Wage demands, working conditions, management policy, political goals and social issues.

An industrial conflict or dispute is defined as a withdrawal from work by a group of employees, or a refusal by an employer to allow workers to work.Conflict refers to disputes, disagreements or dissatisfaction between individuals and/or groups. A dispute is a disagreement.

The common causes of industrial conflict are:

Wage Demands

The level of wage and salaries is often the major cause of disputes between an employee and employer. It also refers to a demand by employees for an increase in their wage rate or changes to the way in which their wages are calculated or determined. As well, wage demands may relate to pay rates may need to be adjusted to compensate employees in times of inflationary pressures such as GST and interest rates. Employees are more likely to seek wage increases to maintain their standards of living. Australian unions and workers fight for improved wages.

Working Conditions

Disputes often arise over issues of working conditions and safety at the workplace. Include disputes concerning issues such as leave entitlements, pensions, compensation, hours of work. Employers will need to monitor physical working conditions and provide adequate protective clothing and equipment, first aid facilities, quality working equipment and amenities such as lunch rooms, change rooms and toilet facilities.

Employees will take action if there is a risk to either their or others health and safety.

Management Policy

Disputes are often the result of inadequate consultation by management with their employees. Disputes over changes that management wishes to implement will often cause industrial conflict. Matters include terms and conditions of employment, new awards and agreements, award restructuring, outsourcing and technology acquisitions and structural change.

Political Goals and Social Issues

This usually refers to non-industrial issues, but rather involves wider issues directed at persons or situations rather than those relating to the employer-employee relationship. Employee unions, federations and associations will often undertake actions that are unrelated to the basic wages and conditions of their members.

Perspectives on conflict - unitary, pluralist, radical

• The different stakeholders in employment relations view the relationship between employers and employees from a range of different perspectives.

Unitary Perspective

In unitary perspective employees and employers work together as a team to achieve common goals. The unitary approach in ER assumes stakeholders such as employees and their employers work "hand in hand" to achieve shared goals. It sees the business as a unified entity in which everyone shares the same purpose and is part of the same team. If conflict does arise, it is seen as the fault of poor employee management or communication problems. Unions are rarely needed.

Pluralist Perspective

The pluralist perspective believes that conflict between employers and employees given their different aims and interests is expected at times. It also recognizes that some interests are shared and that decision making should be shared between the competing parties. Both parties need to accept that the differing views can be considered for successful industrial relations to occur. So managers must develop an effective system of communications that allows employees to express their views and to resolve them without damaging the organisation and its performance.

Radical Perspective

Radical approach believes that there are such fundamental differences between employer and employee that it's almost certain that conflict will always occur. Sees conflict in the workplace and reflects the traditional view of "us employees VS those employers". It believes that employers and employees are too opposed to work together.

 

 

• Roles of stakeholders in resolving disputes

 

• Employers: Use grievance procedures and negotiate agreements directly with employees to resolve disputes. Line managers are playing a much greater role today in resolving disputes.

 

• Employees: Use grievance procedures and negotiate agreements with employers with or without unions, on a collective or individual basis.

 

• Employer associations: Provide information and support to employers, assist in negotiations with unions, represent employers in tribunals.

 

• Unions: Represent employees in disputes from the shop floor to the national level, negotiate with management, employers and associations, represent employees in tribunals.

 

• Government organisations: Through their legislation can resolve or even prevent disputes. Government has also established the rules under which the parties negotiate, whether in individual contracts, collective bargaining or in the conciliation and arbitration system. Government also has the responsibility of ensuring that these rules are followed, and stands ready to intervene if an agreement cannot be reached.

 

• Types of industrial action

 

• There are two main forms of industrial action that can be taken by employees or employers; overt action (physical response, highly visible) and covert action (silent and unseen response)

 

 

Overt

Lockouts, pickets, strikes, bans, work-to-rule

 

Overt industrial action is highly visible, direct and aimed at gaining max awareness and well organised by unions.

 

Lockouts

 

Action taken by employers where employees aren't permitted to enter the workplace and are locked out from the workplace unless they agree to follow management order or work as directed

 

Pickets

 

Pickets is where striking workers or a union attempt to gather outside the workplace forming a line to prevent entry of other employees, contract labour or suppliers from entering the workplace.

 

Strikes

 

A strike is a withdrawal of labour from production. Strikes are the most overt form of industrial action and aim to attract publicity and support for the employees case. Strikes occur when employees withdraw their labour in order to enforce a demand or express a grievance.

 

Bans

 

 

Is when employees refuse to form a task that is usually not specified in their employment contract, such as overtime.

 

Work-to-Rule

 

Working to rule is similar to a work ban and involves workers only performing what is contained in their employment contract or award and following the strict terms of their employment contract or award.

 

Covert

Absenteeism, sabotage, turnover, exclusion from decision-making in business

 

Covert action is not openly acknowledged or displayed with no organisation.

 

Absenteeism

 

Usually refers to when employees are unhappy, usually when employees are not being considered by employers in times of dispute, the employees may undertake a system where they do not show up to work, and absent themselves. Employees may undertake mass absenteeism with many being off at the same time, or rotational absenteeism where they almost roster who will be taking time off. Action of this sort disrupts the business but does not stop the employee's income (sick leave), so it is favored by some employees

 

Sabotage

 

 

Employees may take industrial action in the form of deliberately damaging physical items and causing vandalism in the workplace. Damage is done by employees to either the product or in the production of the product. Employees usually take such action to harm or destroy the image of a firm.

 

Staff Turnover

 

 

High voluntary labour turnover (resignation) rates are often linked with absenteeism rates as indicators of conflict and dissatisfaction among employees.

 

Exclusion from Decision-Making in Business

 

Conflict can arise when employees believe that they haven't been given the opportunity to have their say for e.g. not inviting employees to meetings. It occurs when an employer does not involve employees in decisions that affect them.

 

Dispute resolution processes - conciliation, arbitration, grievance procedures, negotiation, mediation, common law action, business/division closure

 

Many firms now try to develop a corporate climate in which disputes are minimised through collaborative working relationships, and by training staff in procedures, policies and guidelines for managing disputes.

 

Grievance Procedures

 

The very first step of negotiating any industrial relations issue starts in the workplace. A grievance procedure is a formal series of steps which are meant to be followed when a dispute arises.They usually start with the first point of contact, such as a supervisor and then to senior levels of management.

 

Negotiation

 

This involves a formal or informal discussion between the employee and employer level in which both parties agree to a mutual agreement to resolve the dispute. Under the process of negotiation parties do not require the assistance of unions or other assistance.

 

Mediation

 

Mediation follows if negotiation is unsuccessful. Mediation occurs when a neutral third person is introduced who helps the parties to find a basis for an agreement that is acceptable to the disputing parties to reach a final agreement.

