Motivation and job satisfaction

The movement of workers to act in a desired manner has always consumed the thoughts of managers. In many ways, this goal has been reached through incentive programs, corporate pep talks, and other types of conditional administrative policy. However, as the workers adjust their behaviour in response to one of the aforementioned stimuli, is job satisfaction actualized? The instilling of satisfaction within workers is a crucial task of management. Satisfaction creates confidence, loyalty and ultimately improved quality in the output of the employed. Satisfaction, though, is not the simple result of an incentive program. Employees will most likely not take any more pride in their work even if they win the weekend getaway for having the highest sales. This paper reviews the literature of motivational theorists and draws from their approaches to job satisfaction and the role of motivation within job satisfaction. The theories of Frederick Herzberg and Edwin Locke are presented chronologically to show how Locke’s theory was a response to Herzberg’s theory. By understanding these theories, managers can focus on strategies of creating job satisfaction. This is followed by a brief examination of Kenneth Blanchard and Paul Hersey’s theory on leadership within management and how this art is changing through time.

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EXPLOITING BUYER POWER: LESSONS FROM THE BRITISH GROCERY TRADE

By Paul W Dobson

As in the United States, increased concentration in grocery retailing in Great Britain has raised issues about the buying power of multiple retailers.Whether, and if so how, it prevents, restricts, or distorts competition at the retail and/or producer level to the public or consumer detriment has been the central aspect of concern in a number of formal investigations by the British competition authorities over the last couple of decades. These include the industry inquiries conducted by the Monopolies and Mergers Commission in 1981, by the Office of Fair Trading (OFT) in 1984 and 1999, and by the Competition Commission in 2000. Retailer buying power has also featured in certain merger cases, most notably the recent Competition Commission inquiry into Safeway and the contemplated mergers with Asda, Wm Morrison, J Sainsbury, and Tesco in 2003.

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Work values of Chinese food service managers

Globalization, with its vast influence on the global economy, society, and culture, has brought significant impacts in its wake. Likewise, the global diffusion of Chinese food culture has occurred during the past 200 years, under the impact of Western capitalism and colonialism (Li, 2001).
Nowadays, Chinese food has become one of the three major popular cuisines in the USA and the UK (Apple Daily, 2001; Retail World, 2001). Chinese flavors and cooking techniques have become commonplace on many menus, and Chinese-concept restaurants sport truly mainstream images. In all likelihood, Chinese cuisine seems to be making more headway on the international palate (George, 2001). Chinese food service operation is a Chinese-dominated profession.

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Malaysia Airlines’ Corporate Vision and Service Quality Strategy

Malaysia Airlines’ vision is to become “An Airline of Excellence”, offering the very best to its passengers in terms of safety, comfort, service and punctuality. This vision was amplified by our
chairman in the company’s 20th anniversary commemorations in October 1992.
The mission has been stated in three main thrusts
as follows:
(1) To make Malaysia Airlines one of the leading
standard bearers for the airline industry in
terms of safety, efficiency and quality of
service.
(2) To develop Kuala Lumpur as the preferred
gateway into Malaysia and the South-East Asia
region.
(3) To make Kuala Lumpur a major cargo
transhipment area for the Asia-Pacific rim.

By: Abdullah Mat Zaid
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Unfeasible biofuel initiative - Malaysiakini

In a few short years, Malaysia has seen its vision of sustainable development through biofuel production turn into a mirage.

MCPX

The government developed ambitious biofuel policies in 2005 when it appeared that the country’s key agricultural product, palm oil, could be profitably transformed into biodiesel. The policies aimed to expand the market for palm oil, improve energy security and create a new export industry.

Malaysia subsidises the end-user prices of petroleum transport fuels so, by replacing a proportion of petroleum diesel with biodiesel, the government hoped to reduce its subsidy burden.

Environmental considerations were a minor motivating factor, with the government seeking to improve ambient air quality and reduce emissions of greenhouse gases through increased biofuel use.

