Abstract This paper discusses the effects of the personnel cost-cutting measures employed by major airlines in the United States and their relationship to aircraft safety. The research focuses on four factors - employee layoffs, increase on employee workload, cutting employee benefits and cutting employee training. The paper presents a survey on aviation pilots at American Airlines (AA).
Table of Contents:
Abstract
Introduction
Background of the Problem
Statement of the Problem
Limitations
Delimitations
Definition of Terms
Acronyms
II Review of Related Literature Hypothesis
Introduction
Employee Benefits Cost Reduction and Wages Cutback
Employee Lay Offs
Increase in Employee Workload
Employee Training
Commercial Aircraft Safety
III Research Methodology
Introduction
Research Design
Research Model
Survey Population
Sources of Data
The Data Gathering Instrument
Pilot Study
Instrument Pretest
Distribution Method
Instrument Reliability
Instrument Validity
IV Results
Introduction
Demographics
Pilot's Awareness of Company Decision and Policies
Pilot's Awareness about AA's CostCutting Measures
Pilot's Perspective on the Effects of CostCutting Measures of AA to Commercial Aircraft Safety
V Discussion
Introduction
Pilot's Awareness of company Decision and Policies
Pilot's Awareness about AA's CostCutting Measures
Pilot's Perspective on the Effects of CostCutting Measures of AA to Commercial Aircraft Safety
Summary
VI Conclusion
VII Recommendations
Appendices
From the Paper "Since, 1998 the Government Accountability Office (2004) (GAO) of the United States had reported that majority of the leading airline industries have a difficulty of acquiring revenue and profit increase because of the growth of Low Cost Airlines (LCA) The proliferation of Low Cost Airlines has caused a strict competition in terms of domestic market share due to the relatively low prices that were offered and the relatively low cost cutting measures of LCA. Hence, it is reported by GAO (2004) that the operation costs of LCA have even increased to $1 Billion or 10% of its total operation costs. In effect of this, the research inferred that such an effect had a significant impact in terms of how passengers in general compare and view LCA to Big Airlines."
Abstract The paper analyzes Chris Murphy's article "What's Next" that focuses on current IT outsourcing practice and Lee and Margaret Covell's article "A Strategic Approach to Overhead Management" that discusses operations cost-cutting. The paper then looks at Joseph Bozada's article "Generating Shareholder Value: Much More Than CostCutting" that suggests that worker layoffs might be counter-productive and finally, the paper examines the editorial in the Measuring Business Excellence magazine that explains how improved cost-efficiency can also be achieved through an innovative use of accounting and financial processes. The paper notes that all four authors agree that companies need to look beyond such traditional cost-cutting methods as layoffs, outsourcing and downsizing.
Outline:
Introduction
Analysis: New Perspectives on Outsourcing and Operations CostCutting Analysis: Novel Approaches to CostCutting Conclusion
From the Paper "In today's challenging business environment, companies are considering cost-cutting strategies more often than just a couple of years ago. There are three well-established methods of cost cutting: downsizing, outsourcing and cutting the costs of operations (Crampton & Hodge, 2007, p.341). Managers usually turn to one or a combination of these strategies during difficult economic times and/or situations of company underperformance. However, according to many analysts, such behavior might be counterproductive and even dangerous (Bozada, 2004, p.17). While hasty layoffs and downsized operations might improve the immediate financial situation, in the longer term they might create a strategic disadvantage and even cut into future revenue gains. According to Bozada, this happens because "This approach primarily focuses on cost cutting and will, by definition, only produce limited results" (p.17). What is needed therefore is a strategic and innovative approach to the concept of cost cutting."
Abstract This is a technical work where the author discusses new, cutting edge technologies and their possible application for interplanetary communication. Specifically, the author refers to broadband communications technologies and the recent development of nanowire technology that enables the construction of microscopically thin cables, which, because of their extreme sensitivity and the great distance of interplanetary space, hold great potential for the development of new communication devices and technologies.
Table of ontents:
Introduction
Issues Facing Interplanetary Communication
Optical Communications Instead of RF Transmissions
Designing an Effective Photo-Detector
The Advances Possible with Nanowires
Conclusion
Works Cited
From the Paper "The design of the MIT photo-detector is relatively simple from an engineering standpoint (see Appendix for diagram of the photo-detector). This is especially true considering the high degree of efficiency it is capable of producing. Of course, the simplicity of the design belies the significant calibration the device requires: the nanowire must be cooled to almost absolute zero, the glass gap of the photon trap must be a very specific function of the wavelength of incoming photons, and the use of an anti-reflective coating on the surface of the device is critical. The design consists of a photon trap with a nanowire detector followed by a gap of glass, and then a mirrored surface. The nanowire is wrapped in a tight coil in order to maximize its absorption of incoming photons, and the nanowire is cooled to close to absolute zero, three degree Kelvin to be precise, which transforms the nanowire into a very small superconductor. As a superconductor, the nanowire responds in specific ways to photons that impact the nanowire allowing for detection."
