + ÃŽÂ µ (Equation 3.1) Where, GDP = Gross Domestic Product ÃŽÂ ± = Constant ÃŽÂ ²1 = Inflation ÃŽÂ ²2 = Employment ÃŽÂ µ = Error term In above equation, it shows clearly dependent variable that has been applied in this study is gross domestic product, besides that, the researcher also used two independent variables which are quantitative variables, they are inflation rate and total employment. 3.1.1 DEPENDENT VARIABLE The dependent variable is the variable of primary interest to the researcher. The researchers goal is to understand and describe the dependent variable, and to explain its variability, or predict it (Sekaran, 2006). Dependent variable of this study is factor contributed to the gross domestic product. According to Zikmund (2000), independent variable is a criterion that predicted or explained. It show that the component contributed to improving of gross domestic product depend on the listed independent variables. 3.1.2 INDEPENDENT VARIABLES According to Zikmund (2000), independent variables that expected to influence the dependent variable. Refer to (Burn and Bush, 2000), independent variables are those variables over which the researcher has some control and wishes to manipulate. In this study, two independent variables will influence the dependent variables. They are inflation rate and employment. 3.2 DATA SET AND METHODOLOGY The collections of data in this research only gain from secondary data and based on time series data which are from 2000 to 2010. The researcher has considered annual data of real GDP, inflation rate and employment. All the data on the growth rate of real GDP, Inflation and total employment were obtained from Department of Statistics Malaysia database. GDP is considered per capita. In addition, according to Aigenger (2005) per capita real GDP is also used as an alternative measure of productivity, as some theoretical models do. Moreover, according to OECD (2001), living standards as represented by per capita income reflects productivity since the former is determined, to a significant extent, by the latter. CPI consider in weight 100 while employment in number of labor. The variables were selected based on relevant economic theories that allow for the interaction among inflation rate and total employment in addition to response to GDP. 3.3 TECHNIQUE ANALYSIS DATA In this research, the researcher has applied unit SPSS in order to determine time series data is stationary or non stationary about the correlation between inflation rate and employment with gross domestic product. The researcher examines the existence of a long-run relationship between inflation and employment with GDP using a vector error-correction model (VECM) after applying Johansens (1988, 1990, and 1995) cointegration technique. We conduct a test for weak exogeneity in order to do inference. Then, the researcher conduct stability test by using Jarque Bera test in order to test normality distribution between the variables selected. Finally, a modified version of the Granger causality test is applied in order to analyze causality between the variables. 3.4.1.1 Multiple Regression Analysis Multiple Linear regression analysis is an analysis of the relationship between one variable (dependent variable) and set of variable (independent variables). It is used by the researcher to test the hypothesis. As in all hypothesis tests, the goal is to reject the null hypothesis and accept the alternative hypothesis. This technique will identify how much of the variance in the dependent variables can be explained by independent variables. This analysis is used primarily for the purpose of prediction. The regression model can be used to predict the value of the proposed model in the study is: GDP = f (INF, EMP) GDP = ÃŽÂ ± + ÃŽÂ ²1 Inflation+ ÃŽÂ ²2 Employment + ÃŽÂ µ Where, GDP = Gross Domestic Pr Relationship between Inflation Rates and Employment Relationship between Inflation Rates and Employment CHAPTER 1 Gross Domestic Product as an indicator of wealth and therefore quality of life has long been criticized (Mederly, P. and et al. 2003). Gross Domestic Product (GDP) is the value of total production of goods and services in a country over a specified period, typically a year. The gross domestic product (GDP) or gross domestic income (GDI) is a measure of a countrys overall economic output GDP can be determined in three ways, all of which should in principle give the same result. The most direct of the three is the product approach, which sums the outputs of every class of enterprise to arrive at the total. The expenditure approach works on the principle that all of the product must be bought by somebody, therefore the value of the total product must be equal to peoples total expenditures in buying things. The income approach works on the principle that the incomes of the productive factor must be equal to the value of their product, and determines GDP by finding the sum of all producer s incomes (Bureau of Economic Analysis, U.S Department of Commerce, 2007). The most common approach to measure GDP is the expenditure method: GDP= private consumption + gross investment + government spending + (exports à ¢Ã‹â€ imports) GDP = C + I + G + (X-M) (Equation 1.1) An event in 1975 that remind us the current GDP in our country where the Malaysian economy slumped into its great recession, with a GDP growth rate of only 0.8 percent, compared to 8.3 percent in 1974. This is one of the effects of increase in oil prices and then substantial price increase in 1973 were bought about mainly shortage of food and raw materials arising from bad weather and increased aggregate demand (Cheng, M.Y. and Tan,.H.B. 2002). According to the above circumstances occurred in 1975, the researcher has choosing one of variables that may relate with fluctuation of GDP which is inflation rate. Inflation means either an increase in the money supply or an increase in price levels. Generally, when we hear about inflation, we are hearing about a rise in prices compared to some benchmark. The study of the effects of inflation on economic growth continues to be an important and complex topic in economics. If inflation has real economic effects, then governments can influence economic performance through monetary policy (Risso, W.A and Carrera, E.J.S, 2009). Therefore, investigating how inflation affects economic growth pertains directly to the optimal design of monetary policy. Results from such studies are particularly important for economies. Besides the inflation, the researcher has considered total employment as one of the variable in the model since economic growth and employment are correlated between each others. The relationship between unemployment and GDP is called Okuns law. It is the association of a higher national economic output with the decrease in national unemployment. This is because in order to increase the economic output of a country, people will need to go back to work, thus lowering unemployment. In order to support the relationship exist between GDP and employment, the researcher has found out the issue supporting the theory that GDP and employment has a positive relationship between each others. According to Hassan, M.K.H. and et al. (2010), in the period of 1996 -1997, the manufacturing sector experienced a rapid growth producing the employment rate in the sector to grow at 7.7 percent per annum but later declining to negative 3.6 percent in 1998 due to the economic recession. In addition, in year 2000, the Malaysian manufacturing sector contributed 33.4% to gross domestic product (GDP), 85.2% to total export and 27.6% to total employment. 