However, the very striving of governments worldwide to encourage the production and use of biofuels undermined the economic viability of the industry. In 2007, global production was approximately 70 million litres of biofuels, converting millions of tonnes of vegetable oils, tallow, grains and sugar cane to biofuels.

A sizeable portion of this production occurred in OECD countries, supported by government incentives that are estimated to have totalled over US$15 billion in 2007 alone. The result was a major surge in demand for agricultural commodities over the past two years, causing dramatic rises in prices, including for palm oil.

High feedstock prices put biofuels beyond the reach of any but the wealthiest nations that can afford to maintain subsidies.

Malaysian biofuel producers were not able to draw on significant domestic government support to maintain their operations.

To date, government support for the Malaysian biodiesel industry has been limited to RM60 million (US$16 million) in low-interest loans in 2004, and RM12 million (US$3.3 million) in federal grants for demonstration projects in 2006. Plans to mandate the replacement of five per cent of domestic diesel consumption with palm-based biofuel (B5) were never implemented.

Hoped-for jobs from the biofuels industry did not materialise and, instead, many biofuel facilities suspended operations in 2008, stranding public and private investments.

Worsen subsidy burden

While 92 biodiesel projects had been approved in Malaysia during 2006 and 2007, a survey of plants in September 2008 revealed that there were 14 functional biodiesel plants, only eight of which had produced biodiesel in 2008 (approximately 130 000 tonnes—less than ten percent of their potential production capacity).

The remainder had suspended operations due to high feedstock prices, and a further four had closed. Eight new biodiesel plants were under construction.

Assuming no further closures or cancellations, total production capacity is expected to reach approximately 2.7 million tonnes in 2009.

Biodiesel is estimated to cost around RM0.67 (US$0.20) per litre more to produce than petroleum diesel when palm oil is RM3000 per tonne and Malaysian Tapis crude petroleum oil is US$115 per barrel.

Replacing petroleum diesel with biodiesel would therefore worsen the government’s subsidy burden, rather than improve it. The Malaysian Government’s consumption subsidies for petroleum fuel have been estimated to total around RM25 billion (US$7.8 billion) in 2008 alone.

Replacing five per cent of petroleum diesel with biodiesel would add RM395 million (US$122 million) per year to this subsidy bill, at the above mentioned prices.

A B5 mandate would lock Malaysia into consuming around 500000 tonnes (approximately 560 million litres) of biodiesel per year, regardless of its cost relative to petroleum diesel. The implications could be expensive.

For example, if petroleum oil prices fell to US$75 per barrel while palm oil rose to RM5000 per tonne (only RM500 higher than prices in March 2008), the subsidy cost of supplying five per cent of Malaysia’s diesel from biodiesel would be around RM2.2 billion (US$675 million) per year.

Crude oil vs palm oil balance

A biofuel mandate would be a retrograde step for the Malaysian Government, which introduced measures in June 2008 to restructure the price subsidy for petroleum fuels. Fuel subsidies increase consumption, discourage more efficient use of resources and absorb national budgets that could be spent on social services (such as health and education).

By moving fuel prices closer towards the international market price, the government generated subsidy savings in the transport fuel and electricity sectors of RM14 billion (US$4.2 billion) in 2008 alone.

If palm oil is cheap relative to petroleum oil, replacing five per cent of Malaysia’s petroleum diesel with biodiesel could generate subsidy savings.

For example, if the palm oil price were to fall to pre-2006 prices of around RM1500 per tonne while petroleum oil prices shot up to US$175 per barrel, a B5 mandate would reduce government subsidies by around RM1400 billion (US$430 million).

Were such circumstances to arise, however, production and blending of biodiesel would be profitable, eliminating the need for government intervention.

The profitability of Malaysian biodiesel production is precarious, depending on volatile palm oil and petroleum prices, and decisions of policymakers both in Malaysia and overseas.

The vast majority of Malaysia’s current biodiesel production is exported, mostly to the EU and United States where domestic subsidies support biodiesel use (including imports).

