Organizational behaviour defines a broad area of study that explores the impact that various persons, teams as well as organizational structures have on behaviour in an organization. The field aims at evaluating and monitoring behaviour within an organization to identify various ways through which an organization’s operations can be carried out effectively and efficiently (Bansal, 2011). Organizational behaviour equally aims at exploring varying relationships that exist among organizational employees and management. This is a critical field that determines organizational progress based on how individuals and teams interact within the organization. For any organization to achieve significant progress, it must have a deeper understanding of how various individuals and groups interact towards contributing positively to the growth of the organization. This field of study involves a wide range of important topics that include leadership, communication, team building as well as culture (Early, 1997). It is therefore evident that organizational behaviour requires a systematic approach that will enable management to have a deeper understanding of various dynamics that revolve around its organizational human resource. It is equally important for organizations to carry out consistent and comprehensive organizational behaviour analysis due to the rising trends as people from varying cultures and backgrounds are increasingly working in common organizations (Mark, 2006). This paper intends to analyze McDonald’s organizational behaviour in order to analyze how culture, motivational techniques, emotional quotient, nature of authority, communication and virtue elements influence overall behaviour within the larger organization (Royle, 2000).
Organizational behaviour analysis
McDonald’s is a renowned chain of fast food outlets that operate in more than 110 nations across the globe and it has its headquarters in United States. It mainly sells quality hamburgers and other fast food varieties on daily basis to more than 60 million people around the world. McDonald’s owns more than thirty thousand restaurants and has more than 1.71 million employees globally (Early, 1997). Due to its rapid expansion and operations in numerous countries, McDonald’s has employees that share different backgrounds and culture. This company has therefore adopted salad bowl culture that has enabled it to embrace all its employees irrespective of their culture, age, ethnicity, and language. As this company serves numerous customers that have different cultures, it has further integrated this culture to ensure that all the customers get products and services that complement their respective cultures. The company has equally embraced equality and fairness in handling all matters regarding its employees that include remuneration and promotions (Mark, 2006). It has also ensured that there is equal opportunity when employing its staff and this has seen the company employing people from diverse cultures, religions and sexual orientations. This has enabled the company to gain innovative, inventive as well as experienced employees as it adopt a non-discriminatory approach in developing its hiring and retention policies.
This approach further enabled McDonald’s to create an appealing brand that has been accepted at a global scale, and this has greatly enhanced its image to its stakeholders that include employees, customers as well as potential investors (Royle, 2000). The company also allows individual outlets in various nations to manage their employees with respect to their prevailing culture rather than imposing the culture of the home country. McDonald’s has empowered all its employees to work as a team by ensuring that no single manager or employee prevails over others (Bansal, 2011). This has enabled its employees to feel appreciated and accepted in regard to who they are, and as such, they have shown great focus and commitment in pursuit of the company’s objectives. This in return has enabled the company to thrive in numerous countries that have varying cultures as its numerous employees are increasingly becoming more satisfied and loyal (Early, 1997). It is therefore apparent that McDonald’s has gained a lot in embracing various people with respect to their culture, which has enabled it to continue attracting as well as retaining talented and skilled employees while on the other hand creating loyalty to its varying customers.
Communication at McDonald’s is paramount as customers and employees need regular and consistent flow of information and feedback. McDonald’s has employed both verbal and written forms of communication due to its complex nature and great number of employees as well as customers (Bansal, 2011). The company over time developed a well organized and systematic means of communication that has embraced emerging technology in order to lower cost of communication and reach an array of its scattered employees. In recent years, the company has engaged IBM to provide communication software that has enabled employees and management to communicate through social network and this has ensured that communication is quick and consistent. McDonald’s believes in thorough communication channels and means that ensure that all the employees are able to communicate with one another without limitations while delivering quality care to all their clients (Royle, 2000). The company has therefore adopted both formal and informal communication means in order to reach its vast team of franchisees and employees. These channels have therefore enabled the company to increase productivity as all employees and important stakeholders are able to access necessary information whenever needed.
Verbal communication has been rampant among employees working in the same restaurant as they consult one another regarding various decisions that require urgent attention regarding the welfare of the customers. This has therefore improved service delivery to customers as they do not have to wait for a long period of time to iron out a small issue that concerns their welfare. Employees have also gained great responsibility and freedom while working in the company as they are allowed to use the most convenient mode of communication that best suits a particular situation (Mark, 2006). The company has equally used formal communication means that include letters and e-mails to communicate formal information to its employees especially meetings and this has been generally accepted by all stakeholders. There is also a well organized two-way communication between employees and their supervisors, which encourages feedback between the two parties and in return all parties are satisfied with the running of the company.
McDonald’s has adopted a centralized organizational structure that upholds and stresses on recognized social rank in carrying out its operations. Centralized organizational structure usually empowers top management in McDonald’s to make major decisions regarding products, services as well as prices in all the company’s outlets (Royle, 2000). This is due to the fact that McDonald’s aims at providing similar products and services to its customers globally to ensure that its brand and image continue to expand and to impress global population. The company equally engages the top management in making major purchasing and promotional decisions as this is viewed as being both economical and easier way of making the brand popular rather than having each outlet make their own promotional decisions that might be more costly and less effective (Bansal, 2011). This approach of governing McDonald’s enhances quick adoption of common policies and procedures throughout the entire organization, it is bureaucratic and it does not always involve all major stakeholders that include employees (Early, 1997). This nature of authority equally promotes easier coordination and control of the entire business but it reduces motivation and creativity of low ranking managers and employees as their input is not incorporated in the overall decisions. Although this approach has been very successful in the overall achievements of the company, it is negatively affecting low ranking employees as they are left out in decision making.