 

Conciliation

 

Conciliation is the formal means of settling a dispute when it cannot be resolved and may be referred to a third party, such as the AIRC, usually an industrial commissioner with the necessary qualification and skillswho encourages the parties to negotiate their own agreement and brings the parties together.

 

Arbitration

 

If conciliation fails, the matter may be referred to arbitration, arbitration is very similar to the procedures of conciliation, where the independent third party again comes from the Industrial Relations Commission.

 

The main difference here is that the arbitrator considers the arguments of both sides and makes the final decision, which is legally binding on the parties involved.

 

Common Law Action

 

This is where a dispute goes beyond the boundaries of a quick resolution such as conciliation, arbitration; grievance procedures, negotiation and mediation, and needs to be settled in court, where common law applies. Here the Australian legal system will be used if the party believes that the dispute or action has broken the law. This could be a breach in tort law or contract law.

 

Business/Division Closure

 

If the dispute is impossible to resolve it may result in the closure of that division or business.Closure of a division or a business permanently or temporarily may also be a resolution or outcome of a dispute.

 

 

• Costs and benefits of industrial conflict

 

• Industrial conflicts have both costs and benefits although in many cases they are difficult to measure.

 

• The costs and benefits may be financial, personal, social, political and international.

 

 

Financial

 

Costs

 

Cost could include loss of production and reduced productivity due to bans, and loss of wages for the employee if the dispute results in cutting production and work. Firm's reputation may be damaged. The cost associated with legal representation is a financial burden upon the firm.

 

Benefits

 

Benefits could mean better work practices and increased productivity, and for employees through higher wages. It could result with fewer disputes and less absenteeism and labour turnover.

 

Personal

 

Costs

 

Could include a high level of stress for employer and employee and reduced job satisfaction and could result with an increase in absenteeism.

 

Benefits

 

Could mean improved working conditions for employees, including better occupational health and safety, and better more efficient production processes for employers. Greater employee involvement and motivation.

 

Social

 

Costs

 

Tensions and dissatisfaction at work can lead to breakdowns at home, even domestic violence. Employers could suffer from vandalism of the workplace and conflict in the community.

 

Benefits

 

For both employers and employees could be that the conflict clears the air and leads to improved communications systems.

 

Political

 

Costs

 

Cost could include damaged reputations for some politicians and political parties associated with industrial conflicts. Bitterness between unions and government can lead to political conflict

 

Benefits

Could flow to politicians and political parties who present policies that reduce industrial conflict

 

International

 

Costs

 

Nations reputation for stability can be lost and Gain a reputation as being an unreliable supplier. Productivity levels drop increasing costs and making Australian business less competitive against overseas efficient businesses. Furthermore a loss of export income could occur after periods of disruption.

 

Benefits

 

Conflict improves business's international competitiveness presenting opportunities for international expansion and improved production.

The goods have to be supplied from the different supply sources to the demand centers each have a fixed unit cost of transport from each source. Depending on the volume and mix of transport allocated to each sources the cost will vary. However there exists a minimum cost. If the transportations are then allocated by these amounts in appropriate vehicle sizes it will also minimize the fuel costs by using appropriate vehicles and use its full capacity in the current situation of increasing fuel costs.

There are number of models to solve such problems. The easiest and most effective model is the Vogel model of minimizing the transportation costs. It has simple steps and it can be solved using s spread sheet or by an operational research software which uses such models to solve transportation problems where the number of sources and demand. centers are very large.

Steps in Vogel model of transportation problem optimization

Step 1

Determine for each row and column the difference between the cost of each cell in the row and column

Step 2

Determine, which is the maximum penalty or difference and also determine the least cost

of this difference. If there is more than one minimum difference in row or column then allocation with a lower cell is preferred.

Step 3

Delete the column or row where the balance come to zero and delete the column or row.

Step 4

Recalculate the differences again and determine the maximum difference again and allocate the least amount to the lowest cost of the maximum difference if there exist more than one combination differences. Delete the zero columns or row. Repeat the same process until two cells are left over. Finish all allocation and check for arithmetic accuracy.

Step 5

Calculate the transportation cost and verify whether it can be further reduced by reallocations in different quantities and to different cells using the same process.

If the cost cannot be further reduced then this becomes the optimal solution.

If supply and demand is not equal then create a dummy cell and use the same process to minimize the total transportation cost.

This problem also can be solved by linear programming method using simplex method. However, this method is more complex then the above method and it won't be feasible method for all organizations depending on the financial capacity and technical skills needed to use this method. Transportation is a logistical problem for much organization especially for manufacturing and transport companies. This method is a useful tool in the decision making process of the allocation problem in these organizations.

As Vogel method gives the optimum solution is the first stage of the allocation itself and it has the minimum of reallocations to be dome to obtain the optimum solution compared to other methods such as lest cost method and North West method to solve transportation problem it is a useful model or method to solve such problems. As well, it can be easily computerized as it can be converted in to an algorithm. Transportation is an important area of operational research itself and transport is an important part of most businesses this model is very useful for many operations to improve their efficient allocation of resources and there fore minimize cost to be competitive in a dynamic and uncertain market place where cost pressures have to be effectively managed by improving the efficiency of operations and systems.

Applying the macroeconomic variables and there relationship and the empirical evidence from most of the market economies suggests that there is trade-off between these variables and the degree of these variables vary over time and it differs from one country to another depending on their structure of their economy and the role of government in economic affairs. In addition, it also depends on the macroeconomic policies and other reforms they undertake and their effectiveness or otherwise. IN the current global economic environment some macroeconomic instability may be positively or negatively affect volatility and macroeconomic performance due to coupling of the global economic system. For example the currently the mortgage crisis in US is affecting many overseas financial markets and also the stock exchanges in a negative sense. However, some countries are coping well but others are affected to greater degree.

In a theoretical perspective, applying neo-classical or Keynesian theory full-employment in a market economy is not possible and there exist a natural rate of unemployment. If the economic growth moves the economy towards full-employment then it mostly will affect the prices than increase output. That is full-employment and inflation in different degrees

has a trade-off in different countries depending on the labor market conditions and how the labor market works in a particular country.

However, economic growth and high level of employment are achievable but the natural level of unemployment differs to one country to another.

As well, at higher level of economic activity every economy may have a level of inflation depending on the market structure in goods and in the labor market and their flexibility in adjusting to price signals. In monetarist point of view, the inflation will also may be higher due to excessive fiscal deficits and the improper funding of the deficit, which may have a substantial crowding out effect and may raise the interest rate and decrease aggregate demand and increase the level of unemployment and may produce a higher rate of inflation.

