CDM Regulations

Sample details Pages: 18 Words: 5349 Downloads: 7 Date added: 2017/06/26 Category Statistics Essay Did you like this example? The Effect of the Cdm Regulations on Accident Statistics within the UK The implementation of the CDM regulations under the CDM Co-ordinators. Abstract Health and safety in the construction industry has experienced considerable research over the last few decades in order to reduce the number of injuries and fatalities within the construction industry. Health and safety practices such as the HSC that introduced the CDM regulations in 1994 and the current revised regulations introduced in 2007 are perceived to provide numerous benefits in maintaining a safer industry. With approximately 7%-8% of employment within the UK involved in the construction industry and an estimated 8% of the UKs GDP it is important to do so. There is a growing importance due to the high rate of employment in the construction industry to provide a detailed set of safety regulations known as the CDM regulations that everyone involved with construction must follow. As a result of this many organisations such as the HSC, have initiated targets to ensure that the health and safety on sites improves dramatically, and to encourage the government to formulate officia l targets to reduce the number of fatalities and injuries by a certain date. Don’t waste time! Our writers will create an original "CDM Regulations | Construction Dissertations" essay for you Create order However, although the CDM regulations 1994 did have a positive effect on the health and safety in the industry there was still areas of concern within the regulations that professionals were unsure of who carried out different roles and the fact that the rate of fatalities and injuries was not decreasing significantly enough, this was the reason for the review of the CDM regulations 1994 and the implementation of the new CDM regulations 2007 which is designed to provide a clearer background into construction HS. Using a sample group methodology, and acknowledging specifically the principal contractor, this study aims to assess whether the HSC can achieve its aim of reducing the number of fatalities and injuries by 10% in the UK by 2010 and ultimately assess whether or not the CDM regulations make a significant difference to HS statistics. This will be reviewed by looking at the implementation techniques used by the PCs on site and develop a framework to provide the best technique in which to do so. Chapter One: Introduction This chapter introduces the principal aim of the study, in addition to the proposed objectives and research questions. Introduction The construction industry has had HS regulations in place known as the CDM regulations for a number of years now which have recently been renewed. The CDM regulations have application to a majority of construction projects undertaken in the UK which provide the industry with specific standards involving HS that are considered acceptable to the government and alternatively, to the construction worker. The latest regulations represent an important trend towards the paternalistic intervention of the government in relation to health and safety. Historically, the ambit of health and safety on site was left to the individual company; this was due to the requirements of the Conservative governments, and if things went wrong it was up to the individual to cope. This tendency has developed during the twentieth century with great attention in recent years of government focus in developing the HS of the construction worker. 2.2 million (1 in 14) People work in Britains construction industry, making it the countrys biggest industry, but it accounts for 16% of major accidents and 25% of fatal injuries. It is has also been acknowledged that for a number of years in the UK it has been one of the most dangerous industries to be employed in. In the last 25 years, over 2,800 people have died from injuries they received as a result of construction work. Many more have been injured or made ill. HSE deals with all aspects of construction work in England, Scotland and Wales. In 2006-2007 alone there were 77 fatal injuries to workers in the construction industry, this was a 28% increase to the 59 in 2005-2006. The 77 fatalities in the construction industry during 2006-2007 accounted for 32% of all worker deaths. The rate of fatal injury to workers per hundred thousand rose to 3.7 in 2006-2007 compared to that of 3.0 in 2005-2006. In providing these statistics relatively closely to the date the fatality occurred, this means many cases are still under investigation. Consequently, these figures are highly provisional, and may be subject to revision as more relevant information becomes available. * The term Workers includes employees and the self-employed combined. RIDDOR (The Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 1995) is the primary determinant as to whether a fatal accident is included in these figures or not. Improvements regarding the Health and Safety in the construction industry are urgently needed as it remains a disproportionately dangerous industry which is important not only for the people involved in the industry but also for the expected 2-3% growth within the next 5 years. The improvements require significant and permanent changes in duty holder attitudes and behaviour. Since the original CDM Regulations were introduced in 1994, concerns were raised that their complexity and the bureaucratic approach of many duty holders frustrated the Regulations underlying health and safety objectives. These views were supported by an industry-wide consultation in 2002 which resulted in the decision to revise the Regulations. The new CDM 2007 Regulations revise and bring together the CDM Regulations 1994 and the Construction (Health Safety and Welfare) Regulations 1996 into a single regulatory package known as the CDM regulations 2007. The health and safety process has always been a much talked about topic within England and Wales every since the first CDM regulations were launched in 1994. The need to reform this process has been highlighted by research carried out by the health and safety executive which shows that there is need for improvement in the implementation of these regulations which is the main reason for the introduction of the CDM regulations 2007. The research shows that: These have been developed in close consultation with construction industry stakeholders. The proposal for the CDM 2007 aims to: simplify the Regulations to improve clarity and make it easier for everyone to know what is expected of them; maximise their flexibility to fit with the vast range of contractual arrangements; focus on planning and management, rather than the plan and other paperwork; encourage co-ordination and co-operation, particularly between designers and contractors; and Simplify the assessment of the competence of organisation. The Approved Code of Practice (ACoP) has special legal status and gives practical advice for all those involved in construction work. If you follow the advice in the ACoP you will be doing enough to comply with the law in respect of those specific matters on which it gives advice. The ACoP which includes a copy of the CDM regulations explains: The legal duties placed on clients, CDM co-ordinators, designers, principal contractors, contractors, self-employed and workers. The circumstances in which domestic clients do not have duties under CDM 2007 (but that the regulations still apply to those doing work for them). Gives information on the new role of CDM co-ordinator a key project adviser for clients and responsible for coordinating the arrangements for health and safety during the planning phase of