Malaysian biodiesel is likely to be benefiting from a loophole in U.S. legislation that allows fuel blenders to claim a US$1 per gallon (US$0.26 per litre) subsidy for blending biodiesel (including imports), even if the product is then re-exported (usually to the EU, where the biodiesel can access additional consumption subsidies).

Pressure from the EU to close this loophole could prevent Malaysian (and other) biodiesel exporters from accessing the U.S. subsidies. In the longer term, sustainability standards could limit access into the EU of all but certified biofuels and feedstock.

Despite biodiesel being uneconomic, many countries have supported the development of a domestic biodiesel industry for social and environmental reasons.

There is no evidence to suggest a strong social or environmental rationale for promoting biofuels in Malaysia. While high commodity prices have delivered benefits to some, these have been more than offset economy-wide by rising food prices, which have hit the poor hardest.

Oxfam (2008) estimated that high food prices attributed to global biofuel production have caused 30 to 75 million people to fall into poverty and to jeopardise the livelihoods of 100 to 220 million people.

Forest clearing offsets benefits

The presumed environmental benefits of biodiesel—most notably in terms of reducing greenhouse gas emissions—have evaporated with improved understanding of the full lifecycle impacts of biofuel production.

Biodiesel is commonly considered to be "carbon neutral" because carbon released in burning the fuel is offset by growing the feedstock.

However, the conversion of forest to oil-palm plantations has been has been found to cause greenhouse gas releases that far outweigh any carbon emission reductions arising from the use of biofuels sourced from that land.

The expansion of the palm oil industry in Malaysia has been associated with deforestation, release of carbon from vegetation and soil, forest fires, soil erosion, water pollution and biodiversity loss.

Current domestic production of biodiesel in Malaysia is unlikely to be driving deforestation, due to low production levels.

However, the growing global demand for palm oil—largely due to increased demand for vegetable oils for biodiesel production—has contributed to a plantation expansion boom in Borneo, with associated deforestation and social conflicts.

The Government has said that no more forest reserves will be converted to oil-palm.

However, it is allowing land previously zoned for agriculture to be cleared, including rainforest.

Should the Malaysian Government institute its B5 mandate, 570 000 tonnes of palm oil would be required. This equates to approximately 130 000 hectares of land or three per cent of the current 4.2 million hectares currently under cultivation.

The majority of new Malaysian oil-palm developments are in the states of Sarawak and Sabah.

These state governments have a great deal of autonomy and it appears that, in some areas at least, environmental impact assessments are not being performed rigorously.

Many Malaysian firms are also operating in the Indonesian provinces of Kalimantan and Riau, which have high rates of conversion of forest to oil-palm, and less exacting governance structures.

These fundamental elements of biodiesel production are unlikely to change in the near term. In the meantime, measures to address sustainability issues will become increasingly important in order to supply environmentally-conscious markets.

Such measures might improve the environmental credentials of palm oil destined for OECD markets, but are likely to do little to avoid expansion of uncertified oil-palm and consequent deforestation.

As for the international export opportunities, prospects have diminished since the early euphoria. European Union and U.S. subsidy policies may currently be improving the viability of Malaysian biodiesel exports, but policy changes in the future may limit access for Malaysian biodiesel to U.S. and EU subsidies.

Refrain from intervening

In light of the limited economic, social and environmental benefits of promoting biodiesel in Malaysia, this report recommends that the government refrain from intervening in the market for biofuels, through such measures as offering direct price support or imposing mandatory blending.

The biofuel industry should be allowed to function in response to market signals - consistent with environmental and social standards - so that the industry establishes itself on a sustainable rather than a government-dependent basis.

The government’s current plan to move domestic retail fuel prices towards the world price is commendable, particularly as steps are also being envisaged to ensure that adequate safeguards are provided for the poor.

The government has correctly surmised that biodiesel can only, at most, complement other energy sources. It cannot significantly augment the nation’s energy supplies.