In any market economy business cycles are inevitable and it is not possible my any macroeconomic policies to eliminate but a prudent combination of monetary and fiscal policy and also microeconomic reform may reduce the instability and volatility of the business cycles in a market based economy. Ina empirical sense the economic statistics points to the fact all market economies on a historical basis in different degrees has gone through boom and bust cycles whatever the policies they have pursued to maintain macroeconomic stability.

In a theoretical basis it is also possible there may be trade-off between higher economic growth and external stability or balance of payment problems and exchange rate issues.

However, this also varies from one country to another and their economic structure and the financial market efficiency. This happens because when economic growth is higher the imports may increase at a faster rate and the prices of imports may be higher than the exports and the export growth may be slower compared to imports and it is financed

excessively by borrowings than domestic savings. In a global economic system it is also due to capital flows and speculation activity. In this sense at least in a theoretical basis it can be argued that there can be trade-off between external stability and economic growth but in varying degrees in different periods and in different countries depending on their economic structure and the efficiency and dynamism of their market and the level of economic development and the financial system of a country and exchange regime.

As discussed above it is certain there can be trade-off between different macroeconomic objectives and all objectives cannot be achieved simultaneously even though it may be possible by adopting effective macroeconomic polices and microeconomic reform and competition in the economic system and have a fair distribution of income in a country

In designing a study one must consider what questions one must answer, the method of collecting data depending on the type of variable whether it is discrete, categorical or continuous, significant level for the testing of the particular question to be resolved and sample size which can be capable of detecting a meaningful difference. If these are not carefully considered even if a statistical test is appropriately chosen the conclusions derived from the study most probably will be misleading.

In hypothesis testing one must determine whether it is a one sided or two sided test. That is to study changes of a particular variable under examination or increase or decrease. Then one must establish the significance level which is appropriate to the particular study and the field of study. The next step is to select the appropriate test statistic or test statistics and compute the test statistic and determine the degree of freedom if the sample size is small. Then obtain a table value for the statistical test and compare it to the calculated test statistics to derive the p-value which measures the probability the difference or change is due to randomness and the change is significant. If the p-value is

bigger then the difference or change may not be significant given the significant level is chosen correctly.

It is obvious from the discussion it is important to determine the correct significant level to make an objective conclusion statistically. When determining the significant level one must consider how many hypothesizes are being examined, are any interim analysis is planned and how many tests will be ran in total. In the determination of significant level one can also use formal methods such as Bonferroni, Turkey-Cramer, Scheffe's or Duncan-Walker method.

In selecting the appropriate test one must consider the number of samples compared, the independence of subjects in the sample in terms of their relationship or not related and the distribution type. That is whether they are normal or non normal as well as the type of variable studied. The table below will show the appropriate test statistics to be used based on the above consideration matrix.

Type of data number of samples relationship type of distribution statistical test

Binary 1 not applicable binary binomial test

Binary 2 independent binary Chi-square

Test or

Fisher's exact

Test

Binary >2 independent binary Chi-square test

Binary 2 paired binary McNemar's test

Binary >2 related binary Cochran's test

Type of data number of samples relationship type of distribution statistical test

Continuous 1 not applicable normal t-test for mean

Chi-square

Test for

Variance

Continuous 1 not applicable non-normal Wilcoxon

Single-ranked

Test or

Sign test

Continuous 2 independent normal T-test for

Mean F-test

for variance

Continuous 2 independent non-normal Wilcoxon

Rank sum

Test

Continuous 2 paired normal paired t-test

Continuous 2 paired non-normal Wilcoxon

Signed

Ranked

Test or

Sign test

Continuous >2 independent normal One-Way

ANOVA for

Mean and

Bartlett's

Test for

Homogeneity

Of variance

Type of data number of samples relationship type of distribution statistical test

Continuous >2 independent non-normal Kruskal-

Wallis test

Continuous >2 related non-normal Friedman

Rank sum test

If an organizational environment is stable and predictable then traditional organization of work on the basis of division of labor and hieratical structure and bureaucratic practices and process are sufficient to meet the goals of an organization. This because the problems to solve are mostly predictable and the processes and policies if staff is supervised effectively then the organization can meet the goals. In addition, the organization will not face unexpected issues or problems to solve and the speed of change is slow and not dynamic and discontinuous and there fore the operations organized in this sense need not to be flexible and can be rigid and the change process can be orderly in a slow phase. As well, if staff is having a culture in a hierarchical organization they mostly like to have clear instructions from above and they normally don't like to face unexpected problems and don't like challenging work. Therefore in such conditions teams are not relevant and they will be ineffective.

In other words, teams will not be effective if the work is organized in a hierarchal structure and based on bureaucratic control, strict division of labor and the tasks are not complex and can be divided in to manageable parts and the external environment is stable. Teams will not be effective in all conditions and the quality of teams and how it is managed. As well, in all organizations hierarchical structure is applicable to some extent as division of labor is inevitable to enhance productivity and group similar activity so that specialization can occur.

However, due to human factor and co-ordination problem and communication channel gets bigger the organization becomes very inflexible and rigid to respond to changes in the outside environment. This is one of the disadvantages of hierarchical organization.

Teams become effective, if teams are managed properly and staffed with appropriate skills and the objective of the team is linked with organizational goals and the problem needs innovative solutions and open communication necessary for quality improvements on a continuous basis then teams become more effective in these conditions. As well, if the nature of operations are complex and brain storming is necessary and staff are motivated by challenging jobs and like to take part in decision making rather than motivated by money alone then, if teams are built properly and have adequate resources and top management support teams become more productive as well as effective teams.

As discussed above, teams will not be effective in all conditions and the team effectiveness depends on the conditions and the quality of the team in terms of skill, motivation, clear goals and top management support as well the nature of task itself is complex and needs team work to resolve issues as nobody knows every thing of the issues affecting their work. This is one of the reasons some teams fail and some teams are successful in meeting organizational goals.

The main purpose of teams is to solve problems quickly ad to adept to external conditions as soon as possible and meet quality standards and produce innovative solutions to the work problems and issues of improving efficiency of operations and safety as well as quality to meet organizational goals in dynamic and competitive external environment.

If this purpose is not emphasized then the team can meet its goals but not attain organizational goals and becomes dysfunctional at best.

These theoretical explanations are fundamentally based on the way they perceive how the market system works and the nature of its equilibrium at full employment level is the norm or exception given the role of government is minimal. As well, the theories differ in their explanation of the causes and effects they attribute to the business cycle. In addition, the theories differ whether the business cycle is an inevitable outcome of the market economy or it is caused by economic shocks and its temporary nature and the ability of the market system to come in to equilibrium at full employment level given that the government do not distort the market system by inappropriate excessive intervention in to economic affairs.

The Monetarist and Neoclassical Theories of Business Cycle.