1.2 PROBLEM STATEMENT Inflation is a major source of economic instability because it weakens incentives for work and production, distorts the allocate efficiency of the market mechanism, erodes international competitiveness of the domestic industry, and reduces growth potential. According to study by Fischer and Modigliani (1980) suggested a negative and nonlinear relationship between the rate of inflation and economic growth through the new growth theory mechanism. Furthermore, inflation also damages economic growth by lowering domestic and foreign savings, reducing efficiency of resource allocation, and deteriorating the balance-of payments (Risso, W.A. and Carrera, E.J.S., 2009). According to Cheng, M.Y. and Tan, H.B. (2002), the economy has experienced episode of high (1973-1974, 1980-1981) and low (1985-1987) regimes of inflation, and was able to contain low and stable inflation during the high economy growth period of 1988-1996. The second problem statement that should be concerns since the employment can affect the economic growth and it is important variable to determine the quality of production for national output and next will influence the GDP of our country. For example, in the early 1990s, the unemployment rate increased for about a year following the end of the previous recession. Coming out of a recession, companies are thought to be reluctant to hire many more workers until they are convinced about the sustainability of a new economic recovery while people who had left the labor force during the recession return to seek to find jobs (Seyfried, W.). Therefore, the researcher conducts this research in order to examine the correlation exists between inflation rate and employment with GDP so that we can help the country to mitigate the problem occurs by supporting the governments policies to increase the countrys GDP. In addition, this research also useful since the results of the studies can be used in policys decision for resource allocation in order to accelerate economic growth. 1.3 OBJECTIVES The objectives of the study are to: 1.3.1 Analyze the relationship between Inflation Rate and Gross Domestic Product in terms of magnitude and direction. 1.3.2 Analyze the relationship between Total Employment and Gross Domestic Product in terms of magnitude and direction. 1.4 SIGNIFICANCE OF THE STUDY The significances of this study are as follow: 1.4.1 Researcher This study will help the researcher to complete their course requirement and will be as guidelines for their field of work in the future. The researcher can gain many experiences in order to complete this research. There are lot of weaknesses may be obtained and this will encourage the researcher to provide the better research in the future. Future researcher will know and more understanding about gross domestic product when conduct this research. It will give the knowledge to the researcher to identify the correlation exist between inflation rate and employment and it always make the researcher briefing to know deeply and applied the study. 1.4.2 Organization This study might help the organization in analyzing the countrys economic condition in order to prevent and reduce the risk during the inflation and know the effects of the crisis occurs to them. This study also may give some guidance to them to protect their company and industry itself. 1.4.3 Public This study can inform and gives some knowledge to the public the relationship between economic growth, inflation rate and employment. They also can make preparation to face the increasing in inflation rate and able to survive in that situation. 1.5 SCOPE OF THE STUDY The researcher chooses to conduct the research about GDP in Malaysia from 2000 until 2010 In this study, the researcher wants to determine the correlation exist between inflation rate and employment with GDP in Malaysia. It is important because as economic planners and forecasters used the GDP per capita in monitoring economic growth trend for time series. The collection of data of GDP, inflation rate and total employment were collected from Department Of Statistics Malaysia in quarterly basis. 1.6 THEORETICAL FRAMEWORK Figure 1.1: Theoretical Framework INFLATION RATE GROSS DOMESTIC PRODUCT EMPLOYMENT RATE RATE Independent variables Dependent Variable Figure 1.1 represents the dependent variable and independent variables in this study. The function of theoretical framework has been clarified by Sekaran, U. (2003) which is a conceptual model of how one theorizes or makes logical sense of the relationship among the several factors that have been identified as important to the problem. Figure above clearly discuss the correlation between Gross Domestic Product which is variable primary to the researcher while Inflation Rate and Employment act as independent variable which is influences the dependent variable. 1.7 HYPOTHESIS In classical test of significant, two kind of hypothesis are used. They are Null Hypothesis and Alternate Hypothesis. Hypothesis is a conjectural statement that describes the relationship among variable even negative or positive. Null hypothesis which is represent by H0 symbol to show that the relationship between independent and dependent variable is not exist. However alternate hypothesis is representing by H1 symbol to show that the relationship is existing between both dependent and independent variable. According to Sakaran (2004), a hypothesis defines as a logically conjectured relationship between two or more variables expressed in the form of testable statement. Relationship a conjectured on the basis on the network of associations established in the theoretical framework formulated for the research study. There are two hypotheses that can describes the correlation exists between dependent variable and independent variables. Therefore the hypothesis that can be tested as follows: Inflation and GDP H0: there is no significant relationship between inflation and GDP. H1: there is a significant relationship between inflation and GDP. Employment and GDP H0: there is no significant relationship between employment and GDP. H1: there is a significant relationship between employment and GDP. 1.8 LIMITATION / CONSTRAINTS The limitations / constraints are: 1.8.1 Time constraint The length of time is limited since the researcher does not have much time to make detailed research. The time provided only three months and the researcher need to divide time properly to complete the research because the process of collecting data is quite difficult. 1.8.2 Cost constraint The cost involves is quite high since as a student, the researcher only depend on the loan applied. Examples of cost involve in order completing this research such as cost of printing, cost of maintaining the laptop, cost of surfing the internet and etc. 1.8.3 Data constraint Since the researcher use the secondary data, the collection of data that have been publish are so limited and the related material are not very supporting the topic of research. 1.8.4 Lack of experience The researcher is less of experience in conducting the research therefore needs to refer the researchers advisor to process the data and learning the skill that needed as a good researcher. CHAPTER 2 LITERATURE REVIEW 2.1 DEPENDENT VARIABLE 2.1.1 GROSS DOMESTIC PRODUCT (GDP) Generally, according to Chan, W.W. and Lam, J.C. (2000), gross domestic product is a common measure of the economic well-being of a society. When government officials plan for the future, they consider the various economics sectors contributed to the gross domestic products. In the other study by Ivanov, S. and Webster, C. (2007), they use the growth of real GDP per capita gr as a measure of economic growth in line with other publications in the field (see Ivanov and Webster, 2007; Lopes et al., 2002; Plosser, 1992). The function of GDP also has been explained by Kosmidou, K. (2008) where gross domestic product (GDP) is among the most commonly used macroeconomic indicators, as it is a measure of total economic activity within an economy. The gross domestic product growth (GDPGR), calculated as the annual change of the GDP, is used as a measure of the macroeconomic conditions. The significance between GDP, foreign trade and foreign direct investment has been discussed by Liu Ying and Cui Riming (2008) where the economy is highlighted by the significant performance of both its economic growth and its foreign trade and foreign direct investment. Under this background, the correlation of foreign trade, foreign direct investments and economic growth in has become an important issue for academic research. Previous studies support that foreign trade and foreign direct investment have positive impacts on gross domestic product (GDP). In the study by Malul, M. and et al. (2008), the GDPpc is used mainly to compare the standard of living in different countries. It means that the higher of cost of living in a country, the higher earning of gross domestic product of the country. According to Wong, K.Y.