larger and more complex projects. Which construction projects need to be notified to HSE before work starts and gives information on how this should be done. How to assess the competence of organisations and individuals involved in construction work. How to improve co-operation and co-ordination between all those involved in the construction project and with the workforce. What essential information needs to be recorded in construction health and safety plans and files, as well as what shouldnt be included. Rationale for the Research The subject of this dissertation developed from a personal interest in the Health and Safety aspect of the construction industry and the significant research within the industry on how to minimise the injuries and fatalities on site. Most of this research has concentrated on the best ways to improve the implementation process of the CDM regulations 2007, whether the changes are necessary from the CDM regulations 1994 and in terms of whether these changes have brought about the desired results and effect on the industry that it intended I.e. have the CDM regulations brought about an improvement in the safety of site work with regards to a clearer, faster and easier process of implementation. Having looked at a wide range of literature and internet sites on the CDM regulations it is clear to me that there was evidence that the introduction of the CDM regulations was regarded by professionals as advantageous to the industry, however there are certain people that believe it has been less effective than it should have been on the industry. Although people have highlighted problems with the CDM regulations it is definitely an introduction by the government that is here to stay. This consideration has led me to undertake research into whether the new legislation has been implemented successfully and whether the changes are necessary. This was implemented under the research title; the implementation of the CDM regulations under the CDM co-ordinators. The CDM regulations have the potential to make a significant impact on the industry with regards to health and safety however it is unrealistic to think that this can be achieved very quickly without encountering any problems in an area which has had much debate regarding this topic. It will take time before the new legislation will be free flowing however improvements in both effectiveness and efficiency can be expected as lessons are learnt. E.g. more home CDM co-ordinators becoming qualified. The following information in this chapter gives further details about the principle objectives for this research topic. Aim As a result the fundamental aim of this study is to determine whether the Health and Safety Commissions aim is achievable and thus, determine whether there is a foreseeable optimistic future for the reduction of accidents within the construction industry. The overall aim of the project is to produce a coherent document which catalogues, in which detail the impacts which the CDM regulations have had upon the construction industry and which encapsulates some original, primary research. Objectives This aim will be investigated through a series of key objectives: To provide an understanding on the CDM regulations, evaluating the need, efficiency and reliability of them; To establish different professions understanding of the CDM regulations; To establish the application of the CDM regulations at both organisational level and implementation of the CDM regulations; To determine whether there is a foreseeable optimistic future for the reduction of accidents within the construction industry; To examine, compare and contrast the perceptions of construction professionals in order to determine whether the number of accidents on construction sites are likely to significantly decrease in the next five years; To assess whether the construction professionals are sufficiently protected by the CDM regulations and identify any implementing techniques that aid, or otherwise, the CDM regulations. The study will follow with a review of current literature regarding the effectiveness of the CDM regulations, and a description of the methodology used in order to collect and analyse the results of the data collected. The outcome of the findings will be discussed and conclusions will be made incorporating both limitations of the study and recommendations for future research. Outline Research Methodology My research topic has incorporated two research approaches in order to collect information which were the following: secondary data collection and fieldwork research. Secondary data collection This form of research refers to the desk study approach where data is obtained from sources that cite from primary sources. This method had been used to achieve the first, fourth and fifth objectives. These sources will be critically appraised by means of a systematic literature review which will cover textbooks, newspaper articles, research journals, thesis, reports, trade publications, etc. Fieldwork research This form of research refers to the methods of primary data collection which can take the form of a number of practical approaches. This method of research was accomplished to utilise objectives two and three. The selected method for this thesis will be a structured survey approach in the form of personal interviews and a questionnaire. This method was selected as it is the best form of gathering data from a large number of respondents in a relatively short time frame. The interviews and questionnaires will adopt a semi structured format, employing mainly open questions to gather the data. The research method is a way in which the research objective can be questioned and achieved. Throughout my research I will be using a number of core sources of references such as the books, the internet, newspapers, companies, journals and questionnaires in order to carry out my objectives. I will decide upon the most appropriate research strategy which can be carried out in two ways depending on the purpose of the study and the type and availability of the information required. These two methods can be classified as Quantitative and Qualitative. Quantitative research can be defined as objective in nature. It involves the description or analysis of statistical procedures that involves specific measurements of variables to determine whether a theory holds true. Qualitative research on the other hand can be defined as subjective in nature. It does not involve the use of specific variables, but relies on reasons behind various aspects of data. It emphasises the means, experiences and di fferent descriptions of topics from different authors points of view. Chapter Two: Literature Review Introduction This chapter is intended to critically appraise issues and statements identified by the literature review and ascertain the industries, practitioners and authors opinions of the progress, implementation and success of the CDM regulations. A wide range of key literature from sources such as research journals, refereed conferences, thesis, textbooks, reports, trade publications and newspaper articles on this research topic were reviewed, analysed and appraised of their strengths and weaknesses. To best demonstrate these perceptions the author has chosen to break the critical appraisal into the following sub-headings; Cost of Implementation, Health and Safety Training, Additional Paperwork, Success of CDM. In doing so, it is anticipated that some individuals connected with the construction industry will be interviewed and their views on the success or failure of the CDM regulations on the construction industry. It is anticipated that these views will be assessed in conjunction with valid information gathered