Motivation is a key factor that has contributed to the rapid growth of McDonald’s and its ever increasing profitability. According to Mark (2006), McDonald’s has largely adopted extrinsic motivational technique, which has greatly motivated employees that in return have shown great focus and commitment to their job. The company has thus ensured that it rewards employees and managers as well as heads of franchises at the end of every month, quarter and year depending on their level of performance. The company has ensured that it awards employees who meet and surpass set targets with lucrative bonuses. McDonald’s has equally set awards for the restaurant of the quarter and of the year and this has made all its restaurants across the globe motivate their employees to give their best to ensure that they win the prize and in so doing they contribute to the overall success of the company (Royle, 2000). The company has equally introduced Ray Kroc Awards that include high perks and other gifts that are offered to the best manager across Europe. This has acted as a great incentive to the managers in the company that are now putting their efforts towards managing their outlets with great enthusiasm and professionalism to win the awards, which subsequently improves the overall fortunes of the larger company (Early, 1997). The company also offers “Champion of the Month Award” that recognizes the best performing employee that is ultimately nominated to participate in the “Employee of the Year Scheme”, which is one of the prestigious awards that attracts huge gifts in the company. While these awards have kept managers and employees motivated in pursuit of achieving and surpassing set targets within the company, it has greatly enhanced competition among the employees and the managers, and this has ultimately contributed to the rising profitability and rapid expansion of the company (Bansal, 2011).
McDonald’s has adopted effective practices in managing employees’ emotional intelligence, which has greatly benefited it as employees that have in return become loyal and committed to the company. The company has strived to ensure those employees’ emotions and personal affairs are positively managed to minimize cases of stress that reduces employees’ productivity (Early, 1997). The company has equally offered opportunities for managers and potential employees to undergo numerous training relating to emotional intelligence quotient. This has therefore equipped many managers and employees with relevant skills that enable them to effectively manage their personal emotions as well as the emotions their fellow employees and ultimately the emotions of their customers. McDonald’s sensitivity to its employees’ emotions has enabled it to implement various policies that include “Family and Friends Contract”. This contract enables employees to cover various shifts for their friends and family members that may not be able to attend duty due to their personal emotions and affairs. This has promoted emotional stability among the company’s employees’ and hence, they have contributed positively to the growth of the organization (Bansal, 2011). The company equally provides working mothers with baby care services that enable them to come to work along with their children, which enables them to be emotionally relieved hence being able to concentrate with their work. Due to the increasingly changing environment and technology, McDonald’s is prompted in providing trainings to its employees as it seeks to eliminate stress that comes with change and as such employees are always contented and pursue their work without fear (Royle, 2000).
McDonald’s has greatly incorporated virtual elements in its operations and this has enabled the company to save costs, improve sales as well as meet customers’ expectations. With rising technology, this organization has embraced video conferencing to aid it in holding meetings with managers and employees (Mark, 2006). This has therefore enabled managers and other employees to have meetings at the comfort of their restaurants without travelling to the main offices that may be situated in distant locations. This has enabled all restaurant managers and employees to save time and costs that would have been impossible if they were to travel to the main offices that are located in far distances. The company has equally implemented Fast Forward Drive-Thru that allows customers to order and be served without alighting their vehicles. This has not only increased sales but has also improved the company’s efficiency in its service delivery to ensure that customers get quality products timely (Early, 1997). McDonald’s has equally utilized online services that enable their customers to place orders at the comfort of their offices after which they can pick them once they are ready. This has greatly increased the company’s sales thereby becoming one of the world’s most admired fast food companies that deliver quality and timely orders to its customers. This in return has enabled managers and employees to enhance their skills in response to the changing working environment that requires effectiveness and efficiency to wade off competition from emerging competitors (Bansal, 2011).
It is evident that organizational behavior is a key aspect that determines how an organization conducts its affairs involving its employees and ultimately how employees interact with one another as well as the entire organization. McDonald’s fast food restaurant is a renowned multinational company that has numerous outlets and employees across the globe. Organizational behavior analysis at McDonald’s is well implemented as the company seeks to create a healthy working environment for all its employees and managers. This has enabled the company to employ extrinsic motivational technique as well as virtual elements that include video conferencing in order to improve employees commitment to their work and as such increase productivity. The company has equally embraced social networking, verbal as well as written forms of communication and this has enabled employees to interact without limitations to foster healthy relationships. The company has adopted salad bowl culture that has promoted diversity while eliminating all form of discriminations that arise due to diversity of people’s culture, religion and ethnicity across its outlets. McDonald’s has also put measures that ensure that employees’ emotions are cared for as it has implemented a system that enables friends and family members to cover shifts for one another. The company has adopted a centralized organizational structure that upholds social rank as the top management decides and implements all major decisions for the entire company. Well managed organizational behavior at McDonald’s has fostered healthy relationships among managers, employees and customers and this has ultimately improved the company profitability and growth.