(2008),economic growth of an economy refers to the expansion of its production possibility set, as a result of accumulation of primary factors such as labor and capital (physical and human), or improvement of production technologies. However, because the production possibility frontier (PPF) of an economy is not observable, economic growth is usually measured in terms of the growth rate of some observable variables such as real GDP or real per capita GDP. Besides that GDP also one of the result of the countrys economic activities based on the statement of Daly and Cobb (1989), GDP expresses the content of physical flows of à ¢Ã¢â€š ¬Ã…“capital, industrial production, services, resources and agricultural productà ¢Ã¢â€š ¬?. The scientific research has been conducted by Ligon and Sadoulet (2007) using a sample of 42 countries show that GDP growth, which comes from agriculture is at least twice as effective in reducing poverty compared to GDP growth coming from nonagricultural areas. In order to know the correlation between inflation and growth, Gokal, V. and Hanif, S. (2004), stated that the tests revealed that a weak negative correlation exists between inflation and growth, while the change in output gap bears significant bearing. The causality between the two variables ran one-way from GDP growth to inflation. While, according to some consensus exists, suggesting that macroeconomic stability, specifically defined as low inflation, is positively related to economic growth. 2.2 INDEPENDENT VARIABLES 2.2.1 INFLATION RATE (INF) Inflation on economic growth continues to be an important and complex topic in economics. If inflation has real economic effects, then governments can influence economic performance through monetary policy. Therefore, investigating how inflation affects economic growth pertains directly to the optimal design of monetary policy. According to Andres and Hernando (1999), for example, reducing inflation by one percentage point when the rate is 20 percent which results in an increase in the growth rate of 0.5 percent, compared to reducing inflation by one percentage point when the inflation rate is around 5 percent, which results in a decrease in the growth rate by 1 percent. Furthermore, a study by Mallik and Chowdhury (2001), the structuralisms argue that inflation is necessary for economic growth, whereas the monetarists argue the opposite, that is, inflation is detrimental to economic growth such debate started in the 1950s, focused on developing countries, which had long suffered fro m low-growth rates with high rates of inflation and larger deficits in the balance of payments. In order of inflation, the monetarists argue that price stability promotes economic growth and protects the balance of payments. They argue that inflation is major sources of economic instability because it weakens incentives for work and production, distorts the allocative efficiency of the market mechanism, erodes international competitiveness of the domestic industry, and reduces growth potential. They also argued that inflation damages economic growth by lowering domestic and foreign savings, reducing efficiency of resource allocation, and deteriorating the balance-of-payments. To monetarists, stable prices are the starting point in the process of economic development. The policy choice of a country would be stabilization with growth, or stabilization without growth. Several papers are typical of the monetarist tradition. To argue that, according to Fischer and Modigliani (1980) suggested a negative and nonlinear relationship between the rate of inflation and economic growth through the new growth theory mechanism proposed a model where the agents decide the level of labor output, and an increase in inflation reduces labor supply, and producing a decrease in economic production. On the other hand, a study by Mundell and Tobin (1965), the structuralizes argue that inflation normally accompanies economic growth in developing countries because structural rigidities and bottlenecks in supply sectors prevent the elastic supply of some basic commodities such as food, housing, energy, and transportation. Increased income as a result of growth would expand demand for such basic commodities, and prices would rise. The structuralize position is that economic difficulties in developing countries have roots deeper than just the results of inflation. Thus, structuralizes thought that inflationary pressures and det erioration in the balance of payments inevitably are attendant matters of economic growth. In developing countries, there thus would be a trade-off relationship between economic growth and inflation and an attendant deterioration in balance of payments. If a developing country wants stabilization of prices and balance of payments, it must reduce the speed of economic growth, including a sacrifice of employment. Among scholars who support the structuralize position on a positive relationship between inflation and economic performance, predict a positive relationship between the rate of inflation and the rate of capital accumulation, which in turn implies a positive relationship to the rate of economic growth. But, DeGregorio (1996) and Fischer (1926) pointed out, since money and capital are substitutable, an increase in the rate of inflation increases capital accumulation by shifts in portfolios from money to capital and thereby stimulate a higher rate of economic growth was the first to establish a negative correlation between inflation and unemployment. According to Grier and Grier (2006), it presents evidence on the real effects of inflation and inflation uncertainty on output growth. Their main findings are as follows: Inflation uncertainty has a negative and significant effect on growth Once the effect of inflation uncertainty is accounted for, lagged inflation does not have a direct negative effect on output growth; and As predicted higher average inflation raises inflation uncertainty, and the overall net effect of average inflation on output growth. Differ with theory of Bortis, H. (2004), he argues that inflation is a macroeconomic phenomenon represented by a gap between global supply and global demand. Inflation affects the money-output relationship, as does deflation; both phenomena modify the purchasing power of money over domestic output. In this view, price indices cannot come to grips with the inflation phenomenon. While Cheng and Tan (2002) in their study inflation in Malaysia, suggested that main factors affecting Malaysian inflation were external (foreign trade, foreign direct investment and technology transfer). Malaysia has been comparatively successful in balancing strong economic growth with moderate levels of inflation in the periods preceding and following the Asian Financial crisis. Actually, empirical results related to low and medium inflation are of a mixed nature; some papers (mainly these analysing the developed economies) argues that moderate inflation negatively affects growth (e.g. Alexander, 1997, Gillm an et al. 2002; Gillman and Harris 2009; Gillman et al. 2001; Fischer 1993; De Gregorio 1992 and 1993) while other argues that moderate inflation is actually stimulating growth. On the theory side Friedman (1977) in his Nobel lecture argues that a positive relationship between the level of inflation and inflation uncertainty. Friedman points out higher inflation leading to greater uncertainty, which lowers welfare and efficiency of output growth. On the other hand, Ball (1992) formalizes Friedmans hypothesis using an asymmetric information game where public faces uncertainty regarding the type of policymaker in the office. One of the policymaker is willing to tolerate a recession to reduce inflation and the other is not. During the low inflation time, both type of policymakers will attempt and try to keep it low. But, when inflation is high, only the tough type or anti-inflation policymaker will bear the economic costs of disinflation. The argument that central banks should emphasize holding down inflation comes from the beliefs that inflation has an adverse effect on macroeconomic variables, such as output and productivity growth. According to Clark (1982), inflation