A B5 mandate would only lock in a new form of fuel subsidy that is delinked from market forces, thus creating new inefficiencies in the economy that would likely require painful reform in future years.

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GREGORE LOPEZ is a postgraduate student at the Crawford School of Economics and Government, Australian National University. The above is a summary of this biodiesel subsidy viability report

Index indicates Australia may be nearing recession

SYDNEY, Nov 19 - The outlook for Australia’s economy is its weakest in 20 years, raising the risk of a recession in 2009, according to an index of economic trends.

The annualised growth rate of the leading index, compiled by Westpac Banking Corp. and the Melbourne Institute, fell to 1.1 per cent in September from 3.5 per cent in August. The monthly index measures the likely pace of growth three to nine months into the future.

“This is a very disturbing fall in the growth rate of the leading index,” Westpac chief economist Bill Evans said in a statement Wednesday.

He said it was the biggest monthly drop since the mid-1980s, and marked two straight months in which the index was below the long-term trend of 3.9 per cent.

Evans said the report’s outlook for early 2009 was poor, with the possibility of a recession.

“The growth rate is signaling a very weak growth outlook through at least the first half of 2009,” he said. “It is consistent with Westpac’s view that growth in the first half of 2009 will be barely positive with a decent risk that the first two quarters of growth in 2009 could be negative.”

A recession is defined as two straight quarters of contraction.

Evans predicted that Japan, the United States and most of Europe would be in recession through much of 2009.

For Australia, Evans said he was confident that China’s economic stimulus package would gain traction, commodity markets would recover and confidence would be partly restored.

“Australia’s reliance on Asian growth, which has been a huge liability in recent months, should once again become an asset as we move into 2010,” Evans said.

Earlier this week, the National Association for Business Economics in the United States also projected recessions in some of the world’s major economies. It said the US economy, which shrank at an annual rate of 0.3 per cent in the July-September period, would contract at a rate of 2.6 per cent in the current October-December quarter.

The association also forecast that Japan, Canada, Mexico, Britian and much of Europe would all suffer recessions in the coming months. - AP

Malaysia well positioned as gateway for Islamic finance in Asia Pacific - Malaysiakini

KUALA LUMPUR, Nov 18 – Malaysia is well-positioned as a regional gateway for Islamic investments in the Asia-Pacific region, said Second Finance Minister Tan Sri Nor Mohamed Yakcop.

“We also have strong linkages with the Middle East and other Asian markets to support trade flows between Asia and the Gulf States and to intermediate intra-regional capital flows and investment opportunities,” he said in a speech at the KLIFF Islamic Finance Award 2008 here this evening.

The challenge, therefore, is to further strengthen syariah compliance while continuing with the efforts on developing a wide range of products and services to meet the changing requirements of a highly dynamic and rapidly evolving environment.

These efforts when diligently pursued will enhance Malaysia’s attractiveness and leadership in the global Islamic financial market, he said.

Against the backdrop of the ongoing global financial crisis, he said, Islamic finance was

also clearly providing a more equitable and risk-averse alternative to the conventional approach.

This would contribute towards greater global financial stability, he said.

Given the uncertainties in the financial environment, the global financial community is increasingly seeking new avenues to spread their investment and business risks and to search for new asset classes in markets that provide greater resilience and this is where there is potential role for Islamic finance, he said.

The pillar of Islamic finance lies in the syariah principles which not only emphasise underlying assets but also ethical values, including socially responsible investment, fair trade and good governance and transparency.

“I believe these characteristic of Islamic financing, along with the necessary regulatory framework governing transparency for trading and fund management, have mitigated and helped cushion Malaysia’s financial system from the shocks of the global financial crisis,” he added.

He said the Islamic financial services industry has now emerged as a viable new asset class for investors and advanced to become an increasingly integral component of the international financial system.

Today, the total assets of the global Islamic financial system has surpassed one trillion US dollars, about five times larger than what they were five years ago.

Islamic finance has also been among the fastest growing financial segments, with an estimated annual growth of 20 per cent, the minister said. – Bernama