Bansal, C. (2011). Organizational Behaviour, Indian Journal of Industrial Relations, 47(1): 123-140.
Early, P. (1997). Face, Harmony, and Social Structure: An Analysis of Organizational Behaviour across Cultures, New York: Oxford University Press.
Mark, S. (2006). McDonalds in Crisis: A Comparative Analysis in a National Organizational Context, Competition Forum, 4(1): 102-150.
Royle, T. (2000). Working for McDonald’s in Europe: The Unequal Struggle?, London: Routledge.
Comparison on E-Government in the USA and the UAE
Electronic government (E-Government), also commonly known as connected government, online government or digital government refers to the employment of technology, ad particularly internet-based applications by the government for the purposes of enhancing access and delivery of information and government services to its citizens, employees, businesses, other governments and other agencies. This also includes the transmission of information from these sources to the government. This model provides benefits such as building better relationships between these entities and the government, enhancing interaction and improving core business operations. The government benefits by being able to deliver information and services faster and cheaply simultaneously to a large array of interested parties (Layne and Lee 123).
- Background Information
The United Arab Emirates (UAE) has been a keen investor and adopter of Information Communication Technology (ICT), both in the public and private sectors in recent times. It has come to enjoy the benefits of the role ICT can play in economic diversification and empowerment. In 2010, the UAE was ranked 8th globally in Cisco’s broadband quality survey, ranking broadband quality and rate of penetration (Abbas).In accordance with this, the e-Government program was recognized among the seven major focus areas in the UAE government strategy of 2011-2013. This was in line with the achievement of the UAE Vision 2021, which was launched by HH Sheikh Mohammed Bin Rashid Al Maktoum, who was the reigning Vice President Prime Minister of the UAE and Ruler of Dubai. The e-Government strategy of the UAE involves availing more of the government services online. Its flagship project, adopted in the year 2011, was the enabling of payments for government services. Since then, the government has launched an official portal to act as a central point for all of the government-provided services. The services have been diversified to include provision of employment opportunities in the public sector, delivery of education certificates by the Ministry of Education, Pension fund and retirement benefits calculation and also business registration and licensing services, which are now available through a mobile application (“Smart Phone App for Business Registration and Licensing Unveiled in Dubai”).
The United States of America (USA) on the other hand has become more and more linked with the adoption of e-Government since the election of current president Barack Obama. One of his first directives since taking up office was to issue a memo to the heads of government agencies to make government “transparent, participatoryand collaborative” (“Transparency and Open Government | The White House”). In 2009, the US Congress commissioned the development of a plan to ensure that every citizen is able to access the internet, hence enabling the reception and enjoyment of government online services. This was the inception of the National Broadband Plan, which recognizes the importance of broadband as a tool for aiding the nation achieve its objectives of improving the education system, public safety, energy efficiency and overall to enhance delivery of public services. Since then, the government has embarked on a number of initiatives to increase transparency throughout the various levels of government. These have included making government data available to the public, the establishment of a National Contact Center to provide information about government services and the enhancement of these platforms to enable accessibility of these services from the convenience of a mobile phone.
One of the similarities that are evident in the e-government adoption strategy of the two countries is their recognition of the role of e-Government plays, hence their early adoption of e-Government strategies. The United States was among one of the first countries to advocate for the adoption of e-Government, through the enactment of the E-Government Act of 2002. The UAE on the other hand was among the first to implement a federal e-Government programme, known as the e–Dirham. This was implemented in 2001 to enable easier collection of fees for various government services. By 2006, UAE launched its first e-government portal(Al-Khouri 134). These respective governments therefore are aware of the potential benefits of e-Government and are seen to be taking actionable steps towards its achievement.
The governments of the UAE and the USA have also made considerable investments in ICT to enable access to e-Government services. The UAE in particular is considered to be among the highest investing governments in the adoption of ICT in the public sector. Its government has also heavily invested in promoting their e-Government services to the citizens. The country has also invested heavily in world class information and communication technology equipment and infrastructure to propel it to be among the world leaders in this field. Citizens are also encouraged to utilize the e-services provided by government and even rewarded (Mathews 22). The USA has also strived to create an enabling environment for its citizens to access its government services online. The National Broadband Plan was adopted to meet this need and ensure every citizen has access to the internet.
This has been reflected in the USA’s 78.3% internet penetration rate as of December 31st, 2011 (“North America Internet Usage Stats, Facebook and Population Statistics”).
One of the notable differences in the implementation of e-Government in the UAE and the USA is the level of marketing and awareness raised towards these ventures. Marketing is important in informing the citizens of the information and services that they can access online. UAE is a prime example of how promotion and marketing contribute to a successful e-Government system. The UAE government has employed creative community outreach programs to help spread the adoption of government e-services. This has also included empowerment programs to ensure that citizens have internet access. One such program is the partnership with technology providers to subsidize prices of computers and software (Mathews 22). In the case of the USA, such marketing has not been conducted yet and inconsistent focus on e-Government improvement has produced a difference in adoption in these two countries.
- Strengths and Weaknesses
- The United States of America
One of the major strengths of the USA’s e-government strategy is the level of engagement with citizens that is taking place currently. The USA has tapped into social media to interact on a more personal level with its citizens. This has enabled more awareness of its government initiatives to the users of social media, who are increasing on a daily basis. One of the most popular examples of government social media application is the New York Mayor’s office, which provides citizens with regular updated information across a wide range of social medial platforms.