causes misperception of the relative price levels and leads to inefficient investment plans and therefore affects productivity inversely. Furthermore, inflation erodes tax reductions for depreciation and raises the rental price of capital, which in turn causes a reduction in capital accumulation and therefore in labour productivity. In addition, according to Feldstein (1982) inflation disrupts investment plans by imposing a higher tax rate on corporate profits and through higher effective tax rates on corporate income and accordingly affects productivity (Gilson, 1984; Boskin et al., 1980). Finally, inflation distorts price signals and reduces the ability of economic agents to operate efficiently (Smyth, 1995). According to Chen and et al. (1991), it has documented a significant relationship between the US stock returns and real economic variables such as industrial production, real GNP, interest rates, inflation and money supply. Besides that, there are also otherwise arguments that there is no relation between inflation rate and gross domestic product in the long run. For instance, Faria and Carneiro (2001) investigate the relationship between inflation and output in the context of an economy facing persistent high inflation and they find that inflation does not affect real output in the long run, but that in the short-run inflation negatively affects output. In addition, scholars such as Sidrauski (1967) suggest that there is no relationship between inflation and economic growth, supporting the hypothesis of super neutrality of money. On the other hand, Sarel (1995) asserts that there is a nonlinear relationship between inflation and economic growth. Using 87 countries, he finds the existence of an inflation threshold of 8 percent. Above the threshold there is a negative relationship between inflation and economic growth, whereas under the threshold there is a positive but not significant relationship. The others studies in order to prove Sarels result, Judson and Orphanides (1996) divide Sarels sample of countries into three groups, and they find similar results to Sarel, finding a threshold of 10 percent. Ghosh and Phillips (1998a, b) study 145 countries in the period 1960-1990 again finding similar results. Paul et al. (1997) study 70 countries (of which 48 are developing economies) for the period 1960-1989. They find no causal relationship between inflation and economic growth in 40 percent of the countries, bidirectional causality among 20 percent of the countries, and unidirectional causality for the rest (either inflation to growth or vice versa). Lastly, Mendoza (1998) finds that inflation has had no effect on Mexicos long-run economic growth since he conducted the study of inflation in Mexico. 2.2.2 EMPLOYMENT Some of studies have been conducted to examine the relationship between gross domestic product and employment. For instance, according to Okun (1962) and Philips (1958), they found different relationship both of these. Okun found a negative correlation between unemployment and economic growth, then from both propositions it can be deduced a positive relationship between economic growth and inflation while Phillips proposed a positive relationship between inflation and unemployment implying the same type of relationship. In addition, Boltho and Glyn (1995) found elasticities of employment with respect to output growth in the order of 0.5 to 0.6 for a set of OECD countries. While according to Evangelista and Perani (1996) discovered evidence suggesting that restructuring of major economic sectors reduce the relationship between economic growth and employment. A specific research conducted by Seyfried, W., among the G7 countries (Canada was excluded), a positive and significant relationship between growth in value added and employment was found only in Germany and the US. In addition, according to Verdoon (1949) and Kaldor (1966), an increase in output growth of 1 percent leads to an increase in productivity and employment growth of half a percentage point each. It should be noted that the higher the productivity effects of growth, the more difficult it will be to keep unemployment from rising. According to Okuns Law an increase of the economic growth rate by 3 percent (above the normal rate) was expected to reduce the unemployment rate by 161 percentage point. Or, to put it the other way round: The gain of real GDP associated with a reduction in unemployment of one percentage point was estimated to be 3 percent. Several studies also have been conducted to examine the correlation exists between employment and inflation rate. One of the studies by Spithoven, A.H.G.M. (1995), by the end of the 1960s evidently there was no fixed relationship between unemployment and inflation. Empirical research revealed that the relationship was not consistent over time and varied sharply between countries. This was explained as follows: in the short run higher nominal wages attract more labour and engender a fall in the rates of unemployment. As soon as the workers recognize the wage rise to be purely nominal they abstain from work, and unemployment is restored to the pre-wage-rise level, but with a level of prices higher than before. Secondly, according to Brenner (1991), confronted with a combination of unemployment and inflation (stagflation), many governments abandoned efforts to regulate the economy by the Keynesian instruments. They declared fiscal policies ineffective and sought refuge in a mixture of m onetary measures with supply-side economics. According to Keynes (1946), the volume of employment is given by the point of intersection between the aggregate demand function and the aggregate supply function. This was naively interpreted and construed to imply that a rise in costs à ¢Ã¢â€š ¬Ã¢â‚¬Å" and with this was meant a rise in costs owing to increasing government expenditure à ¢Ã¢â€š ¬Ã¢â‚¬Å" will result in an upward shift of the supply curve and will cause greater unemployment and inflation. CHAPTER 3 RESEARCH METHODOLOGY AND DESIGN 3.1 MODEL SPECIFICATION This study is to examine the correlation exists between inflation rate and total employment with gross domestic product. It uses secondary data which is based on time series data. The collection of time series data from 1982 to 2006 and the scope is in Malaysia. The researcher applied STATA software to process the data and log-log model in this study. The model applied a log transformation, since log transformations help, at least partially, to eliminate the strong asymmetry in the distribution of inflation (Sarel, 1995) and (Ghosh and Phillips, 1998a, b). The logarithm equation is written in the Equation 3.1. GDP = ÃŽÂ ± + ÃŽÂ ²1In(INF) + ÃŽÂ ²2ln(EMP) + ÃŽÂ µ (Equation 3.1) Where, GDP = Gross Domestic Product ÃŽÂ ± = Constant ÃŽÂ ²1 = Inflation ÃŽÂ ²2 = Employment ÃŽÂ µ = Error term In above equation, it shows clearly dependent variable that has been applied in this study is gross domestic product, besides that, the researcher also used two independent variables which are quantitative variables, they are inflation rate and total employment. 3.1.1 DEPENDENT VARIABLE The dependent variable is the variable of primary interest to the researcher. The researchers goal is to understand and describe the dependent variable, and to explain its variability, or predict it (Sekaran, 2006). Dependent variable of this study is factor contributed to the gross domestic product. According to Zikmund (2000), independent variable is a criterion that predicted or explained. It show that the component contributed to improving of gross domestic product depend on the listed independent variables. 3.1.2 INDEPENDENT VARIABLES According to Zikmund (2000), independent variables that expected to influence the dependent variable. Refer to (Burn and Bush, 2000), independent variables are those variables over which the researcher has some control and wishes to manipulate. In this study, two independent variables will influence the dependent variables. They are inflation rate and employment. 