 

In the monetarist theory of business cycle the basic cause of the business cycle is because of excessive or restrictive money supply by the financial authorities and is caused by economic shocks, which are caused not by economic system failure but by external factors and excessive political and social policies of the government. That is, the business cycle is not caused by inadequate aggregate demand but by money supply in the economy and excessive government intervention or in appropriate polices to manage the economy.

In essence monetarist theory explain business cycle by in appropriate monetary policy and other external factors and economic shocks and it is temporary and the rational behavior of the market will automatically move the economy towards full employment and if government intervenes it will cause excessive inflation and will make the full employment unachievable. In addition, in their view it is also caused by rigid labor market practices and inflexible wage fixing systems and Union power in the labor market and imperfection and anti- competitive practices in the goods market. In summary, according to monetarist the business cycle is not inherent weakness of the market economy but is caused by monetary factors and excessive government intervention in the economy or inappropriate economic and social polices of the government and rigidity in the labor market and the role unions play in the labor market as well as imperfections in the goods market by anti-competitive practices and over regulation of business activity by government.

In their view, in all circumstances fiscal policy to boost aggregate demand by government expenditure or by tax credits will not work because it will affect prices not output and increases the rate of inflation at least in the medium term even temporarily it increases out put for a short time. The solution to business cycle is to have adequate money supply and control money supply by interest rates or some control of money supply by prudent supervision of the financial system and undertake microeconomic reform so that the market is close to a more competitive market system and make the system to become flexible to adept to changes in the market or adept to economic shocks faster as possible and to reduce government intervention to a minimum.

Keynesian and Neo Keynesian Theories of Business Cycle

In Keynesian theories of business cycle the business cycle is caused by inadequate aggregate demand because of lack of investment by the private sector and lack aggregate consumption within the economy as well as in an open economy by exports as imports.

In their view the aggregate demand function is the cause and money supply is an effect.

As well, the economy can come into equilibrium less than full employment because of wage stickiness that is wages do not adjust faster down wards compared to increases even without union power in the labor market. In addition, imperfection in competition in the market is reality and government regulation is necessary in the goods market to control monopoly and oligopoly practices. In addition, market failure is caused where the private cost and social cost diverge and in this respect government intervention is necessary. In Keynesian view, in a economic sense there is legitimate grounds governments must intervene in a market economy at least in the circumstances of deep recessions where if no government intervention the market mechanism will take a longer time to move towards full employment and if not resolved in a short to medium term it will cause social and political instability and may be threat to a market system because of high level of unemployment in a deep recession. In Keynesian and Neo Keynesian theory of business cycle if market is allowed to work in itself without any government intervention in the economy it will grow and the market is dynamic and adaptable however it can come in to equilibrium less than full employment frequently and may also can cause deep recessions, which may take a longer time to be resolved by market mechanism alone. In their view, the business cycle can be stabilized by appropriate fiscal and monetary policy and they are effective to reduce business boom and busts and reduce the possibility of unacceptable levels of unemployment.

If monetary policy is used alone according to Keynesian theory it will take time to work in the economy and it may not be effective to solve deep recessions and fiscal policy is important tool to reduce boom and busts to stabilize the economy.

Marxist Theory of Business cycle

In the perspective of Marxist theory of Business cycle the boom and bust cycle is inherent weakness of the market system. It is caused by its own mode of production and

private ownership and profit motive. No policy whether monetary or fiscal policy will correct this inherent economic weakness of the capitalist system or the market. In their view, the market in the modern capitalist economies do not work because of the concentration of wealth and the law of accumulation in capitalist system do not allow to have adequate aggregate demand because it causes unequal distribution of income and purchasing power and produces overproduction and deflationary tendencies. They also point to the fact the labor theory is a regulator of the system and there fore if capital is used and labor is saved then the rate of profit will come down because the profit come from surplus labor and there fore investment levels even though they can mitigate this over a period of time however not indefinitely as this process will cause boom and busts which are more frequent and deeper and if markets are not overthrown by labor then it will continue the boom and bust indefinitely. That is monetary and fiscal policy is ineffective in solving the boom and busts of market economy because it is inherent to the capitalist system weaknesses.

Effectiveness of Business Cycle Theories in Context of Empirical Evidence

In all market economies boom and bust is a reality. However the boom and bust differ in its frequency and the level of boom and bust. In addition, all countries have not used one policy measure alone to stabilize the economy and the effectiveness of policies to stabilize the economy is not always effective. This may be due to in appropriate policy mix and the time lags they take to work in the economy and the economic condition changes and it may stabilize but destabilize further the economy. This shows that fiscal or monetary policy alone will not work in all market economies and different mix of policies work in different conditions in terms of their specific market conditions in terms of the characteristics of the labor market industrial structure and level of competition and degree of market failure in their own economic systems.

However, it is also evident from the recent experience of the market economies boom and bust cannot be completely eliminated by the functions of the market and governments have successfully used fiscal policy with monetary policy and other microeconomic reform to some extent indicate fiscal policy at least to solve deep recessions is an effective tool and monetary policy in itself have been proven not effective in these circumstances. However, there is evident from the experience of Germany particularly the fiscal deficit may produce inflation and fiscal policy as predicted by monetary policy if used not prudently may increase boom and bust cycles and also can produce stagflation. In addition, in the current global economy economic shocks can affect many economies in a shorter period of time and markets may not be able to correct all shocks in it self and some regulation is inevitable to have economic stability. In this context government in varying degrees must playa role to control or manage business cycle to acceptable levels of economic activity. In addition, in reality most market economies are mixed economies and government playa role in economic activity even though market plays a dominant role. It may due to historical, cultural and social factors.

However, it is also possible government intervene in the economy to reduce market failure and also where the private sector is impossible to provide public goods where the risks are higher and government can only provide such goods and services.

Even in the current economic climate of market based policies in Western Europe Social security is not totally abandoned because in a market economy conflict in distribution is inevitable and political stability is necessary to protect vulnerable groups with the society to reduce the negative impacts of the working s of the market systems. In addition, public education, public health and environmental protection are a norm to varying degrees in most of the western countries even in the 21st century.

This indicates, at least in some economic activities government has a role because private sector cannot provide it because of the nature of product or service as well as to the restriction in resource capacity and duplication, which is not economically efficient compared to the government at least in some circumstances.

It cannot be denied government intervenes in the economy due to political and social reasons or it is historical and cultural. However, it is also true that government has to intervene on economic grounds to correct market failure or to reduce unemployment due to deep recessions where the market alone will not be able to solve it at least very quickly and the uneven distribution of income it produces because of its workings which may produce political instability.