in relation to the CDM regulations and how they have developed within the UK in recent years. There will also be an assessment of how the CDM regulations could be improved upon, and how the project has contributed to this assessment. Chapter Three: CDM Regulations 2007 3.0 CDM Regulations 2007 The new Construction (Design and Management) Regulations were brought into place on the 6th April 2007 in order to consolidate the Construction (Design and Management) Regulations 1994 as well as the Construction (Health, Safety and Welfare) Regulations 1996 into one regulatory package. In order to help achieve the implementation of this new process the supporting guidance for these regulations has been revised with the aid of a new approved code of practice available to assist each professional with their individual duties under the CDM regulations 2007. https://www.martineau-johnson.co.uk/publication_event/updates/CDM%20regulations%202007%20Flyer%20April.pdf It is necessary for all professionals involved in the construction industry to be aware of the new CDM regulations 2007 as they apply to all construction work. The aims of these regulations are to: Improve health and safety within the construction industry; Ensure that there are the right people for the right job at the right time to manage the potential risks on site; To focus on effective planning and managing risk manage the risk not the paperwork. 3.1 The Client A client can be described as an individual or organisation who in the course or furtherance of a business has a construction project carried out by another or himself, this however excludes domestic clients but not domestic premises. A domestic client is someone who lives or will live, in the premises where the work is carried out. The roles of the client under the new CDM regulations 2007 are similar to that of the 1994 regulations however they have been given a higher profile with emphasis on providing the construction team is provided with strong leadership and ensure that the client is responsible for their influence on the HS of people working on, or affected by the project. It is the role of the client under the CDM regulations to appoint a CDM coordinator and a principal contractor on all notifiable projects in order to advise and co-ordinate activities. It is the responsibility of the client to carry out a number of duties on all projects: Must check all appointees competence and resources using the ACoP competence criteria; Must also ensure that enough time and resource is provided to allow the project to be delivered safely, what you want, when you want it and on budget; Provide key information to contractors and designers; Ensure everyone involved with the project co-operate and co-ordinate their activities; Establish a competent project team as soon as possible to ensure the project is safe to build, safe to use, safe to maintain and deliver good value; Ensure suitable management arrangements are in place; Ensure adequate welfare facilities are on site; Ensure workplaces are designed correctly which should comply with the WHSW. On all notifiable projects the clients must carry out the above duties as well as: They must appoint a competent CDM Co-ordinator and provide them with key information; They must appoint a competent principal contractor; Ensure that there are suitable welfare facilities provided on site as well as a construction phase health and safety plan has been produced before the construction phase can start; Retain and provide access to the HS file as well as revise it with any new information; It is not the responsibility of the client to audit or supervise the work on site. In order for the client to explain their management arrangements then they may ask their project team or contractors to do this for them. For small projects where contractors employ less than 5 people then demonstrating management arrangements may be in the form of an oral briefing rather than have everything in writing. The client must perform simple checks regularly to ensure their management arrangements are being followed which include there is adequate protection for workers and the public on site, ensuring that there is good co-operation and communication between the contractors and the designers. They must also ask the contractors to confirm that the arrangements they agreed upon have been implemented. 3.2 The Coordinator The person appointed to advise and assist the client on how to comply with the CDM Regulations during the project, and to ensure that suitable arrangements are made and implemented for the co-ordination of health and safety measures during planning and preparation for the construction phase. The CDM coordinators replaced the role of the Planning Supervisor under the CDM regulations 1994 and are only appointed on notifiable contracts but this appointment must be made early. This role has been changed due to the overall consideration that the Planning Supervisor has not been a success with more expectation placed on the new role of the coordinator. The main aim of the coordinator is to act to reduce risks during the construction process rather than to generate unnecessary paperwork. The CDM coordinator has the responsibility to carry out a number of Duties during the project: Advise the client about selecting competent designers and contractors; Help identify what information will be needed by designers and contractors; Co-ordinate the arrangements for health and safety of planning and design work; Ensure that HSE is notified of the project (unless a domestic client); Advise on the suitability of the initial construction phase plan; Prepare a health and safety file (information for the client to enable future cleaning, maintenance and alterations to be carried out safely) You are the key advisor to the client and the catalyst for effective communication and co-ordination throughout the project A CDM coordinators role can be filled by anybody, however they must fulfil the competence requirements given in the ACoP, if no appointment has been made then it is generally the client who will carry out this role. 3.3 The Designer A designers duties under the CDM regulations applies to all construction work including domestic projects as well as non-notifiable ones. A designer can be described as someone that carries out the design process or specifies building work I.e. makes any project related decision, which therefore means there are a wide number of parties that can fall under this profession, such as Design and construction contractors, civil and structural engineers, clients who specify, etc. A designer has the responsibility to carry out their duties on all projects involving construction work. This includes: Making sure that the Client is aware of his duties; Making sure the client is adequately resourced and competent to carry out their own duties such as the health and safety issues that are involved with the design of a project; Provide substantial information about any potential risks that may be associated with the design that can be put in the health and safety file; Coordinating their work with others in order to improve the way potential risks are managed and controlled; Co-operate with others such as CDM Co-ordinators and the Principal Contractor; Avoiding foreseeable risks during the design work for people involved on the current and future uses of the structure. They should also eliminate hazards and risks associated with those hazards that remain. The most important role for a competent designer is to eliminate the hazards and reduce risks. 