3.2 DATA SET AND METHODOLOGY The collections of data in this research only gain from secondary data and based on time series data which are from 2000 to 2010. The researcher has considered annual data of real GDP, inflation rate and employment. All the data on the growth rate of real GDP, Inflation and total employment were obtained from Department of Statistics Malaysia database. GDP is considered per capita. In addition, according to Aigenger (2005) per capita real GDP is also used as an alternative measure of productivity, as some theoretical models do. Moreover, according to OECD (2001), living standards as represented by per capita income reflects productivity since the former is determined, to a significant extent, by the latter. CPI consider in weight 100 while employment in number of labor. The variables were selected based on relevant economic theories that allow for the interaction among inflation rate and total employment in addition to response to GDP. 3.3 TECHNIQUE ANALYSIS DATA In this research, the researcher has applied unit SPSS in order to determine time series data is stationary or non stationary about the correlation between inflation rate and employment with gross domestic product. The researcher examines the existence of a long-run relationship between inflation and employment with GDP using a vector error-correction model (VECM) after applying Johansens (1988, 1990, and 1995) cointegration technique. We conduct a test for weak exogeneity in order to do inference. Then, the researcher conduct stability test by using Jarque Bera test in order to test normality distribution between the variables selected. Finally, a modified version of the Granger causality test is applied in order to analyze causality between the variables. 3.4.1.1 Multiple Regression Analysis Multiple Linear regression analysis is an analysis of the relationship between one variable (dependent variable) and set of variable (independent variables). It is used by the researcher to test the hypothesis. As in all hypothesis tests, the goal is to reject the null hypothesis and accept the alternative hypothesis. This technique will identify how much of the variance in the dependent variables can be explained by independent variables. This analysis is used primarily for the purpose of prediction. The regression model can be used to predict the value of the proposed model in the study is: GDP = f (INF, EMP) GDP = ÃŽÂ ± + ÃŽÂ ²1 Inflation+ ÃŽÂ ²2 Employment + ÃŽÂ µ Where, GDP = Gross Domestic Pr

Personal Narrative- Destruction of Nature Essay -- Personal Narrative

Personal Narrative- Destruction of Nature If you ever get a chance to visit Chaco Canyon National Monument in New Mexico, you should take the time to just stand in the desert and listen. The silence in this place is physical; you can feel it surround you. This is a silence with depth and layers that are unbroken even by the wind, which moves through emptiness and speaks only in occasional sighs through the canyons. The air itself is very clear—the lack of humidity gives the cliffs and buttes sharp lines, and the colors of the earth, though muted, stand in stark relief to the blueness of the sky. Night comes gradually to this place. The height and dryness of the air allows the stars to appear before the sun has set—creating an odd contrast of light and darkness in which night is falling on one horizon while the sun reddens the other. Standing on the cliff tops you can see the sky deepen from blue to black. At night the only lights come from the stars and moon, and the faint smear of light that is the city of Alb uquerque, fifty miles away. This small blemish on the horizon haunts my memory in some ways, like an eyelash in the eye, because I know that twenty years ago the night was perfectly dark. In his book Cosmos, Carl Sagan quotes two amateur astronomers as saying, â€Å"We have loved the stars too fondly to be fearful of the night.† But my question is, if we do not fear the darkness, why do we constantly seek to keep it at bay with our streetlights and floodlamps? Emerson declares that if man would be alone, let him look at the stars. With the defeat of the night, we have also blocked out the stars. Do we fear isolation? Or is it the undeniable presence of uncontrollable forces or of decay that is present and necessary to na... ... presence, and darkness is always present. We have created an isolation that leads us to fear the world that created us. Are we hopeless? I hope not, because the intellect and creativity and ingenuity of the human mind are beautiful things. I am not saying we should chuck it all and go back to nature. The natural world is a harsh, brutal and impartial place, and we as sentient beings could not fit in. Rather, I argue that â€Å"development† and â€Å"progress† should be holistic, an improvement of the mind and soul as well as the body. Thoreau once said that in wilderness can be found the salvation of the world. It forces us to turn outside of ourselves and seek a social consciousness that extends beyond â€Å"individual rights† to human rights, and a greater reconciliation with the world around us. Perhaps then we can accept the darkness, because we will no longer fear the night.

Introduction to Duty of Care in Health and Social Care Settings

CU235P/CT235 Introduction to Duty of Care in Health and Social Care or Children's and Young People's Settings 1. Undestand the implications of Duty of Care. 1. 1 Define the term â€Å"duty of care'. Duty of care is an obligation that a person/healthcare worker acts towards others and public with watchfulness, attention and caution in a reasonable and civilized way. SU needs to know that his welfare, safety and interest are put in the centre of attention of any healthcare organisation. 1. 2 Describe how duty of care affects own work role.Every healthcare worker has a duty to act accordingly not just towards the clients but also their co-workers, other healthcare professionals and themselves. – following GCSS Code of Practise – keeping knowledge and skills up to date – not undertaking procedures outside own competences – acting in the best interest of clients – ensuring health, safety, welfare of clients – adhere to companies policies and proc edures 2. Understand support available for addressing dilemmas that may arise about duty of care. 2. 1 Describe dilemmas that may arise between the duty of care and an Individuals rights.Despite all the efforts of healthcare providers to ensure an Individual recieves the best possible care there might arise conflicts and dilemmas between healthcare worker and SU. Those conflicts may include: refusing a meal, type of activity, refusing medication or a treatment. Arising conflicts should be resolved as quickly as possible in a most satisfactory matter for both sides. The Human Rights Acts states that every person has the right to decide about own life, they can refuse the treatments and medication they recieve.It is essential to explain why they need that particular care and make them aware of pros and cons. 2. 2 Explain where to get additional support and advice about how to resolve such dilemmas. The Line Manager is the first person to turn to in any doubt. Family and friends of an Individual may be able to help. Other healthcare providers involved in care of an Individual. 3. Know how to respond to complaints. 3. 1 Describe how to respond to complaints. If an Individual is dissatisfied with provided care, he has the right to complain.Every company should have easy to access complaints procedure. When dealing with a complain on one to one basic healthcare worker should take the individual to a quiet and safe place, listen to an Individual carefully, be serious and polite, try to calm down the situation and apologise if necessary, inform an Individual about complains procedure. After the conversation with an Individual the healthcare worker should inform the manager. 3. 2 Identify the main points of agreed procedures for handling complaints.Every complain should be taken seriously and all the actions following a complain should be as quick as possible. If it's not possible to solve the problem straight after a complain, the manager should be informed. The conta ct with an Individual complaining should be polite and symphatetic. After talking the problem through the management should come up with a path of actions to solve the problem and arrange another meeting with the Individual to make sure the solution is satisfactory. All complains should be documented.