The government has also empowered its citizens by providing access to government data, therefore increasing transparency of government initiatives. This open government initiativeis meant to promote access to government data for the benefit of the citizens. This is aimed at encouraging engagement with citizens, promoting freedom of information and encouraging innovative use of the data in entrepreneurship to promote economic growth.
Despite these strong points, the USA‘s e-Government strategy has various weaknesses. One of these is the fact that it has been difficult for different levels of government and even agencies in the same level to co-operate towards a successful e-Government strategy. Nils and Veit are quoted as saying that although recommendations are in place for the common use of various standards in the USA e-Government strategy, they cannot be imposed by law and therefore are often ignored or not adopted altogether (Mathews 13). This causes larger challenges such as insufficient e-Government funding, which effectively slows down the process.
- The United Arab Emirates
The e-Government strategy in the UAE can be said to have been a success. One of the main contributing factors to this success is the adherence to international security standards. This ensures online security for the users and gains the citizens’ trust. Dubai has employed a successful model for ensuring international standards are adhered to if a government agency wishes to provide any kind of services through the internet. These agencies are required to comply with ISO 17799 standards, to ensure the information safety of the citizens utilizing the platform. Without trusting the virtual environment, citizens cannot participate in the e-Government process and assuring them of their safety is the first step to a successful e-Government application (Hesson and Al-Mameed 227).
The UAE government has developed a model with verifiable goals to measure progress. The variables considered for measurement include focus on citizens and effectiveness factors associated with the initiatives. Individual portfolio management is employed for each of these effectiveness factors (Al-Khouri 143). This model is demonstrated below:
Figure 1: UAE e-Government Model
Security measures are incorporated to develop and maintain trust and confidence. This is especially important for the National Identity Management Infrastructure, which employs the use of smart cards to all citizens to enable secure e-Government transactions. This model has ensured simplicity for citizens and has contributed to the success of this program.
One of the limiting factors to the adoption of an e-Government model is the costs incurred. A drawback of this is that citizens may be paying for the cost but not receiving the full benefits of the service, for example, if they do not have internet access. The implementation of this without a focus on the citizens and their needs is also futile.
A successful e-Government model is a requirement for governments to be more effective in this digital age. The benefits from this strategy are numerous, but only if they are implemented with the citizens as the focus. Governments should consider the implementation of these ventures in light of the benefits they provide to citizens, rather than to governments. Though there are a few issues to be ironed out, the governments that form the focus of this comparison, namely the UAE and the USA, have taken massive positive steps towards achievement of government objectives while maximizing citizens satisfaction from the use of e-Government. If citizen-centric models are applied with a reasonable level of security, there is no limit to the benefits to be enjoyed from e-Government.
“North America Internet Usage Stats, Facebook and Population Statistics.”Web. 11 Mar. 2014.
“Smart Phone App for Business Registration and Licensing Unveiled in Dubai.” 2 June 2013. Web. 11 Mar. 2014.
Al-Khouri, Ali M. “eGovernment Strategies the Case of the United Arab Emirates (UAE).” European Journal of ePractice 17 (2012): 126-150.Print.
Hesson, Mihyar, and Hayder Al-Ameed.”Online security evaluation process for new e-services.” Business Process Management Journal 13.2 (2007): 223-246.
Layne, Karen, and Jungwoo Lee.“Developing Fully Functional E-Government: A Four Stage Model.”Government information quarterly 18.2 (2001): 122–136. Print.
Mathews, Kim. “E-Government in the United States: Steps to Advance its Success”.2010.Print.
California Minimum Wage Should be increased to 13 Dollars
Raising the minimum wage has become a heated topic in many states that think that the current federal minimum wage level is inadequate to match with the current rate of inflation in the country. California is not the only state that is pushing for minimum wage increase. Some states have already endorsed the minimum wage standards, which are slightly higher than the federal requirement. Many business executives have supported the raising of minimum wage, as it would contribute to high standards of living and low turnover in organizations. Critics to minimum wage often cite job losses and economic downfall, but raising minimum wage has been proved to create more jobs, and improved economy. The solution for minimum wage is a pivotal topic discussed by many Californians, and raising it to $13 per hour will be a major boost to citizens as well as the state’s economy.
Background of Raising Minimum Wage
The talk about raising the minimum wage in several states has been ongoing. The struggle to contain numerous occurrences of recess in the US has made the policy makers to think of ways to assist the less fortunate to cope with the rising inflation. In 1938, Congress introduced the federal minimum wage by implementing the Fair Labor Standards Act (FLSA), whereby states as well as local government entities were given the power to devise their own minimum wages, which was above the federal level (“Raising the Minimum Wage,” 2014). This act made minimum wage rates to differ among states, as some states opted to set their wage rates above the federal level. By 2012, less than 5% of employees who were paid hourly in the US received the federal minimum wage.