3.4 The Principal Contractor The changes in the CDM regulations have brought little change to the duties of the principal contractor. An early appointment of a principal contractor by the client is necessary on all notifiable projects. The principal contractor must ensure that everyone they appoint such as sub-contractors as competent. The main aim of the PC is to ensure that the construction phase is properly planned, managed, monitored and resourced. The principal contractor has a number of duties that must be carried out throughput the project: Inform contractors of the minimum time allowed for planning and preparation Provide relevant information to contractors Ensure safe working, co-ordination and co-operation between contractors Construction phase health and safety plan is prepared and implemented Plan needs to set out the organisation and arrangements for managing risk and co-ordinating work Plan should be tailored to the particular project and risks involved Suitable welfare from the start Prepare and enforce site rules as required Give reasonable direction to contractors including client appointed contractors Prevent unauthorised entry Provide plan to those who need it Promptly provide the CDM co-ordinator with information for the file Liaise with CDM co-ordinator in relation to design and design changes Ensure all workers have been provided with suitable health and safety induction, information and training Ensure the workforce is consulted about health and safety matters Display key project information to workers It is not the responsibility of the PC to provide training for workers they do no employ however contractors do. Neither do they have to undertake detailed supervision of contractors work. The construction phase plan must only be filled in with relevant information rather then endless generic paperwork. Other Contractors Sub Contractors are present on all projects not just notifiable ones. They are unable to start work on a construction site until they have obtained the pre construction information necessary from the client or PC. The sub contractors must manage their own work to make sure that their workers are safe as well as ensuring that hey and those they appoint are completely competent and adequately resourced. On all projects they must: Inform any contractor that they engage, of the minimum amount of time they have for planning and preparation Provide their workers (whether employed or self-employed) with any necessary information and training and induction Report anything that they are aware of that is likely to endanger the HS of themselves or others Ensure that any design work they do complies with CDM design duties Comply with the duties for site health and safety Co-operate and co-ordinate with others working on the project Consult the workforce Not begin work unless they have taken reasonable steps to prevent unauthorised access to the site Obtain specialist advice (e.g. from a structural engineer or occupational hygienist) where necessary On notifiable projects they must: Check that a CDM co-ordinator has been appointed and HSE notified before they start work Co-operate with the principal contractor, CDM co-ordinator and others working on the project Tell the principal contractor about risks to others created by their work Comply with any reasonable directions from the principal contractor Work in accordance with the construction phase plan Inform the principal contractor of the identity of any contractor he appoints or engages Inform the principal contractor of any problems with the plan or risks identified during their work that have significant implications for the management of the project Inform the principal contractor about any death, injury, condition or dangerous occurrence Provide information for the health and safety file Chapter Four: Methodology This chapter discusses the different methodological approaches for this study. Detailed accounts of the specific research strategies are also examined, highlighting the methods used to analyse and interpret the data collected. Finally, the location of the study and methodological restrictions are also considered. Comparative data can be collected in various forms, these being experimental, commercial and official data. Experimental data was chosen because it is derived from real life situations, and this was essential giving the fundamental aim of assessing the future of the CDM regulations. Nevertheless, it must be acknowledged that the reliability of experimental data is largely dependant on the willingness and honesty of the professional to participate (Morris et al., 2001). Research Strategies In order to explore the main perceptions and attitudes of principal contractors, a self completition postal questionnaire was decided on rather than a telephone survey or an interview survey primarily because it was Christmas time during the main period of data collection, and so it was assumed many construction workers would be on their Christmas break and would not be available for an interview or present in the office for a telephone inquiry. The idea behind the postal questionnaire was that they could complete it and send it back whenever they had time. Questionnaires are an indispensable tool when primary data is required about people, their behaviour, attitudes, opinions and awareness of specific issues. The questionnaires were enclosed with a self addressed envelope, intending to speed up and ensure the return of the questionnaires. One potential problem with the questionnaires was that they might not be filled out by the right person. Twenty principal contractors were randomly selected from a list of construction companies in the counties of Gloucestershire and Oxfordshire, provided by the yellow pages. Each company was contacted by telephone to explain the basis of the study find out who to send it to, and gain his or her agreement to participate. A tick box at the bottom of every questionnaire gave the farmer the choice of whether or not they wanted to be contacted again, in the hope of setting up a number of interviews. The questionnaire design was of a semi-qualitative design, as the questionnaires incorporated a number of open and closed questions. The closed questions differed between multiple choices, dichotomous, likert, categorical and scaled questions. Although, open questions can be more difficult to understand and are perhaps harder to analyse than closed questions, it was important to include them in the questionnaire to gain a deeper understanding of the principal contractors views and perceptions. This was essential as open questions can lead to areas of discussion for proceeding interviews and furthermore, open questions allow more freedom to the respondent, and are less encumbered by a prepared set of possible replies (Oppenheim, 1986). The design of the questionnaire consisted of 14 questions, laid out in a simplistic manner so as not to confuse the reader. The questionnaire had 3 or 4 background questions to start. Commands such as please tick were highlighted in bold. Questionnaire examples can be seen in Appendix 1. A pilot questionnaire was given to some local construction workers in my village, and although no major problems appeared evident, it was clear that some older farmers did not fully understand the concept of sustainability, and so in the real questionnaires a definition of sustainability was included. Secondary Data A review of the current literature on the principal contractors was essential for this study in order to assess the current perspectives and opinions. Data Analysis and Interpretation The analysis of the questionnaires, interviews and literature on the CDM regulations will be in the form of statistical analysis and discourse analysis. Analysis of the data from the questionnaire will be compare and contrast in order to identify trends, similarities