Management Essay Example | Topics and Well Written Essays - 250 words - 2

Management - Essay Example uring industry like oil and gasoline, the transfer price becomes major factor for intermediate goods like crude oil which could be bought from its drilling division or from external market (Besanko et al., 2010). The major disadvantage of deciding to make intermediate products is that firms often require more than one intermediate good for their final product and therefore making them could turnout to be very complex with huge investment. Hence, it is not feasible for manufacturing firms to make intermediate goods when they are easily available in the open market. The main advantage of making intermediate goods is that company may not be dependent on the external market and could gain relative cost advantage within the industry if it has the resources available for intermediate goods as well as for the final product. For drilling companies of crude oil, their refinery divisions use their crude from their drilling division to make final products like gasoline. The transfer price in such cases is hugely cost effective. In general, the transfer price becomes a vital factor that dictates buying or making decisions for the intermediate

Explain the phenomenon of organisational commitment and analyse its Essay

Explain the phenomenon of organisational commitment and analyse its alleged relationship with organisational performance - Essay Example The most widely studied outcomes include employee retention, attendance, organizational citizenship, and job performance (Angle and Perry, 1981). Organizational commitment has become one of the major concerns of human resource these days. The enhancement of employees performance is issue for both profit and non-profit organizations. Non-profit organizations usually find it difficult to deal with this issue because of their inability to provide their employees with competitive compensations and benefits (Riveros andTsai,2011). One of the important objectives of an organizations human resource team is to keep employees motivated. It is because employees motivation results in commitment which in turn improves their performance and declines their desire to leave the organization. In order to achieve these results, organizations can devise a positive reward system. The purpose of this reward system is to retain employees. A positive reward system may include financial as well as non-financial rewards but mostly, non-financial rewards are proved effective to retain employees (Riveros and Tsai, 2011). Organizational commitment is a topic which has been studied by several authors. Nevertheless, the most important contribution was made by Modway, Steers and Porter (1979) in the form of Organizational Commitment Questionnaire. In order to fathom the importance of organizational commitment, it is important to clarify the concept (Riveros and Tsai, 2011). According to Colarelli and Bishop (1990), organizational commitment involves commitment to an organization as well as organizational goals. Allen and Meyer also proposed a measurement of organizational commitment in 1990. According to them, there are three components of organizational commitment including affective, continuance, and normative. The affective components include employees emotional attachment and their identification with the organization.