Free Essays on Loyalty

Picking your employees Employee behaviors and attitudes - even more than leadership principles and ideals - communicate most directly to customers, suppliers, and others just what the company stands for. Loyalty leaders are uniform in setting high standards for new employees, and they are remarkably uniform in the practices they have learned to attract and retain the right employees. They all create a uniquely attractive opportunity; they are all keenly involved in the recruiting process; they all take pains to ensure that employees’ first experiences on the job reflect their value to the company as well as the values of the company. Select your customers with care Being picky about customers may be a foreign concept. Bringing in the right kinds of customers can result in long-term cash flow annuities as well as in continued growth from referrals, and in enhanced satisfaction from employees whose daily jobs are improved when they can deal with appreciative customers. Loyalty leaders are extremely picky about targeting only the right customer - those for whom their firms have been engineered to deliver truly special value. By maintaining the most rigorous standards for choosing your business partners - your employees, your customers, your suppliers, and your dealers - you will be headed for the high road of loyalty leadership.... Free Essays on Loyalty Free Essays on Loyalty Picking your employees Employee behaviors and attitudes - even more than leadership principles and ideals - communicate most directly to customers, suppliers, and others just what the company stands for. Loyalty leaders are uniform in setting high standards for new employees, and they are remarkably uniform in the practices they have learned to attract and retain the right employees. They all create a uniquely attractive opportunity; they are all keenly involved in the recruiting process; they all take pains to ensure that employees’ first experiences on the job reflect their value to the company as well as the values of the company. Select your customers with care Being picky about customers may be a foreign concept. Bringing in the right kinds of customers can result in long-term cash flow annuities as well as in continued growth from referrals, and in enhanced satisfaction from employees whose daily jobs are improved when they can deal with appreciative customers. Loyalty leaders are extremely picky about targeting only the right customer - those for whom their firms have been engineered to deliver truly special value. By maintaining the most rigorous standards for choosing your business partners - your employees, your customers, your suppliers, and your dealers - you will be headed for the high road of loyalty leadership.... Free Essays on Loyalty It’s a beautiful fall afternoon, and the new folliage has made the New Hampshire air fresh and crisp. A man takes his dog’s leash of the hook on the back of the laundry room door, and with a little jingle the dog comes running out of the living room right to the man’s feet. He clips the leash, and the dog is all over him until they get outside. They make for the path that starts in his backyard, but knows no end. As they get deep into the tunnel of reds,oranges,and yellows, the path they are walking on turns around the corner of a big rock, and into to a huge black bear. The man in his red flannel shirt and North Face vest freezes and the bear bats him to the ground with his paw. At this, the 70 pound dog charges at the massive bear and again the bear raises his mighty paw to knock the dog up against a tree, and unconcious. After about an hour, the dog comes around to find his owner is laying dead in a pile of dried up leaves. The dog stands up with a bit of a li mp, and makes his way over to his owner. He nudges him behind the elbow as if he wants the dead man to pet him. When there’s no reaction from the man, he circles around once, lies up against the man’s cold side, and closes his eyes. There are three parts to the definition of loyalty, and this dog displays all of them. The first part of the definition is unconditional love. As soon as the dog knew what the man wanted to do, he was at his feet. The second part of the definition is giving up rational thought and representing whoever or whatever you’re loyal to. Not only was it obvious that the dog had no chance against the bear, but he also could have easily ran to safety. The last part of the definition, is the willingness to lay down and die for someone or something. The dog could have found his way back home, but he didn’t want the home without his life long companion. The first part of Loyalty is easy to understand; unconditional love. When people get ma rried, the...

Immaterial Labor

Immaterial Labor Introduction Immaterial labor refers to the two aspects of labor: informational content and cultural content. Informational content are the skillful changes utilized by workers in the labor processes that occurring in the industrial and tertiary sectors while cultural content refers to all the activities that cannot be categorized normally as work but determines the cultural artistic standards, fashions, tastes and consumer traditions that shape quality of service or product.Advertising We will write a custom essay sample on Immaterial Labor specifically for you for only $16.05 $11/page Learn More Mass intellectuality Empirical research and theoretical reflection of the new forms of work organization led to the radical modification of the management, composition and control of the work force that have profoundly influenced the roles of intellectuals within the society. Manual labor has undergone great transformation into intellectual labor due to the demands of capitalists and self-valorization as factors of production. Intellectual labor requires workers to be subjective to the organization as the aim of modern management strategies is to make workers’ soul be part of the organization. The subjectivity of workers to the organization is the basis of achieving quality and quantity immaterial labor in production given that work is the ability to activate and manage a team of workers productively. In addition to subjectivity of workers, activity is another attribute required for optimum productivity in an organization since the heart of productivity is collective learning and innovation of new organizational functions. Subjectivity has a disadvantage of generating conflicts between various social classes within the organization because capitalist demands absolute subjectivity, which is practically impossible in the view of the competencies of the workers. The management concept of subjectivity seems to be an autocratic management a s capitalist seeks to have a communicative process that totally involves and emanates from their subjects. Immaterial Labor Immaterial labor activities entail forms of networks and flows characterized by the precariousness, hyper-exploitation, mobility and hierarchy hence its power depends on the professional and management capacities. The challenge of immaterial labor is its interface position between production and consumption, which compels it to promote both productive and social relationship through the process of subjective though it seemed to be autocratic.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The big question revolves around the independence and ability of immaterial labor to develop organizational capacities and corporate relationship. According to the economists, industries do not create new power but takes an on-board power by adaption. On contrast, immateria l labor requires new forms of work organization to be innovated through activity. The two differing views arise; one is the neoclassical analysis that tries to redefine the market problem by introducing cooperation and intensity of labor to optimize production. The other view is the system theory that conceives organization factors such as material or immaterial, individual or collective in eliminating market constrains. The immaterial labor leads to the improvement of productive cooperation in aspects of production and reproduction of communication thus enhancing the concept of subjectivity. Integration of consumption into the immaterial cycle by Fordism and subsequent integration of communication disrupts producer-consumer relationship. Conclusion In immaterial labor, informational and cultural content are the aspects that determine productivity in an organization. Harmonization and optimization of the aspects results in the expected quality and quantity of immaterial labor in pro duction. Although immaterial labor is very productive, capitalist’s demands of absolute subjectivity is an autocratic management characterized by the hyper-exploitation and generation of conflicts between different social classes within the organization.