California has the largest economy compared to the other states that constitute the US, with agriculture as its largest industry. However, employers are reluctant to increase the minimum wage, as they target huge profits from real estates and trade. A comparison of the distribution of wage in California after an approval by the State Assembly’s Labor and Employment Commission to raise minimum wage in 1988 illustrated that only 5% of employees benefited from the rise (Card, 2015). In 2013, Jerry Brown, California Governor, signed into law Assembly Bill 10 (AB10) to raise California’s minimum wage from $8 to $9 by July 2014, and later to $10 by January 2016 (Allegretto, Reich & West, 2014). However, some policy makers criticized the bill by claiming that the increase was insufficient, particularly to the lowest-paid workers in California. They supported an increase of between $10 and $15, which would represent above the state’s median wage
In 2014, the federal government maintained that non-tipped employees should receive a minimum wage of $7.25 per hour while tipped employees to receive $2.13 per hour (Shilling, 2014). This increase has seen majority of states experiencing a decline in unemployment in the subsequent year. Increase in minimum wage has made employers to make harsh decision in order to maintain production costs. Some have opted to stop hiring new employees while others have reduced working hours. This practice has favored the already employed people while the unemployed continue to remain outside the job market. The less educated have suffered immensely from the consequences of raising minimum wage, as the chances of being employed become rare.
Contrary to the critic that raising minimum wage in states could lead to job losses, may states have experienced boost in demand, increased productivity among employees, as well as reduction in employees turnover. Most critics of raising minimum wage are large companies that want to maintain their profit earnings to a certain level at the expense of their workers. Several states have gone beyond the federal government’s minimum wage requirement while activists in some states have collected signatures to enable them vote for an increase in the minimum wage in the coming elections. The rise in government-mandated wage has not been an abrupt practice, but an ongoing process that incorporates grassroots organizing, as well as changing public perceptions about the poor (Dreier, 2014). Raising the minimum wage has assisted workers who have been hit by the effects of recession to have something to spend.
Although the FSLA has been in operation since 1938, California did not adhere to it until 1988. However, the federal minimum wage does not rely on the rate of inflation, which made the purchasing power remain flat for many years. Minimum wage workers have a significant effect on the total family income, thus, maintaining the existing wage level is likely to affect the breadwinners and their families (Allegretto, Reich & West, 2014). The low minimum wage has made a large number of Californians remain in poverty, as they cannot afford most basic commodities. Housing has shifted to the roof as real estate business became lucrative to individual business owners, as well as corporate firms making the low-level residents encounter difficulties in acquiring rental houses, or land for development.
The minimum wage was meant to assist the young individuals to enjoy life by earning better pay, but nowadays, even the old employees are facing the same problem, as employers are reluctant to raise wages. When the state economy is performing dismally, employers do not have the incentive to increase wages while employees who earn minimum wage have no capacity to demand an increase in wages because they fear losing their jobs to a large number of unemployed who would be eager to take their jobs with the same pay. The quality of health is influenced by individuals’ income, as attractive income ensure proper nutrition, better health, and safe homes (Krisberg, 2015). If the state government does not approve the bill to raise the minimum wage, public health will be affected by low wages.
The federal government’s minimum wage requirement has never come close to placing workers beyond the poverty line despite the rising living costs. Congress has not found any reason to increase the minimum wage on top of the federal government’s level of $7.25 per hour since 2009, which has incited activists in cities and states to push for an increase in wage level (Dreier, 2014). This has made corporate firms and foreign companies continue to get rich at the expense of poorly paid employees. The growing activism has led to several strikes by fast-food chains, such as Taco Bell and McDonalds, as workers demanded a rise of minimum wage to at least $15 an hour. Thus, raising minimum wages will minimize workers’ strike and enhance accountability in organizations.
Key Actors in Minimum Wage
In California, the issue of raising minimum wage incorporates numerous actors who are likely to be affected either positively or negatively. Citizens are the main actors in this endeavor, as they are affected directly by any change in minimum wages. Legislatures and local government have a role to ensure that a rise in minimum wage does not discourage investment or create unemployment. Policy makers in California have to guarantee citizens they will maintain their job, and the state will benefit from economic growth resulting from raising the minimum wage.
Businesses have an interest on issues concerning rise in minimum wage because it would mean low profits, high income tax, and low productivity. Small businesses would feel the effect because they do not enjoy economy of scale as large businesses. Interest groups, such as activists, trade unionists, social groups, and economists, are concerned with raising minimum wage to enhance individual and community welfare. Such groups are advocating for an increase in minimum wages to cushion the poor people from the rising inflation. A higher minimum wage benefits union workers by minimizing competition from lower-skilled employees. For instance, increasing minimum wage to $13 where the union wage is $39 means that employers will surrender three hours of low-skilled employee for every hour of a union employee.
The US Department of Labor is apprehensive about an increase in minimum wage, as the low-level workers are incessantly asking for an increase of their wages to meet the rising inflation. Although the department is aware of the consequences of raising the minimum wage, it has admitted that Congress has taken long time to make any adjustment. The department supports the increase of minimum wage to enhance customer service, increase job opportunities, reduce turnover, and increase productivity.
Why Minimum Wage should be Raised
California’s minimum wage should be raised to increase per capita. When wages are increase, low-earners would have enough money to spend on basic needs such as food, housing, clothes, and transport. Such spending would enhance business growth through increased sales and create more profit to business people in the cities, as well as in the countryside. More jobs are likely to emerge through the multiplier effect. Many Americans believe that the working population should not be living in poverty.