Abstract The paper addresses the issue of Wal Mart's global expansion due to their domination in the domestic market. The paper then discusses Wal Mart's aggressive cost-cutting techniques and how they exploit their employees and prevent unionization in an effort to keep the customer happy through the provision of low costs. The paper believes that while Wal Mart is highly successful and ruthlessly profitable, at some point their treatment of employees and suppliers will result in adverse actions.
Outline:
Wal Mart
The Problem of Expansion
The Value Chain and Power of Wal Mart
The Unionization Issue
Alternative Solutions
Conclusion
From the Paper "Wal Mart is so successful that they must expand, and have difficult in doing so while keeping in pace with the demand for their location. At the current time there are more than 1,170 international stores within the Wal Mart global conglomerate. In 2002 their reported sales were listed at $218 billion. On the Fortune 500 Wal Mart's international business alone would stand tall at a ranking of 42, a hard-won battle which took seven years upon global expansion to pull out of the red and show a profit. (UVA 1) This recognition of the global marketplace has propelled Wal Mart to increased success. The problem lies not in the cost of expansion, but rather the time, as Wal Mart has by fare more than enough money and need only to fill demand as it rapidly arises."
Abstract This paper briefly examines this article that discusses the problems facing the technology market at present. The writer claims that the article lacks substance - that as a descriptive article it would be perfect, as an argumentative one it fails. The main part of the article discusses the debate that surrounds the progress of broadband technology in the future. The authors present the four main groups, which have a stake in the ultimate result of the broadband legislatures that will be created by the government.
From the Paper "The authors focus on Rep. W.J. "Billy" Tauzin's the Louisiana Republican, who is also the Chairman of the House Energy and Commerce Committee, and his bill that requires Telecommunications Act of 1996 to change giving Baby Bells, the telephone companies that control the regional markets more independence on issues related with broadband. Covering a wide spectrum of the debate the writers give the complete and concise interpretation of the issues that concern the various stakeholders who are involved in the paradigm. Contending that these stakeholders are basically the cable television companies, regional phone-service providers, competitive telecom firms, and wireless and satellite companies they suggest exactly why each is so involved in the outcome of the debate and legislature under question."
Abstract This paper on mobility pattern and broadband networks focuses on the fast transfer rate of information either wireless or wirelined via broadband network services and the underlying technologies which make possible the achievement of large range of bandwidth. This paper also reviews the grade of service for different mobility patterns and the services provided by this technology in accordance to geographical locations, different buildings and static users.
Abstract This paper discusses how although providing ubiquitous broadband access to all Canadian communities has been a pet project of the Canadian Radio-television and Telecommunications Commission (CRTC) since at least 2001, independent analysis does not support the viability of the prospect. The paper further discusses how the liberal government began stressing the issue in that year under the banner of making Canada the most wired nation in the world at the forefront of advances in the telecommunication industry (Grace, 2001). However, the potential for successfully achieving such a goal is limited.
Abstract This paper is a case study on Global Communications. It examines the company's plans for profitability, and whether they are appropriate and ethical. The paper discusses the plan's provision for new services and for costcutting measures to improve company profitability.
Tags: global communications, case study, profit, telecommunications, marketing, innovation, costcutting, offshore, outsourcing business ethics
Abstract This paper looks at a mental health organization which is destined to face drastically reduced or eliminated discretionary costs.
From the Paper "Identify which costs you think are likely to be discretionary or committed costs. The list of discretionary costs includes supplies, advertising and promotion, professional meetings/dues, transportation, and consulting. Committed costs consist of all the salaries, accounting/billing, and other activities/costs requisite to engage in the primary business activity. One possibility is to eliminate all discretionary costs. The discretionary costs could easily be eliminated or at the least reduced. However, this option is rarely good for morale and often increases costs in other areas unforeseen in the planning process. Yet, when faced with a required reduction in budget, these are the areas that must go first. In the following budgetary periods, strategies to reduce the fixed/operating costs, such as property/facilities overhead should be examined. "
Abstract This paper analyzes a 2003 article regarding the Bush tax cuts and argues that the cuts are in accordance with the principles of John Maynard Keynes. The paper discusses the theory that tax cuts can result in federal deficits that can lead to increased interest rates.
From the Paper "Monetary and fiscal policy are the two primary mechanisms used to stimulate and slow the economy. Monetary policy uses the availability of money-interest rates for example-to control how much money is available for investment and spending in the market. Fiscal policy on the other hand uses taxation and government spending to accelerate or decelerate the economy. While there can be many different goals for controlling capitalist economies, the overriding goal is to keep a balance between inflation-rising prices-and deflation. Inflation is sometimes described ..."