Pesticide Using Essays

Pesticide Using Essays Pesticide Using Essay Pesticide Using Essay except the control. In one civilization, his cells were exposed to nil ( control ) , in another civilization, the cells were merely exposed to growing factor. In the 3rd civilization, he had cells exposed to growing factor and bifenthrin, and in the last civilization, he had cells exposed to growing factor, bifenthrin, and to 2ug/ml PolicosanolPlus and Neuroprevin. During this portion of the experiment, note that he added all the constituents to the civilization at the same clip, right when the cells were seeding. Weeks found that cells with NGF did turn and widen neurites ( B ) . Cells with NGF and bifenthrin ( BiF ) did non bring forth as many neurites ( C ) , and cells with NGF, bifenthrin, PolicosanolPlus ( P ) and Neuroprevin ( NT ) , really did bring forth neurites ( D ) ! Adding PolicosanolPlus and Neuroprevin at the same clip as bifenthrin to the cells, masked bifenthrin s inhibiting ability, and in bend led to the growing of neurites. The below is a image, which illustrates this. A is the control civilization. Over a 72 hr period, Weeks found the same decision. 55 % of the cells with NGF extended neurites. Merely 3 % of the cells treated with bifenthrin and NGF had neurites. Cells with either PolicosanolPlus or Neuroprevin or a combination of the two exhibited the same consequences, that there were 46-51 % of cells that had neurite formation and extension. two demonstrates this below. It can be seen that the bulk of neurites formed when there was NGF, and the nutraceutical addendums present. The undermentioned tendency can be seen: NGF, along with PolicosanolPlus and Neuroprevin, prevent the inhibiting effects of bifenthrin. Note that during this full experiment, the cells were still feasible, it s merely the neurites that were affected by the pesticide and addendums. Dr. Weeks did another experiment, where he changed the manner he added the variables. At cell seeding, he merely added NGF and PolicosanolPlus and Neuroprevin, intending in all the civilizations he added the growing factor. He left one civilization with merely growing factor as the control, another civilization with growing factor and PolicosanolPlus, another with Neuroprevin and NGF, in the 4th one another there was both PolicosanolPlus and Neuroprevin and NGF, and in the last one, there was merely growing factor which was traveling to be used subsequently on. 24 hours after the cells seeded, Dr. Weeks added bifenthrin to all the civilizations except the control. In the last civilization, he found that NGF did non dissemble the effects of bifenthrin, and alternatively bifenthrin caused a lessening in neurite formation and extension, which was besides shown in two, when the NGF and bifenthrin were added together. After 72 hours, he saw that merely 5 % of the cells had neurites in thi s civilization. With the PolicosanolPlus + NGF, Neuroprevin + NGF, PolicosanolPlus and Neuroprevin + NGF civilizations, he found that the addendums one time once more prevented neurite devolution and abjuration. 63-67 % of the cells contained neurites after 72 hours. four exemplifies these tendencies. Many scientists now think that exposure to pesticides may really be doing many neurodegenerative diseases in worlds. Dr. Weeks paper is merely one that supports this point. Industrial exposure to pesticides has ever been a concern, but what about family exposure? There are pesticides at place that we are exposed to mundane. Yes, companies have tried to do man-made pesticides, which seem to be less toxic. However, these man-made pesticides have shown that they truly are nt less toxic, and can do neurodegenerative disease merely as the extremely toxic one, possibly at a slower gait, but that s about it. At the same item, pesticides can non be disposed of. They do hold their advantages, such as eliminating insect-borne disease. Again, here comes in the double-edged blade. What do we make? A promising solution seems to be nutraceutical addendums, which allow pesticides to be without damaging nerve cells. These addendums help protect neurites and let them to organize even if when the pesticides try to suppress their formation. In footings of the environment, bifenthrin, compared to other pesticides is non so much of a job. It stays in the dirt and does nt fade out in H2O. It does bioaccumulate in birds, which lead to many birds deceasing, but overall, there has nt been another Silent Spring yet so as of now we are ok. How long that is traveling to last? No 1 knows. It s best to get down taking action right off. Additionally bifenthrin is stable, is nt every bit toxic as other pesticides, and does nt truly ache worlds if they are exposed to it a small. That does nt intend bifenthrin should ever be used. There should be alternate agencies to pesticides, or at least addendums that counter their effects. Plants Cited Fecko, Andrew. Environmental Fate of Bifenthrin. Publication. Web. lt ; www.pw.ucr.edu/textfiles/bifentn.pdf gt ; . Gbaruko, Benedict C. Organophosphate induced chronic neurotoxicity: Health, environmental and risk exposure issues in developing states of the universe. Frican Journal of Biotechnology 8 ( 2009 ) : 5137-141. Web. lt ; www.atlas.iviji.com/AJB/PDF/pdf2009/19Oct/Gbaruko % 20et % 20al.pdf gt ; Hougard, J. M. Bifenthrin: A Useful Pyrethroid Insecticide for Treatment of Mosquito Nets. Publication. Web. lt ; www.emerald.qld.gov.au/Temp_Documents/Hougard.pdf gt ; . Neuroprevin. Advanced Labs. Web. lt ; hypertext transfer protocol: //www.innlabs.com/neuroprevin.html gt ; . Pesticide User s Guide. Web. lt ; hypertext transfer protocol: //ohioline.osu.edu/b745/b745_4.html gt ; . Pyrethroids/ Pyrethrins. Safety Source for Pest Management. Web. lt ; hypertext transfer protocol: //www.beyondpesticides.org/infoservices/pesticidefactsheets/toxic/pyrethroid.htm gt ; . Web. lt ; hypertext transfer protocol: //en.wikipedia.org/wiki/Bifenthrin gt ; . Weeks, Benjamin, and A. Nandi. Bifenthrin causes neurite abjuration in the absence of cell decease: a theoretical account for pesticide associated neurodegeneration. 2006. Web. lt ; hypertext transfer protocol: //www.ncbi.nlm.nih.gov/pubmed/16641870 gt ; . Weeks, Benjamin. PolicosanolPlus and NeuroprevinTM ameliorate pesticide-mediated suppression of neurite branch and neurite devolution. Med Sci Monit ( 2006 ) : 379-84. Hypertext transfer protocol: //cat.inist.fr/ ? aModele=afficheN A ; cpsidt=18443851. Web.