Raising California’s minimum wage will increase social welfare and security in the state. Low-level workers will be motivated to join community groups, health insurance, and other income generating groups, which can assist in boosting their lifestyles. Higher wages will enable low-level workers to save for their retirement, as well as medical expenses.
Increasing minimum wage in California will assist those in the poverty zone to rise to a new lifestyle. Increasing the minimum wage may hurt the low-wage workers, but it will substitute such effect by increasing the demand for them. When individuals and firms opt to increase minimum wage of their employees, they contribute towards changing their lifestyles. In addition, raising minimum wages reduces the gap between workers earning high wages and workers who earn low wages, thus, minimizing income inequality. Most companies are earning exorbitant revenues, as they rely on the federal level requirement for minimum wage. Thus, increasing minimum wage will balance their earnings with making their employees’ lives better.
Why Minimum Wage should not be Raised
Much of the discussion concerning the increase in minimum wage revolves around the possibility of job losses. Small business owners are fervently opposing raising the minimum wage because they would be coerced to cut back on working hours or lay off employees to sustain their labor costs. Such businesses encounter a harsh competitive market, which often drive their profits to the bottom level to remain in operation (“Raising the Minimum Wage,” 2014). Raising minimum wage will have a negative effect on small businesses that do not employ many people, as their economy of scale, which can absorb the added costs, does not apply to their operations. They believe that jobs are likely to be lost while their productivity will also decline due to inadequate workers.
Raising minimum wage to $13 in California will create monopoly, as few companies will remain in the market, thus increasing the demand of some products and services. Monopoly only benefits few individuals at the expense of the masses. An increase in the minimum wage will lead to inflation in California, as consumers will have more to spend while business owners will utilize the opportunity to increase prices due to high demand of commodities.
California residents are likely to become jobless if the proposal to increase the minimum wage up to $13 is accepted by the state government. This is because small firms will incur high production costs and opt to exit the market, leaving many people without jobs. The National Federation of Independent Business (NFIB) has already projected a decline in California’s economy by $5.7 billion by the end of 2023 if the minimum wage would be raised to $10 by 2016 (“Raising the Minimum Wage,” 2014). Minimum wage earners who are employed by large corporate firms are also likely to be affected; as such, corporate firms encounter pressure from their shareholders to minimize their production costs.
The rising wage inequality in California has led to inequality in family incomes for the last few decades, despite the existence of federal minimum wage policy. Low minimum wages usually become problematic because they are set too far below the state’s median wage, thus, California should stop adhering to the federal minimum wage, as it does not correspond to the cost of living. California government should call the stakeholders who are concerned with raising the minimum wage in order to reach on the appropriate level where everyone will be satisfied. The best policy that the state government should adopt is the one that ties wages to inflation.
The state government is the appropriate body to carry out the policy because it has the capacity to carry out such duty without exhibiting prejudice. The state government should adhere to the principles of utilitarianism, where all that matters is to increase individuals’ happiness while minimizing their sufferings. According to Perry (2012), utilitarianism focuses on what makes an individual’s life good, and proceed to attain this goal for everyone by ensuring that they encounter minimum suffering. To the consumer, utilitarianism means getting the most without incurring much cost, assuming that the government exists to promote the greatest pleasure for all citizens.
The government should implement measures that would limit radical increase of pricing of various commodities. In addition, it should create adequate resources for food production to maintain a reasonable price of food where many people, particularly from the middle and lower-levels, can afford. The number of people receiving minimum wage is reducing gradually, thus, implementing food subsidies will help the low-level workers to afford good lifestyle. In order to relieve poor people from high rents, the government should secure more land to construct houses that would be affordable to the low-level residents.
Pros of the Policy Recommendation
Every policy has its benefits and limitations. Raising the minimum wage to match the inflation will assist in fighting poverty, as low-level workers will have enough money to pay for their basic needs, in addition to achieving high levels of education. Higher wages not only benefit individual workers, but also the entire economy through increased consumer spending. The minimum wage forms the base under which other wages are calculated; hence, raising the minimum wage will increase overall spending and, consequently, expand the state economy.
When the wages of low-level workers are raised, they are given the capacity to access commodities with relative ease. Higher minimum wages will enable low-level individuals to access better housing, access to better health facilities, road networks, and other public amenities. Allowing low-level workers to access basic amenities enhances their independence and minimizes their dependence from the government, or other charitable organizations.
Most poor people in California live in settlements where security is not guaranteed. Joining social welfare groups such as Social Security, health insurance, or even community services, is quite difficult to them, as they do not have the means to sustain them. Thus, raising minimum wage would enable low-level workers to enjoy welfare services, in addition to settling in neighborhoods where they are assured of their security.
Cons of the Policy Recommendation
The push for the increase in minimum wage to match with the current rate of inflation is likely to affect the state economy, as the unexpected inflation will only benefit large companies that respond through raising prices without raising wages until the government’s action. The government may opt to allocate its resources depending on the level of purchases, thus, resulting to unequal provision of resources.
California economy is likely to experience a slump in the long run due to uncertainty that occurs during inflation. The state has long-term plans, where tax and revenue collections are anticipated depending on the current trend. Thus, commitment to a certain level of revenue income can be frustrated by unexpected inflation, which results to low spending among the consumers. Besides, investments are likely to fall due to uncertainty, which consequently results to low tax revenue from businesses.