In summary no theory of business cycle is completely explain the complex issue of business cycle. However, the theories together at least to some extent explain the dynamics of business cycle. It is certain business cycle cannot be avoided because the empirical evidence shows that it is inevitable in a market economy. If one theory is used to formulate policies to manage business cycle then it is evident from the experience of most Western Europe that it will lead to increase the instability than control the instability or boom and bust. Ideologically driven explanation will lead to disaster than a solution. It is certain that market will not always even without intervention will produce full employment all the time as evidenced by the history of US economy, which has the most minimal government intervention in a market economy. That is, based on evidence. Mix of monetarist and Keynesian theories and some insights from even the Marxist perspective is essential to understand the issue of business cycle to formulate effective polices to manage business cycle on the basis of empirical evidence as discussed above.

Combine code of Corporate Governance and the flexibility to depart from the code

In general the combined code of corporate governance best practice is only the guidance and the listed companies can differ in its corporate governance actions and policies if the shareholders insists or if the circumstances of the company in regards to its size, operation and complexity requires a different corporate governance practice from the combined code and it must be spelt out in the Annual report the reasons for the departure or the full compliance of the code by UK listed companies.

As mentioned above to evaluate whether Abbots Group plc complied with the combined code as set out in section 1 one can examine the annual Report published recently. In UK Listed companies has to have a statement in relation whether they have complied with the combine code of corporate governance or if they have departed from the code the reasons for the departure from the code of best corporate governance provisions.

In critically perusing the Annual report for Abbots Group plc 2006 page 31 to page 35 which contains the information of corporate governance practices relative to directors, chairperson, non-executive directors duties, board meetings, director's appointment procedures, non-executive directors appointment procedures, performance evaluation procedures, independence of non-executive directors, setting up of Audit committee, Nomination committee, Pay committee, reporting of board meetings in the Annual report, relationship with shareholders, performance evaluation of directors and chief executive and the board itself and processes of internal control and risk management by risk management committee and their independence shows that in general Abbots Group plc has complied with the combined code of corporate governance setout in section 1 because in general the provisions of the code is applied in all the areas of the corporate governance as mentioned above. As well, the director's report regarding the statement in the Annual Report relative to the compliance of the code states that it has complied generally through out the year 2006 with the code. However, the statement also states that the Chairperson of the board and the chief executive officer of the company work in association and according to the code Chief Executive must not act as chairperson. The reason they work together the opinion of the board is that the chairperson has substantial shareholdings in the company and they believe that the chairman's interest is aligned with the other shareholders. As well the chairperson has certain strategic responsibilities given the shareholding interest it is reasonable the chairperson works with the Chief Executive officer. In my view this reason is rational as the company shareholding of chairperson is substantial and if it aligns with other shareholders he may act in the best interest of shareholders and may motivate the executive to make decisions which will maximize shareholders value in the long-term a going concern and minimize his decision making and behavior to maximize himself interest and not acting in the best interest if it is due to the fiduciary situation of the directors in UK as the agency theory is to some extent applicable given the theory of firm is embedded on the agency theory in UK historically.

In addition, in the annual Report 2006 of Abbots Group plc the pay of executive and non executive directors are monitored and it depends on their objective evaluation of their performance and the pay packages are designed so that the directors

and non executive directors do not act to prepare financial statements and other estimates and application of accounting principles and accounting methods to manipulate the performance to cover the actual economic performance of the company and a short-term view of the company's strategic direction. This satisfies generally to a greater extent that the combine code relating to the determination of directors pay and the pay to non-executive directors of the company and can be argued the company has complied with the code relating to directors and non-executive directors pay which is not excessive compared with other companies and linked with the performance evaluation on a regular basis having rigorous objective criteria.

The main objective and the purpose of the combined code of corporate governance best practice is to have a board which acts in the best interest of the company as a whole and manage risks and have sufficient processes and systems to protect the assets of the company and to have a trusting relationship with shareholders and above all to maximize the shareholders wealth in the long-term the company being a going concern in the future. That is in other word the board must act in the best interest of the company and not maximizing rents for themselves in the same time eroding the value of the company in the long-term and not maximizing shareholders wealth particularly in UK as the shareholders interest and as owners are paramount as opposed to other theories of corporate governance like the stakeholder theory or stewardship or information theory even though they may be relevant to some companies particularly given the size and complexity of operation and external regulation in the area of corporate governance.

As discussed above on the basis that the Corporate governance practices of Abbots Group plc has sufficient monitoring of directors behavior to act in the best interest of the company and to the extent that their practices and processes enable the board to have a

strategic direction to maximize shareholder wealth in the long-term and not have short-term view which jeopardize the survival of the company and growth of the company as a going concern and the objective of the combined code is similar even though the

practices slightly vary from the combined code, the objectives of the combined code and the governance practices of the Abbots group are similar. As well, the Annual report highlight that they have applied the code in the governance practice throughout the year 2006 highlight that Abbot group plc has to a greater extent complied with the code. As well the Abbots group has policies and practices in a strategic manner to have resources allocated to satisfy other stakeholders like the community, environmental groups, the government and legal requirements of Company law and other legal regulations, employee health and safety issues and value the employees. That is it maximizes shareholders wealth in the context of its social responsibility and in an ethical manner given its operating circumstances in terms of its size and the nature of its operations and its affect on society as a whole.

Because of the above discussion, it can be argued that the Abbots Group plc given its unique circumstances and operating environment its code of practice and corporate governance actions and policies comply with the combined code of best practice even though it departs in some respects from the code as the code do not recognize other stake holders interest in formulating its strategic plan and implementation and concentrates only on the share holders interest and assumes it meets the needs of other stakeholders.

Evaluation of Abbots group plc Earnings Management tendencies given its corporate governance and practices as well of its external private and public environment.

The earnings management arises in the use of discretion of the management in the selection and application of accounting methods in such a way to distort the real, economic performance of the company and distort earnings and therefore in effect the value of a firm. It can be the result of opportunistic behavior of management to gain advantage while sacrificing the best benefit of the company and can arise because of unethical practices of the management not monitored by an organization and do not detect earnings management by the capital market or by the internal and external auditors. It also cans arise because of the nature of ownership of a firm the power structure of the board and the independence and ethical practices of individual managers and the sub committees of organizations corporate governance practice.

Abbot Group plc is in the energy industry. The environmental issue is vital for the industry due to the fact the global warming issues affect this industry than any other industries. From the Annual report 2006 it is certain that Abbot Group plc has a policy to protect the environment which is recognized by the top management and by the non-executive managers and the lower level management within the company. That is the management has a long-term view to maximize profiting and not a short-term view on a strategic perspective. Therefore it is not practicable. the directors or other non-executive directors will have an opportunistic way in applying the accounting standards and have estimates in a fraudulent manner and it's this limited occurrence fact. In effect as mentioned above the corporate governance of Abbots Limited given its size, complexity of operations and its recognition of social responsibility beyond legal restricts the management recognize ethical practice within the organization it can be argued its corporate governance is based on stakeholder theory of corporate governance

than the agency theory of management. It not only recognize shareholders but also other stakeholders in planning its operations on a strategic direction of therefore there is less

likely hood of earnings management and the possibility of detection of earnings management practice in a fraudulent manner or misapplication of accounting standards are very high by the internal and external auditors as discussed above.