Abstract This paper considers the relatively new costing model called activity-based costing, developed in the 1980s and then refined through use by various organizations since. This approach is designed to focus attention on the causes behind indirect costs. The ABC system is directed largely at the issue of allocation, placing an emphasis on activities rather than traditional organizational departments as a way of isolating the causes of costs, or the factors that are most likely to cause or contribute to the accumulation of costs.
From the Paper "Activity Based Costing (ABC) was developed in the 1980s and has been refined through use by various organizations since. This approach is designed to focus attention on the causes behind indirect costs. The ABC system is directed largely at the issue of allocation, placing an emphasis on activities rather than traditional organizational departments as a way of isolating the causes of costs, or the factors that are most likely to cause or contribute to the accumulation of costs (Lewis, 1993, 12). The elements of this system can be applied to the working of a given business to help identify what may be driving costs upward. ABC can also be described as "a costing model that identifies the cost pools, or activity centers, in an organization and assigns costs to products and services (cost drivers) based on the number of events or transactions involved in the process of providing a product or..."
An overview of the methods of applying the "activity-based costing system" at Dakota Office Supply, in which actual costs associated with each product are established.
Abstract The paper discusses, in a detailed description, the effectiveness of an activity-based costing system or ABC and the ineffectiveness of the current costing system in use at the Dakota Office Supply (DOS) company . The paper then relates the methodology of implementing ABC at DOS and the procedures involved in its application.
Outline:
Overview
Situational analysis
Activity based costing ABC in practice at Dakota
Procedural steps of ABC
From the Paper "Before performing ABC, a baseline or a starting point is needed for business process improvement and a baseline can be expressed in some form of model. This baseline is critical for DOP because in order to establish this baseline metric the analytics just performed must be done for each individual account. If DOP performs this activity on each customer the strategic management benefits would be substantial because all the excess cost-drivers could be eliminated resulting in much wider operating margins and thus profitability without increasing costs or committing resources to gain this efficiency. Therefore, a baseline is a documentation of the organization's policies, practices, methods, measures, costs and their interrelationships at a particular location at a particular point in time (Maiga & Jacobs, 2003). Through base-lining, activity inputs and outputs across functional lines of business can be identified. ABC is the only improvement methodology that provides output or unit costs. Value added activities are those for which the customers are usually willing to pay in some fashion for the product or service. Non-value added are activities that create waste, result in a delay of some sort, and potentially adds costs to the products or services. Resources are assigned to activities so that the activities can be performed in the first place. Some of Pilgrims' resources are measured in man-hours, machine hours as well as machine maintenance and operational overhead. It is through ABC that an organization can begin to see actual dollar costs against individual activities, and find opportunities to streamline or reduce those costs, or even eliminate the entire activity thus removing the cost altogether. This is the process inherent in ABC that reduces overall expenditures of the company. "
Abstract The paper explains that activity-based costing (ABC) allows accountants to obtain a more precise view of the costs associated with specific products or services. This paper uses a case analysis to explore how ABC can help to achieve greater cost effectiveness in the healthcare industry. The paper concludes that although ABC can play an important role in reducing healthcare costs, little can be done to reduce direct costs associated with a procedure without a sacrifice of patient safety.
Outline:
Introduction
Objective of the paper
Analysis, Findings & Discussion
Suggestions, Recommendations & Conclusions
From the Paper "Activity-Based Costing (ABC) allocates the costs of production to specific products or services. It is more precise than older methods of accounting that involved adding a broad percentage of expenditures to direct and indirect costs. The definitions of direct and indirect costs varied and were often a judgement call on the part of the accountant. ABC allowed accountants to obtain a more precise view of the costs associated with specific products or services."
Discusses a costing system proposed for a computer hardware manufacturer who is also going to develop computer software to be sold along with the hardware.
Abstract This paper first recommends a costing system and then states how variances from budget would be identified. It further goes to state how the budgets for the cost centers should be set. Then it mentions some possible sources of funds for financing the project and, in conclusion, mentions how the financial ratios of the company will be affected.
Method of costing How variances can be identified
Method of budgeting
Sources of finance
Effect on ratios
Comparison with system in operation
From the Paper "There are many methods of costing that could be applied to this scenario. The current system in place is absorption costing. This is a very traditional approach, in which it is assumed that the total overhead expenses of the company are related in some way to the number of labour hours or machine hours used. In this case, all the overheads are allocated on one basis. If labour hours are used, then it the total overhead amount is divided by the total labour hours expected, and then the amount of overhead is allocated to each product based on the total amount of labour hours it uses."