Inflation that results from an increase in minimum wage is harmful to small businesses. Small businesses cannot cushion themselves from uncertainties brought by inflation. This leaves only the large corporations that are owned by the affluent, to compete in the commodity and service market. Large firms are capable of taking risk, as they are protected by economy of scale.
The solution for minimum wage has become a fundamental topic to be discussed by the Californian government, as increasing the minimum wage to $13 per hour will enhance the lives of California residents, as well as the state’s economy. Although California can boast of having the largest economy among all the states in the US, its current minimum wage level has been blamed for exacerbating poverty. Increasing wages is the only way that the state government can accommodate the rising inflation, as the low-level workers will be affected when the government opts to stick to the current level of wages. The best policy that California government can adopt should focus on matching minimum wage with the rate of inflation, and enhance the capacity for food production to cushion poor people from the rapid rise in food prices. Involving all stakeholders in deciding the appropriate level of minimum wage is critical for a utilitarian state.
Allegretto, S. A., Reich, M., & West, R. (2014). Ten Dollars or Thirteen Dollars? Comparing the Effects of State Minimum Wage Increases in California. Institute for Research on Labor and Employment University of California, Berkeley, Policy Brief. Retrieved on 15 May 2015 from http://www.irle.berkeley.edu/cwed/briefs/2014-02.pdf
Card, D. (2015). Do Minimum Wages Reduce Employment? A Case Study of California, 1987-89. Industrial & Labor Relations Review, 46(1), 1-17. Retrieved on 15 May 2015 from http://ilr.sagepub.com/content/46/1/38.full.pdf+html
Dreier, P. (2014). The Battle over the Minimum Wage, City by City. New Labor Forum (Sage Publications Inc.), 23(3), 85-88. doi: 10.1177/1095796014542615
Krisberg, K. (2015). Raising minimum wage good for public health, not just wallets: Advocates call for federal increase. The Nation’s Health, American Public Health Association. Retrieved on 15 May 2015 from http://thenationshealth.aphapublications.org/content/45/2/1.1.full
Perry, J. (2014). God, the good, and utilitarianism: Perspectives on Peter Singer. New York, NY: Cambridge University Press.
Raising the Minimum Wage: The Effects on Employment, Businesses and Consumers (2014). American Legislative Exchange Council, the State Factor. Retrieved on 15 May 2015 from http://www.alec.org/wp-content/uploads/Raising_Minimum_wage.pdf
Shilling, D. (2015). Complete guide to human resources and the law. New York: Wolters Kluwer.
Fundraising in Nonprofit Organizations
Success in Fundraising
Organizations adopt various ways of raising funds with some paying attention to high dollar corporate fundraisings while others seek grants from foundations. One of the most common modes of fundraising that have emerged is online and social media campaigns. Regardless of the manner in which a firm seeks to raise money, every fundraising event could either be an achievement or a failure. The definition of success in fundraising depends on some elements such as having clear goals. For any fundraising event to be successful, it must have clear objectives right from the start. The organizers understand what they want to achieve and plan a strategy that will meet these goals.
Some of the questions that guide a successful fundraising event include whether the project hopes to acquire new donors or to expand its already existing donor base or if the sought support is for necessitating a new initiative. Success in fundraising starts with detailing the apparent objectives of the event in the initial planning stages (Polivy 98). Success in fundraising results from adhering to the company’s brand. Nonprofit firms rarely use the term brand. However, it is key to separate the personal and organizational values of the enterprise when planning to fundraise. An event that embraces professional ethos yields positively. The design of the fundraising exercise has to accommodate the firm’s brand as one way of wooing supporters who could turn into long-term donors.
A fundraising effort cannot bear much fruit in the absence of the right resources. Even though the core goal of fundraising is to generate money, it is an expensive exercise. For instance, it costs staff time thus creating a high opportunity cost that could see the organization losing money. Therefore, a successful fundraising activity observes a well thought-out budget that captures costs such as staff time and other direct expenses and compares them to the revenue projections expected (Worth 227). As a result, it is easier to understand the intended return on investment before embarking on the exercise.
Community, Behavioral, Ethical, and Organizational Components of Success in Fundraising
Ethical. When nonprofit organizations make a plan to solicit for funds, they must clearly state the ways in which they wish to spend the amount raised. They must ensure they do not assign the funds to other uses other than the initially reported one or else they will lose the trust of the donor (Polivy 87). Moreover, when funders witness the honesty of the firm in utilizing the funds for the right functions, they feel encouraged to invite other prospects in supporting the organization.
Community. The identified need which prompts the business to solicit for funds must have some relevance to the community. For instance, the aim could be to promote education, health, culture, or any aspects that seek to improve the society’s wellbeing. However, community needs such as health is a broad subject, and donors want to know a particular need that the money raised will help to address. Therefore, fundraisers must narrow down their objective to more discrete needs such as extending comprehensive services to the elderly people suffering from the Alzheimer’s disease.