Indicator of Business assessment on Nursing home Article

Indicator of Business assessment on Nursing home - Article Example Thus, the role of nursing homes becomes one of the top most importance in today's life of the society. The elderly care industry can be split into two categories - nursing homes and residential care homes. Nursing homes are fundamentally private hospitals for elderly residents calling for high levels of care, staffed by managers and nurses with sophisticated levels of medical and care training. Residential care homes, on the other hand, are old people's homes. They provide a place to stay for elderly people who conceivably cannot do everything for themselves, yet nevertheless enjoy a degree of independence and require little hands-on care. They are staffed by qualified care takers whose level of training need not be as advanced as those working in nursing homes. Nursing homes as a business or an investment is a field which looks healthy in spite of the economic catastrophe. There are a number of reseat developments for this friendly environment for the investors. Though the extra legislation introduced through the Care Standards Act has made it binding for the potential purchasers to prepare and make a lot of commitment financially and personally on staffing and maintenance of the nursing home, any body now planning to go into this business is assured of study income and thriving business. Running a nursing home can be a rewarding business, as the returns one get from the care homes would be very significant. The majority of nursing facility services is funded by the Medicare and Medicaid programs. Nursing homes with private care patients generally provide higher quality care than facilities dependent on Medicaid patients. National Senior Citizens Law Center states that nursing homes discriminate against Medicaid patients versus private pay. The difference may be a special wing of a home, eviction of Medicaid patients and inferior food and services. One expert noted that nine out of ten attorneys give bad advice on qualifying for Medicaid. Approximately 63% of nursing-home patients of cognitively impaired. Nursing homes provide long term and sub-acute care to persons in need of 24-hour nursing services or significant supportive services. The quality of care and quality of life for residents of nursing homes have been a concern for decades. Nursing home residents are generally frail, physically and psychosocially compromised, heavily dependent upon others for basic care and sustenance, and in some cases near the end of their lives. When residents live in an environment where they are totally dependent on others, they are especially vulnerable to abuse, neglect and exploitation. Nursing home licensees must protect these vulnerable persons and are expected to provide the necessary care and services to allow each resident to achieve and maintain his or her highest possible level of function and well being. Financial status, in fact, causes inequalities in the quality of care received by an elderly person. It mainly may not be with in the same nursing home. African Americans are four times more likely than their white counterparts to reside in substandard nursing homes. But obviously if one has got money the service he gets is simply remarkable. The Silverado is an example to it; Silverado specializes in residents with severe dementia. Most assisted-living homes quarantine such patients in separate wards or ship them off to nursing homes when their

Research paper Essay Example | Topics and Well Written Essays - 2000 words

Research paper - Essay Example The term circadian traces back its roots to the Latin words circa, which means around, and dies, which means day. It refers to biological processes in plants and animals that repeat in 24-hour cycles (American Heritage Dictionary of the English Language (3rd ed.)). Indeed, the most obvious function of circadian rhythms in humans is the sleep/wake cycle, wherein adults generally tend to become sleepy between 10 PM and midnight and to awaken feeling rested between 6 AM and 8 AM. Research indicates that poor sleeping quality contributes to a myriad of illnesses such as hypertension, cardiac arrest, stroke, hyperthyroidism, and eventual fatality (Shneerson 102). Considering the detrimental effects that poor quality sleep and irregular sleeping patterns cause, it is important to know what factors contribute to the disruption of the body’s circadian rhythm. In particular, this paper would like to investigate if engaging in shifting schedules is among the factors that contribute to t he disruption of the body’s circadian rhythm. II. Review of Related Literature Circadian rhythm is just one of the many periodic cycles that the human body adheres to. Other periodic events in the human body include ultradian rhythms, women’s menstrual cycle, and circannual rhythms that are present in both males and females. Circadian rhythms are â€Å"caused by oscillators situated in the cell nuclei with a number of genes participating and creating a translational–transcriptional feedback system in which some gene products accumulate and inhibit the clock gene function, followed by a release of gene function when the gene products are removed metabolically out of the feedback cycle† (Haus & Smolensky 491). Studies show that certain social, cultural, and industrial developments have disrupted this supposedly regular body cycle. For one, the development of the light bulb has radically changed people’s sleep patterns because the artificial light tha t a light bulb emits fools the body into thinking that it is daylight and thus contributes to the phenomenon of people staying up late at night and waking up late in the morning (Moore-Ede 157). In addition, the intake of caffeine and alcohol has also affected the quality of sleep that people enjoy. Large doses of caffeine are found to increase the heart rate and stimulate the brain and behavior (Nordegren 54). On the other hand, alcohol intake briefly causes drowsiness and is thus used by some people to initiate sleep. However, tolerance to its hypnotic effect often leads to an increase in the amount being ingested until sleep-wake patterns are totally disrupted in the end (Shneerson 105). Changes in today’s lifestyle also entails that people no longer engage in â€Å"normal working hours.† Harrington defines normal working hours in such a way that the individual works during the day and rests during the night, with some time left for recreation and other activities ( 58). People who do not engage in normal working hours tend to either work at night, on with extended hours or on shifts, thus violating the regular pattern of working at day and resting at night. In particular, three generally followed shifting schedules are the night shift which starts at 2200 hours, the morning shift which begins at 0600 hours, and the afternoon shift which typically commences at 1400 hours (Harrington 59; Akerstedt 90). Akerstedt further specifies that these different shift schedules also have different effects on