and differences. The majority of my findings will be presented visually in graphical and statistical formats; in contrast much of the data analysis from the open questions will be purely descriptive. Discourse analysis can be seen as an, interpretive and deconstructing research tool. Although it does not provide definite answers, it provides the researcher with useful insights, knowledge and conditions behind a specific problem (University of Texas, Information School, 2005). The quantitative data from the questionnaires will be interpreted using the Statistical Package for Social Sciences (SPSS). All the data from the closed questions will be coded in excel and then imported in to SPSS. SPSS was chosen because of its ability to effectively synthesise and correlate non-parametric quantitative data. Specific tests such as Chi-squared and Spearmans rank were used in order to investigate any statistical significance of relationship between different variables and hypothesis such as larger construction companies are more likely to have a fatal injury. Methodological Considerations There are certain considerations that must be made in relation to the methodology of this study. Firstly, s already mentioned it was intended that a number of interviews were to be arranged with principal contractors. However due to the length of time it took to actually make contact with farmers and for them to agree to the postal survey and return the questionnaires there was not enough time left of the holiday period to conduct any interviews. Finally, in order to protect the anonymity and confidentiality of the professional who participated in this study, all the names of the PCs have been changed. Chapter Five: Results, Analysis and Discussion This section presents and analyses the data collected from this study, identifying similarities and differences with previous work and discussing the relevance of this in relation to the aims and objectives of this study. Although presented together, the results and discussion will be divided into chapters analysing objective 1, objective 2 and objective 3. The following chapter will present the conclusions of this study, highlighting limitations of the study, recommendations for developing the effectiveness of the health and safety regulations and recommendations for future research. Chapter Five: Conclusion and Recommendations Bibliographies Oppenheim, A (1986) Questionnaire Design and Attitude Measurement, Gower Publishing Company, London. University of Teas Information School (2005) (Internet) Available from: https://www.ischool.utexas.edu/~palmquis/courses/discourse.htm (Accessed: 19th March 2008) www.pickatrail.com(2006) (Internet) Available from: https://www.pickatrail.com/jupiter/location/europe/england/oxfordshire.html (Accessed: 21st March 2008) https://www.citb-constructionskills.co.uk/healthsafety/cdmregulations/guidance/cdmcoordinators.asp https://www.hse.gov.uk/statistics/industry/construction.htm List of Abbreviations HSC The Health and Safety Commission HSE The Health and Safety Executive CDM Construction (Design and Management) Regulations UK United Kingdom WHSW Workplace (Health, Safety and Welfare) Regulations 1992 PFI Public Finance Initiative PPP Public Private Partnerships CPP Construction Phase Plan HSF The Health and Safety File RIDDOR The reporting of Injuries, Diseases and Dangerous Occurrence Regulations 1995 GDP Gross Domestic Product Subbies Sub-Contractors

Aspects of Managerial Accounting Assignment Example

Essays on Aspects of Managerial Accounting Assignment The paper "Aspects of Managerial Accounting" is a wonderful example of an assignment on finance and accounting. Relevant and irrelevant cost/revenues in â€Å"make or buy decisions† or â€Å"leave or buy decisions†Decision making is a very important process for every business entity which needs conscious efforts from management during this process as the effects of this process are long-lasting and therefore if not made consciously can let the company towards the closure of business activities. Before making such decision-relevant facts and figures regarding relevant costs and revenues shall be taken into consideration. The costs and revenues are considered relevant for â€Å"make or buy decisions† and â€Å"leave or buy decisions†.For the material: The cost of material that is relevant for these decisions is lower of the fair market value or cost of that material when the material is in the stock when it is not present in stock the relevant cost would be Fair market value of the material.For Labor: relevant cost for labor when free labor (or free hours) are availab le would be the wages that would be paid to them and any extra bonus for that work. While when there are idle labor hours the cost of labor would include wages that would be paid plus contribution loss from abandoning the other project.Overheads: The cost of overheads that would be considered as relevant would include variable overheads only and fixed overheads would consider as irrelevant.Qualitative factors of the alternatives shall also be considered as selling goods of lower quality would impair the company’s goodwill causing loss of customers.Short-run and Long-run Pricing decisions: Short term pricing decisions are made for the one time or less frequent sales options which are intended only to account for the current costs and profits that are these decisions are time bounded or contract based and profits in this kind of decisions are kept higher.Long-term pricing decisions are a decision that is made taking into consideration future relationships with the customer that is profit in this kind of decision are kept lower. Evaluation of business performance using four perspectives of the balanced scorecard:The performance of a business entity can be evaluated by evaluating the four perspectives of the entity that is its ability to satisfy its customers and stakeholders, effective financial performance, the efficiency of its internal business processes and its ability to grow over time and remain competitive through the innovation of new technologies and items. After evaluating these factors which creates a balanced scorecard it can be understood that how an organization is performing.Economic Order Quantity:Economic order quantity theory is a management tool for inventory level control which defines a reorder level and order quantity which would be most beneficial to the entity in terms of lowest ordering cost and maintenance cost. That is the level where both ordering costs and maintenance costs are equal.Using different Capital Budgeting Techniques to evaluate long-term investment alternatives:Long term investment decisions are made after taking into consideration its future worth by projecting about it future cash flows and discounting it (Discounted cash flow method) at an interest rate or a capitalization rate or capitalization factor (Direct Capitalization method) or comparing it with the company’s current EPS rate (internal rate of return method) or other methods that is payback or sensitivity analysis. The choice among alternatives shall be made on the basis of results from these methods in order to reach a prudent and profitable decision. Return on investment using different approaches:DuPont Approach according to this of calculating return on investment is calculated as the ratio between the profit of the company and its assets that is how effectively a company uses its assets.Return on Investment= Net profit/Total AssetsResidual income approach:Residual income= Net income - capital charge (total capital* cost of equity)Economic Value method: This approach measures a company’s worth by calculating its economic value that is its profits and costs.