Organizational. Every business enterprise has a strategic plan that drives its operations. Fundraisers should thus not solicit for funds if the objective of the exercise does not align with the company’s strategic plan. It is the obligation of the board members to plan the fundraising activity based on the strategic goals of the organization (Worth 336). The team should critically evaluate the internal and external factors that could hinder the firm from realizing the short-term and long-term goals of the company and seek ways of confronting them. When it is clear that the enterprise does not have the financial abilities to sustain its operations, it can thus resolve to fundraise. The fundraising activity should never take place before the organization has apparently determined the gaps that need addressing with the resources realized (Worth 412).
Behavioral. Fundraisers must refrain from giving false reports about the beneficiaries of the solicited funds to the potential donor hoping to get support from them. For instance, if the elderly people suffering from the Alzheimer’s disease in the society do not have sufficient primary care essential in managing their conditions, fundraisers should solicit funds to source for more caregivers. They should not say, for instance, that the aging also lacks in other basics such as shelter. They should always state facts (Worth 459). If a donor contributes funds during a time when they lack the capacitation to do so, it is fair for the fundraiser to return the donation.
Barriers to Success in Fundraising
It is a grave matter for an organization to engage in fundraising without first defining the purpose of the raised funds. It is thus effective to start with proper planning to determine how the funds raised will be put into use. As a result, it is essential not only to ask for a certain amount from potential donors but to explain a definite plan of action as well as the desired outcome of the exercise (Worth 417). For instance, a fundraiser could send a message to potential donors requesting them to donate $10 to reduce the cases of malaria attacks in Africa.
The appeal is not a strong one because it has neither explained how the $10 will reduce malaria in Africa nor the expected outcome. It would have been better for the solicitor to include that the donation will buy mosquito nets for all the vulnerable populations in Africa thus increasing their resistance to the deadly disease by 70 percent. Once a potential donor discovers the positive outcome that their donation will create in the society, they become more willful to contribute.
Secondly, if the fundraiser only remembers to contact the donors when they need support, the campaign is likely to bear insignificant fruits. People will only feel charitable towards organizations they value and care about their development. Therefore, it is vital to build sound relationships with the donors by occasionally contacting them to check on their progress but not reaching out to them only when the need to solicit for funds has risen (Polivy 223). Instead, the fundraiser should involve the donors to be part of their considerable efforts where they feel they have a role to play.
It is fundamental to make the fundraising affair a joint effort where the donors feel obliged to fulfill their part. Fundraisers should thus come up with an essential communication pattern where they regularly keep in touch with the donors (Polivy 124). For instance, the nonprofit firms should occasionally send updates about their progress to the donors or surprise them with ‘thank you’ notes. They should always remember to share their success stories with the people who supported them in achieving big milestones.
Structuring the Fund-raising Department
A competent leader of any nonprofit organization understands the core objectives of the fundraising department and structures the unit to meet these goals. Firstly, the structure should be in such a way that 80 percent of the effort goes to raising funds to attend to the needs of the vulnerable populations (Worth 114). The remaining 20 percent is to help the firm by being mindful about its brand. In the first objective of the structure, employees should care more about building healthy relationships with their donors instead of getting them to give out donations (Polivy 98). Therefore, the department has to make the potential donors a part of their team and welcome them to enjoy a sense of ownership in the charitable exercises.
They should make an effort of involving their donors in every step of their progress, for instance, sharing their objectives with them. As a result, the donors feel the value of their support, and will be willing to continue because the fundraisers have already become open about their strategic use of the donations. Donors can even suggest more viable ways of meeting the needs of the vulnerable populations because they are already aware of the real situations in the ground and feel obligated to work in partnership with the nonprofit organization (Polivy 78). Much of the firm’s resources should thus go to establishing stable relationships with donors.
The next objective of the fundraising unit within a nonprofit organization is allocating some firms’ resources to building and maintaining the brand of the company (Worth 94). The public must receive a positive image of the organization through effective PR and events. Once a firm has planned and managed an event, it only succeeds in securing dollars but not donors. Such a self-funding branding strategy leaves the general public with a positive attitude of the firm. Even though the activity still realizes funds for the organization, it goes beyond the money aspect into promoting the brand.
Organizational Culture That Fosters Ethical Fundraising Professionals
Nonprofit leaders should foster a fundraising team that demonstrates respect for the donors. For instance, they can display their appreciation to the funders through sending them timely gift acknowledgments. As a result, the donors feel even more appreciated to support the firm in its future endeavors (Polivy 184). Further, the fundraising team should submit reports to foundations in promptly manner which indicates that they value their donors and will update them on the progress of the organization.
Leaders should further ensure that their fundraising staff honors the donors’ requests by not listing them on their websites if they choose to remain anonymous. However, for those who do not mind the rest of the world to know about their supportive role in the running of the nonprofit business, it is an honorable thing to list them down on the website (Worth 470). Leaders should also educate their team members on how to manage the donors’ expectations regarding the acceptable and unacceptable donations of the nonprofit entity. For instance, if the donors donate used computers, the fundraiser professional can reject the offer in a decent manner citing the company policy on donating used staff (473).
Polivy, Deborah Kaplan. Donor Cultivation and the Donor Lifecycle Map. Hoboken, NJ: John Wiley & Sons, Inc., 2014. Print. Pgs. 17-226. ISBN – 978-1-118-60377-2.
Worth, Michael J. Fundraising Principles and Politics. New York, NY: SAGE Publications, 2016. Print. Pgs. 67- 486. ISBN – 978-1-4833-1952-0.