In addition, in the Annual Report 2006 the external auditors have stated in their audit report that in their view Abbots Group plc has applied accounting standards consistently and have produces estimates applying the accounting principles with sound judgment based on facts and recognizing the rigorous external auditors by the company it can be argued that the earnings management by the directors will be monitored effectively by the external auditors even if they have some tendency to embark on discretionary earnings management practices which are fraudulent and misleading in preparing financial reports. In addition, it seems the independence of auditors are rigorously assessed by the corporate governance practices therefore there is less likely hood that earning management by the directors of the company will not be detected by its corporate governance regime. On this basis it can be said that Abbot limited probability of earnings management practices in preparing its financial report is very slim and it happens it may be detected by its corporate governance regime.

As mentioned in its Annual Report 2006 Abbots Group plc has an independent audit committee, nomination committee and pay committee and they recognize the skill and the quality of its directors a non-executive directors and rigorously apply an objective criterion in appointment of its directors and non-executive directors and they rewarded because of their performance in meeting the company objectives and the pay packages are designed so that it give incentives for management not to embark on short term profit maximization but a long term view of the company. Given the skill and quality of non-executive director's ethical behavior in audit and other committees it can be argued that earning management in preparing financial report is

very unlikely and even if they do there is more likely hood given the quality of audit committees and risk management practices will detect the earnings management practices by the directors and managers.

In UK the Company law is enforced effectively and therefore there is a strong deterrence for the directors of Abbot Group plc not to act in the best interest of shareholders as a whole and in the current environment institutional shareholders pay a major role in public company shareholdings in UK. Given these external financial regulation and enforcement there is less likely hood of earnings management practice which is fraudulent and misleading is very unlikely. In addition the listing rules of public companies are very stringent and they are enforced effectively for public companies. This is also another factor which has the effect of minimizing earnings management practices by public companies in UK in general.

Literature review on earnings management

Laing, D and Weir, C.M in a Research essay “Governance Structures, size and corporate performance in UK firms” has highlighted that the number of non-executives in the board will not improve corporate performance but the skill and quality of non-executive directors will improve corporate performance of UK firms in all types of firms whether they are small or listed public companies in UK firms. In addition, the skilled non-executive directors in audit committees and other committees have the potential to improve corporate performance of UK firms. As well, this article also highlighted that the entrepreneur leadership of the directors also will enhance corporate performance of UK firms. This suggests that if the skill of non-executives in the corporate governance structure is good quality then the likely hood of earnings management will be less as argued above.

Cartwright, W & Craig, J. L in an article about sustainability and the relationship between sustainability and corporate governance and business actions highlighted that

the corporate governance based on more than shareholder interest but take into consideration earth also as a stakeholder will enhance sustainability in an environmental perspective and maximize shareholder welfare in the long -term and the business actions will not be because of short-term decision making and strategic direction of the firm. That is it can be argued if Abbots Group incorporate sustainability in its corporate policy its short-term planning of earnings profits will be less and therefore less likely hood of earnings management by Abbots group. This substantiates by earlier argument based on the facts of Abbots groups' Annual report 2006 corporate governance report.

In summary Abbots Group plc has an effective corporate governance practice which consider its unique environment considering, quality of its directors and non-executive directors, independent directors in the board, rigorous training of non-executive directors to upgrade their skills to meet challenges faced by the company, best practice of corporate governance prescribed by the combined code of corporate governance, effective audit, nomination, pay committees which are independent and mostly avoid conflict of interest, non-executive directors in the board to monitor directors performance regularly and have a trusting relationship with all shareholders and particularly with institutional shareholders, have a pay package that encourage to make decision by the directors on a long-term basis. Ethical practices encouraged by the top management and monitored by audit and other committees which are independent, corporate governance which recognize environmental issue and social responsibility beyond the legal requirements and a culture within all levels of management and given the UK company law regulation and enforcement as argued above based on logical basis based on facts it can be argued that earning management practices by directors and by other managers are very unlikely in preparing its financial report in general and the earnings reported by the management

It is an often debated topic, as to the responsibilities placed on today's computer programmers and their companies. Not only are the specific responsibilities themselves debated, but also with whom particularly those responsibilities lie; of the programmer and the supervisor, with whom does the blame rest when a program goes wrong? If restrictive deadlines contribute to the release of an unpolished product, are failures in that product the responsibility of the project manager, for poor time allocation, or the responsibility of the software producer, whose thirst for profit has caused the rushed release? Must the programmer account for the errors, even when they are the result of unrealistic expectations from higher up the corporate food chain? Software development is said to be a highly collaborative enterprise; does it follow that the responsibility also rests with the collective?

It is indisputable that we are living in the technological age. The Computer Industry Almanac reports that by 2007, some 661 million personal computers will have been sold worldwide (approximately one computer for every six people), and the United States will have 831 personal computers in use for every 1000 people in the population.1 In addition to the stand-alone personal computer, so many other house-hold items and critically important systems utilise computer technology; dishwashers, microwaves, televisions, mobile phones, stereo systems, automobiles, aircraft, financial facilities and administrative systems all contain integrated computer circuitry, and all need to be controlled by some sort of software. With so many every-day and important items relying on computer processing in one way or another, it is difficult to see how the decisions made by software developers could not impact the community at large, and in a wide variety of ways.

Because of the possible consequences of software developers' decisions, it is important to establish a set of ethical standards, a code of responsible conduct and appropriate legal protections for programmers and their colleagues. It is through these measures that the responsibilities of developers can be set out, explained, and the necessary powers implemented to enforce the responsibilities and ensure they are respected. In the design of content and purpose, the process of programming and associated practices, the targeting of audience, and the provision of appropriate documentation, software developers have to be in constant awareness of their social responsibilities, paying attention to the maintenance of their ethical standards in terms of legal, moral, and non-discriminative software practices. This essay aims to explore these social and ethical responsibilities, how they pertain to software development decision-making, and how these decisions can affect communities.

The term "ethical" can be defined as “pertaining to or dealing with morals or the principals of morality; pertaining to the right and wrong of conduct.”2

The "ethical responsibilities of software developers" can be taken to mean the body of moral philosophy and code of conduct expected to be followed by those involved in designing and engineering computer software.

In our society, the definition and enforcement of these responsibilities is predominantly carried out through the implementation of laws.