Currency Speculation and Dollar Fluctuations †MyAssignmenthelp.com

Question: Discuss about the Currency Speculation and Dollar Fluctuations. Answer: Introduction: The assignment takes reference of the article Is the Australian Dollar overvalued written by Myriam Robin, published on February 10, 2017, in Sydney Morning Herald. This section of the assignment discusses the main issues of concern, which has been highlighted in the concerned article. The Australian economy is one of the most stable and eminent economies in the global framework and therefore the value of the domestic currency and the changes in this value have immense implication on both the domestic and the international economic scenario (Delatte and Lpez-Villavicencio 2012). As per the article, the performance of the Australian dollar, in the recent period has been impressive according to the opinion of the Reserve Bank of Australia. However, this opinion is not an unanimous one as one part of the speculators and economists assert that the currency has been appreciating in its value in the recent times. This trend was also observed empirically with the rise in the value of Australian dollar, when measured in terms of the domestic currencies of America, China, Japan, Britain and others (Smh.com.au, 2017). This was, however opposed by another school of thought, including the NAB currency strategist, according to whom there has been no noticeable appreciation in the value. Instead there has been slight devaluation of the currency compared to the earlier periods, which actually helped the economy to float when the effects of mining boom started dissipating. On the other hand, the opinions are unanimous in case of the trends observed in the value of the Australian dollar when measured with respect to the Trade Weight Index of the country. The trend, as suggested by the article has been clearly positive, mainly because of the increase in the terms of trade of the country (Diebold 2012). The value of the Australian dollar, however, is subjected to change provided the interest rate in the USA changes when the rate of interest in the country is kept the same. The foreign exchange market of a country as well as in the international scenario is like any other market as per the theoretical economic framework and the equilibrium and the stability in this market is also determined by the demand and the supply forces. The consumers and the suppliers in the currency market mainly are comprised of the multinational companies, the international banks and those speculators who invest in the risk and returns in this market (Frenkel and Johnson 2013). The demand supply model in the foreign exchange market attributes the determination of the value of a currency at any particular point of time, to the demand and the supply scenarios present in the market during that time. These in turn gets determined by the economic factors like the rate of inflation, interest rate and the regulatory policies taken by the governing authority of the concerned country (Rios, McConnell and Brue 2013). The situation in the foreign exchange market in the Australian economy can be analyzed with respect to the above discussion and the above figure. The Australian economy keeps the exchange rate at a floating level and therefore, the value of the currency is highly influenced by the demand and the supply of the domestic currency in the money market, both in global as well as in international scenario (Andrade and Prates 2013). The demand side determinants of the Australian dollar are the following: Export demand for the goods and services which are produced in the country and are demanded by the foreign residents The international tourists that Australia attracts every year The venture of the foreign multinational companies in the markets of the country, both in terms of expanding its business and setting up of production units in the country itself The amount of foreign direct investment the country receives from abroad The demand for the domestic currency of the country by the speculators, whose demand for the same usually increases with an expectation of a future increase in the value of the Australian dollar (Forbes.com, 2017) The supply side determinants, on the other hand, in this scenario can be shown as follows: The demand for foreign exchange by the domestic players of the country, who need the foreign exchange for the purpose of importing goods and services from the other countries. The demand for asset building in other countries by the residents of Australia The expectations and speculations regarding the future value of the domestic currency, by the investors, who, if expect the value to fall, will increase the supply of the Australia dollar in the international market (MacDonald and Stein 2012) Apart from the above-discussed factors, the rate of interest and the price levels prevailing in the country vis--vis the rates in the global framework also plays a crucial role in determining the value of the domestic currency of the country. In the current business scenario, in the global economic framework, a lot of the business activities of the country, especially those with foreign countries depend on the value of the domestic currency prevailing in the economy and vice versa. Therefore, the monitoring and analyzing of the trends in the dynamics of the domestic value of the currency is important as with time the countries are getting more interlinked, especially through trade. The movement of the domestic currency has crucial implications on the trade statistics as well as the growth of the country (Burstein and Gopinath 2013). To analyze the trends of the same, it is necessary to compare the value of the domestic currency with respect to the currency of the USA, which is one of the most stable currencies in the international scenario and is conventionally used broadly for this purpose. With respect to the US dollar, the performance of the Australian dollar in the last three years can be seen from the following figure: The figure above, published by the Reserve Bank of Australia, incorporates the changes in the concerned exchange rate over the last few years on a six-months basis. From the above figure it can be seen that the exchange rate of the country has been considerably high in the year 2014 with the rates prevailing above 0.90 during this period. However, the rate started falling after that till the first half of the year 2016 with the lowest value going down below 0.70 during this time span. After this, there has been a little and almost inconsiderable hike in the exchange rate value of the domestic currency of Australia, with the values prevailing near 0.75 in the current period. The statistics, however is a bit different when the when the dynamics in the value of the currency is seen in terms of the Trade Weight Index of the country, which can be seen with the help of the following figure: The data of the Trade Weight Index reflects the term of trade prevailing in the country and thus, indirectly reflects the condition of the trade sector of the concerned country. The trade weight index of the country, in this case, can be seen to be substantially high during the year 2014, with the value remaining near 72.5. The value, like that of the exchange rate, fell after that period and the fall continued till January 2016 before coping up again. Post the first half of 2016, the TWI is seen to have increased, though nit reaching the initial level, but still considerably. The trade weight index is seen to have reached to 65 in the current period from that of 60, which was prevailing in the economy during the second half of 2015. As discussed above, it is evident that the value of the domestic currency of Australia is highly dependent on the demand and supply conditions prevailing in the international market, as the value of the same is kept at a floating framework by the monetary authority of the country. The recent changes in the value of the Australian dollar can be empirically seen to be affected by the recent fluctuations in the price of oil and iron ore in the recent international scenario. As the data suggests, the fall in the value of these products also led to a considerable fall in the Australian exchange rate, thereby implying that the value of the currency moves more or less in line with the changes in the price of the commodities in the international scenario (Basher, Haug and Sadorsky 2012). The external sector of the country and its relation with the global economic giants like China, the USA and Japan can be seen from the recent global economic phenomenon. Here, the depreciation of the value of Japanese yen led to an upward pressure on the value of the Australian dollar as more and more investors went on drawing their financial resources from the former to the Australian economy. The fluctuations in the value of the domestic currency of a country and the changes in the exchange rates of the same have direct implications on the economy of the county, especially the external sector as the export import dynamics are considerably affected by these concerned fluctuations. In general, overvaluation of the domestic currency decreases the exports and increases the imports in a country (Atkin and Connolly 2013). For an alcoholic beverage producer of Australia, the overvaluation of the Australian dollar, thus, is expected to have implications on the export of his products in the USA. The overvaluation of the Australian dollar is in general expected to decrease the overall export of his product to the USA. However, by how much the export of his product will decrease depends on the type of alcoholic beverage he is selling, as the demand for beer in the USA is much higher and inelastic than the demand for other types of alcoholic beverages (Michie et al. 2012). However, in an overall framework, as alcoholic beverage does not fall under the domain of necessary goods, the overvaluation of the domestic currency will make the product more costly to the foreign nationals and thus will decrease the demand, thereby leading to a fall in the revenue of the concerned alcohol producer. Apart from increasing the import and decreasing the exports of the country, the overvaluation of the Australian currency also leads to increase in the aggregate import demand in the country with an increase in the purchasing power in the hands of the residents of the country. The overvaluation of the domestic currency in the Australian economy also affects the investment scenario, both by the domestic investors in the foreign market and by the foreign investors in the domestic market (Schulmeister 2013). As has been asked in the concerned question, to bring down the exchange rate in the Australian market, from US 76 C to US 72C, the governing authority has to embark on the process of evaluation of the domestic currency. This process involves mainly the release of the domestic currency in the international market, which can be done by activities like dumping and printing of the money. The imports in the country can be increased and restrictions can be imposed on the exports by the country to facilitate the devaluation of the currency in the economy, which in turn increases the supply of the domestic currency in the international market (Patro, Wald and Wu 2014). The devaluation of the domestic currency in an economy has considerable implications on the economic conditions of the country as a whole. On one hand, where the devaluated currency facilitates exports in the country, with the goods and services produced in the economy becoming more cheap to the foreign consumers and thus helps the domestic producers by increasing the nominal revenue earned by them. However, the fall in the value of the domestic currency makes importing goods and services painful for the domestic residents, as the real value of the domestic currency becomes less due to the devaluation (Towbin and Weber 2013). References Andrade, R.P. and Prates, D.M., 2013. Exchange rate dynamics in a peripheral monetary economy.Journal of Post Keynesian Economics,35(3), pp.399-416. Atkin, T. and Connolly, E., 2013. Australian exports: global demand and the high exchange rate.RBA Bulletin, pp.1-10. Basher, S.A., Haug, A.A. and Sadorsky, P., 2012. Oil prices, exchange rates and emerging stock markets.Energy Economics,34(1), pp.227-240. Burstein, A. and Gopinath, G., 2013.International prices and exchange rates(No. w18829). National Bureau of Economic Research. Delatte, A.L. and Lpez-Villavicencio, A., 2012. Asymmetric exchange rate pass-through: Evidence from major countries.Journal of Macroeconomics,34(3), pp.833-844. Diebold, F.X., 2012.Empirical modeling of exchange rate dynamics(Vol. 303). Springer Science Business Media. Forbes.com (2017).Forbes Welcome. [online] Forbes.com. Available at: https://www.forbes.com/2006/08/23/forex-trading-education-in_swh_0823investools_inl.html [Accessed 7 Oct. 2017]. Frenkel, J.A. and Johnson, H.G. eds., 2013.The Economics of Exchange Rates (Collected Works of Harry Johnson): Selected Studies(Vol. 8). Routledge. MacDonald, R. and Stein, J.L. eds., 2012.Equilibrium exchange rates(Vol. 69). Springer Science Business Media. Michie, S., Whittington, C., Hamoudi, Z., Zarnani, F., Tober, G. and West, R., 2012. Identification of behaviour change techniques to reduce excessive alcohol consumption.Addiction,107(8), pp.1431-1440. Patro, D.K., Wald, J.K. and Wu, Y., 2014. Currency devaluation and stock market response: An empirical analysis.Journal of International Money and Finance,40, pp.79-94. Rba.gov.au (2017).Exchange Rates | RBA. [online] Reserve Bank of Australia. Available at: https://www.rba.gov.au/statistics/frequency/exchange-rates.html [Accessed 6 Oct. 2017]. Rios, M.C., McConnell, C.R. and Brue, S.L., 2013.Economics: Principles, problems, and policies. McGraw-Hill. Schulmeister, S., 2013. Currency speculation and dollar fluctuations.PSL Quarterly Review,41(167). Smh.com.au, M. (2017).Is the Australian dollar overvalued?. [online] The Sydney Morning Herald. Available at: https://www.smh.com.au/business/markets/currencies/is-the-australian-dollar-overvalued-20170210-gu9wl7.html [Accessed 6 Oct. 2017]. Towbin, P. and Weber, S., 2013. Limits of floating exchange rates: The role of foreign currency debt and import structure.Journal of Development Economics,101, pp.179-194.