The broadest and most significant body of software development law, although not exclusive to software development, is that of copyright. This is the notion that the creative pursuits of individuals always remain the property of the creator or creators, and that those individuals have the right to control how and by whom their creations are used. In the specific software engineering context, copyright is “the legal protection of computer programs against illegal copying such as piracy and provides the software developer with the legal right to control the use of their product.”3

As mentioned, piracy4 is outlawed by copyright, but other forms of intellectual property theft, such as failing to obtain author permission before copying significant portions of program code or modifying a section of a program are considered in breach of Australian copyright laws, as well as putting one's own name to another's work (plagiarism).

It should be noted that the above unlawful actions are usually also covered in the individual codes of conduct of software development companies and corporations. The Association of Computing Machinery recommends in its suggested Code of Ethics and Professional Practice5 that software engineers are to “report to the client or the employer promptly if … a project is likely to fail [or] to violate intellectual property law” (clause 2.06), not to “knowingly use software that is obtained or retained either illegally or unethically” (clause 2.02), and to “identify, define and address ethical [and legal] issues related to work projects” (clause 3.03, applicable in that it asks software engineers to be mindful of ethical practices and act if they believe a significant legal or ethical issue is at hand). The overall tone of the ACM Code is that software engineers always balance the interests of their clients and employers with the public good, and act if they believe public interests are in jeopardy.

However, the law has had to play catch-up with respect to software copyright. With the rapid increase in personal computer ownership in the 1980's and 1990's, and the introduction and major success of the world wide web over a similar time frame, software producers found they were catering for a market the size of which was unthought of in the early days of highly specialised software design in the 1960's. Whereas before, software applications were usually created specifically to run on individual machines, and for specific, often technical purposes, new applications were being designed for the modern home, and could be run and copied freely on home systems. The protection of programmer's intellectual property became increasingly important, as the internet and other forms of data transfer, and widespread cross-platform compatibility fuelled a rapidly-growing piracy endemic.

As a result, software developers took it upon themselves to include software licences in their applications, which act as contracts between the companies and end-users, stating the legal uses of the software in terms of the numbers of simultaneous installs allowed, rules regarding backup copies and covering the developers' rights to distribute the software for profit (among other conditions).

Despite international law having received vast updates with regard to software copyright, and many of the clauses included in program licenses now being unnecessary because of the changes, developers are reluctant to remove them from their releases. This is likely because the independent licence agreements can be used to give developers extra power over their software and their users, such that they may even try to give themselves privileges against the laws of their nation's constitution. These privileges may be as extreme as random search and seizure rights, but are more often subtle over-rides to normal exceptions in copyright law. The US court case of Triad Systems Corp. versus Southeastern Express Co. (1995) uncovered one such exploitation of licenses in order to impose terms in favour of the software developer, reinforcing their monopoly and making it difficult for competitors.6

Triad Systems supplied pre-built computer systems for the management of auto retail and service centres, and also maintained the systems they built. Southeastern offered similar maintenance services for Triad systems, but Triad claimed that by using the system software in their maintenance and repairs, Southeastern technicians were temporarily becoming additional unlicensed users of the systems. Thus, the technicians were in breach of the software's licence agreement, which prohibited such unlicensed use of the software. In reality, Triad otherwise had a monopoly over the maintenance of their computer systems, and wanted the profits being directed into Southeastern. This muscling out of competitors through excessive copyright control is now catered for in US law (unfair domination and monopolisation of any market has always been against US trade law), but at the time, courts ruled in favour of Triad.

The morality and ethicality of such practices can be called into question, as can the general limitations that software licenses may place on the availability of software to the less fortunate members of society.

It can be argued that the essential purpose of copyright law is to encourage creative diversity in markets of creative expression; if the original creations of any member of an artistic profession could be freely copied, modified and released as a new original work, then there would be little incentive for others to conceive of and construct new creative works - the works considered the pinnacle of the separate arts could be freely copied, and there would be no need for different artists to create competing works. Creative arts of all kinds would be greatly depressed.

Software development, being its own creative pursuit (in a practical sense, if no other), and experiencing as rapid growth and competition as any other technological market, needs copyright protection to maintain this competition and creative diversity - that which ultimately leads to the wide range of differing solutions to similar problems, and thus to those that are more or less appropriate for individual situations.

If copyright law is seen in this light, then the use of its principles to stifle competition (as in the case of Triad and Southeastern) is clearly immoral and unethical. The use of licence agreement documentation (provided with software) as a means to apply copyright law in this way can be seen to be similarly immoral, if the intention is in opposition to the interests of diversity in the software development industry.

It has also been argued that software licenses, specifically those that dictate specific numbers of users and simultaneous installs on multiple machines, are discriminatory towards the peoples of developing countries and those less fortunate in developed countries, in that they create barriers to the spread of technology amongst the world community. For example, a charity organisation wishing to provide families experiencing financial difficulties with recycled computers may be unable to provide such systems with licensed copies of operating system software, due to the prohibitive costs of purchasing a licence that would allow the virtually unlimited users that are implicit in such a project. Similarly, a developing country may be advantaged by access to computer software, but the costs of providing suitably wide-spread access to the citizens of that country are such that it is much more practical to spread software in breach of licence agreements. In both cases, the benefits for the community might be seen to outweigh the illegality of the means by which those technological benefits are gained.

It is clear that the decision by software developers to include licence agreements in their software has affected the community; before copyright law had been updated to cater for the requirements of the emerging software market, the licence agreements aimed to protect the creative diversity of the industry and allowing alternative solutions to problems to be developed, ultimately providing the consumer with greater choice when it came to finding a software solution suitable for their specific situation. However, the potential cost of licensing can affect the world community's opportunity for technological equality and advancement.

Social and ethical considerations are implicit also in designing the content and purpose of software. In deciding what to include in software, and how that software may be used, developers must be wary of excluding minority groups, and must constantly evaluate the ethicality and possible social effects of their work.

An example of software built for questionable purposes is the relatively recent emergence and popularity of online file-sharing programs. These applications allow users to download directly from other users' computers all manner of computer files, and upload files of their own to others. Such programs include Napster (1999), Kazaa Media Desktop (2001) and Limewire (2001).

Napster, being one of the first major successes of peer-to-peer file-sharing (whereby users download from other users, rather than centralised servers), is often thought of as the originator and catalyst for the medium's current popularity. However, Napster was originally perceived as a program ideally suited to sharing copyrighted materials illegally, specifically commercial music and film.

In a series of infamous legal cases, the creators of Napster were accused of encouraging illegal piracy of commercial music. In July of 2001, the entire network was shut down in order to comply with a court order that Napster was to take action to prevent illegal copyright breach by its users.