Teacher Expectancy Effect free essay sample

In other words, when a teacher stereotypes or makes an unreliable generalization about a student, she may then act based on that stereotype. This hence results in the false generalization becoming an accurate and true one. The teacher’s ‘prophecy’ is therefore fulfilled by the teacher herself. This is self-fulfilling prophecy. On the other hand, the labelling theory is one defined as the condition as to â€Å"how a person comes to be labelled as deviant or to accept that label† (Schaefer amp; Lamm, 1995, p. 187). Labelling theory is one that is frequently encountered in criminology. The theory â€Å"attempts to explain why certain people are viewed as deviants†¦while others†¦are not seen in such harsh terms†. Thus, it emphasizes more on the response towards behaviour, rather than the act categorizes people as being deviant. So, some prefers to call this theory as the societal-reaction approach (Schaefer amp; Lamm, 1995). This section of the paper would attempt to discuss on the few different case studies involving the teacher-expectancy effect before giving the pedagogical approaches linked to this approach. We will write a custom essay sample on Teacher Expectancy Effect or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page 3. 1. 1 Case studies In order to determine the relationship between teacher expectations and students performance, Rosenthal amp; Jacobson (1963) conducted a research at an educational institutions. The research involved testing of the IQ level of a group of children from the first grade to the sixth grade at Oak School. They chose a test called the Tests of General Ability (TOGA) at the start of the academic year. The advantage of this test was that it is not dependent on the skills students had learned in school. They named this test as the â€Å"Harvard Test of Inflected Acquisition†. Among this group of students, 20% were identified as having a high potential of academic ‘blooming’ and hence were notified to the teachers. What the teachers were not informed of was that these 20% had been in fact selected randomly out of all those who had taken the test. At the end of the academic year, another similar IQ TOGA test was administrated to the students and results collected were significant. Taking the mean (average) point of all the students from the first grade to the sixth grade, it was found that the experimental group (these 20% of randomly selected students) showed a 12. 2 point increment as compared to those in the controlled group (the rest of the 80%) of having only a 8. 42 point increment. So, the data showed that the randomly selected group whom the teacher expected or believed (in their heads) to perform better scored significantly higher than the rest of their friends even though they took the same exam and studied in the same classroom with the same syllabus and teacher the whole year round (Rosenthal amp; Jacobson, 1963). Another interesting research was also carried out by the famous education sociologist Ray Rist (1970 as cited in Covington, 1992). Rist observed that in a kindergarten classroom with teacher and students who are all African American, the teacher had the tendency of placing the â€Å"better† students at the table nearest to her, the â€Å"average† one beside the â€Å"better† ones and â€Å"the weakest† ones farthest from her. Note that these classifications (â€Å"better†, â€Å"average† and â€Å"weakest†) were all defined solely by the teacher according to her impressionistic perception, with nothing whatsoever like a placement test. This categorization was also found to be based on the social classes of the students, whereby the â€Å"better† ones belong to a higher social class and the â€Å"weakest† one from lower social classes (Covington, 1992, p. 140). Other researchers have also been carried out since then and the expectancy effect seems to thrive in all context of social life be it with university scholar at higher educational institutions or working adults at manufacturing company. This phenomenon has also been later coined as the â€Å"Pygmalion phenomenon† (Rhem, 1999). . 1. 2 Implications of teacher expectancy effect Hence, after we look at all these case studies, we could conclude that the students’ academic performance is clearly tied to teacher’s expectation. In other words, the students who were deemed as â€Å"better† or â€Å"good† ends up achieving better also due to the higher expectation that the teacher was giving to them. These result, especi ally Rosenthal and Jacobson’s, demonstrated extremely powerful self-fulfilling prophecy on the part of the teacher. This is because when a teacher forms certain expectations towards their students based on whatever characteristics (academic achievements, appearances, socioeconomic background, behaviour in class), she tend to behave according to these expectations, possibly even to the extent of being governed unconsciously by her expectations. As a result, she may very well treat students who she deemed â€Å"better† differently as how she would treat the rest of her students. For instance, she would give the â€Å"better† students a longer time to answer a question that she asked as compared to the â€Å"weaker† ones. On the other hand, she may ask a very simple question to the â€Å"weaker† students thinking that they cannot answer challenging ones and also to expect less from her student. This low expectancy that a teacher has towards her students would result in the students not trying their best or working their zone of proximal development to their fullest extent possible. In other words, students’ development, growth, and learning become restricted by the teacher who is teaching them.