The implementation of software that allowed users to, often unwittingly, illegally copy music from others is an arguably unethical decision. Many believe that the creators of programs like Napster should incorporate some sort of protection against such activities. Even if the intended purpose of the software is not to encourage distribution of pirate media, the design of the program to facilitate this distribution may be deemed an irresponsible act. Although some debate surrounds the exact effect of illegal file-sharing on the artistic industries, it is estimated that annual worldwide record sales dropped from US$38 billion to US$30 billion between 1998 and 2003, with falls of 30% and 50% in Canada and Denmark respectively7. If these declines are attributed to an increase in illegal music piracy through file-sharing networks, then the software engineers responsible for developing the file-sharing applications, by deciding to include no safeguards against copyright infringement, are also responsible for the economic damage sustained by the recording industry.

Kazaa Media Desktop was part of the second generation of file-sharing programs developed8, and was notorious for the inclusion of bundled adware and spyware.

The purposes of adware and spyware are themselves somewhat dubious. As defined by Webopedia, spyware “covertly gathers user information through the user's internet9. Adware is a sub-category of spyware that gathers information specifically for the purposes of providing targeted advertising to the user, usually through pop-up windows, web banners and conspicuous off-site links. Covertly monitoring user activity is widely seen as a threat to privacy, and software designed for this purpose seems similarly threatening. The decision to produce such software, and to stealthily include or "piggy-back" the monitoring software with other applications can affect a feeling of insecurity and distrust of the computing industry amongst the general community. To return to the ACM's Code of Ethics and Professional Practice, principle 6 states that “software engineers shall advance the integrity and reputation of the profession”, and it is clear that invading the privacy of users by collecting information about their usage habits (especially without their knowledge and consent) is at odds with this section of the Code.10 connection without his or her knowledge”

The inclusion of such "malware" (malicious software) without explicitly informing the user of the precise function of the programs through some form of program documentation could also be considered highly irresponsible conduct. In the case of Kazaa, the licence agreement the user accepted during installation merely stated that “Kazaa is a free download which is supported by advertising partners and applications”, and that "Cydoor" (one piece of adware responsible for the display of targeted web banners) “shows banners and pop-up ads within Kazaa”. The documentation failed to advise that the Cydoor software monitored browser habits, and used the information to serve the targeted ads.11

Apart from specifically stating the exact purposes of a piece of software, ethically and socially responsible software user documentation should also include information on the technical demands of the application, the safe and intended use of the application, and be in a non-discriminatory format. For example, the multi-cultural nature of today's society makes it necessary for multi-lingual user documentation to be at least accessible (i.e. electronic or internet versions), if not provided by default. Of course, only providing on-line versions of such documentation excludes those who do not have internet access, and so is still a partially discriminatory option.

System documentation needs to be similarly thorough. In the maintenance and modification of existing computer systems, it is the system documentation that directs software technicians as to the structure and form of the software, which may not be (and in most cases are not) the same individuals that built the software. Thus, software developers must provide adequately detailed systems documentation, so as to allow the efficient and effective tracing of program errors, both during development and in post-development; there is a social responsibility to create easily maintained software (so as to reduce the frequency and inconvenience of maintenance work), and thorough systems documentation is implicit in meeting this responsibility.

As has been mentioned, software development is a collaborative art, and commercial software products are usually the result of some years of intensive work by large teams including managers, supervisors, researchers, analysts, designers, writers, programmers, testers, lawyers and marketers. Each member of the team is individually responsible, to varying degrees, for the detection and prevention of possible social, ethical, and legal issues arising from computer software.

Analysts, in identifying the initial requirements of computer systems, must be alert to the ultimate intended purpose of the systems they describe. The designers of the final product must constantly question whether the features they are incorporating are ethically sound.

Ergonomics is “the study of the relationship between people and their working environment”.12 Also on a software development team are ergonomics consultants, with the responsibility of deciding on and developing the interface through which a user interacts with the computer system. In developing software, it is important to take into account certain ergonomic design principles, so as to make the new system as intuitive, easy to use, and physically safe as possible. Repetitive strain injuries can be sustained from the improper use of software (by not taking regular rest breaks, and also through poor postural practices, eg. poor wrist support when working with mouse and keyboard input), and it is the job of ergonomics consultants to minimise the risk of computing-related injuries.

The two factors that contribute to the likelihood of repetitive stress wrist injuries are the number of movements required to perform an action, and the effort needed to perform each action. A program that makes use of consistent screen-design principles allows the user to predict the location of features, minimising superfluous searching and increasing ease-of-use. By implementing keyboard shortcuts for common functions, the effort involved in performing repetitive actions may be reduced (continued use of the keyboard requires less effort than changing between keyboard and mouse input), and so cater for the second factor contributing to repetitive strain wrist injuries.

RSI can also refer to complications like eye strain, caused by long sessions of uninterrupted computing. Ergonomics consultants can recommend the implementation of uncontrolled cinematic scenes in video games, for example, to help force breaks in play and reduce wrist strain, but also interrupt otherwise lengthy periods of intensive concentration on the computer monitor and so resting the user's eyes.

The decision by software developers to consult with ergonomic specialists helps in the design of software that will be easy and safe for public use. If an ergonomically dangerous program was released onto the market, the physical health of the individuals who used that program would be endangered, so software developers must be socially responsible for the welfare of their users in this respect.

But perhaps those with the greatest responsibilities are the software programmers and testers. It is inevitable that with demands and deadlines being imposed, errors will creep into software code. The critical nature of some computer systems means that these errors can be life threatening and economically catastrophic. Although it is a software tester's entrusted job to detect and report programming errors before a product's release, there comes a point when it would be unreasonable to ask a tester to keep searching a program for bugs; the same program can only be inspected for so long before it is almost certainly safe to assume that it is bug-free. Ideally, programmers would be exceptional human beings, incapable of programming errors in the first place. Unfortunately, it is human nature to make mistakes and learn from them, and so it is the tester's responsibility to ensure commercial products are as safe and reliable as possible.

A recent example of a computer system failure causing wide-spread inconvenience and economic loss occurred when Atlanta's Hartsfield-Jackson International Airport was unnecessarily evacuated on April 19th, 2006.

The baggage-screening security systems of the airport are designed to super-impose suspicious articles on X-ray images of passengers' bags at random intervals, in an effort to keep security staff on alert. The screening system is supposed to notify staff that the event is only a test scenario a short time after the doctored image appears on screen. On this particular occasion, a test scenario took place, but the test notification was not displayed. Subsequently, a full evacuation was carried out while some hours were taken searching for a suspicious bag that didn't exist. Widespread flight delays across North America ensued, and considerable economic loss resulted.13

In critical software of the kind used for airport security, it is certainly very unexpected to encounter a software malfunction like this one. Testing of the software's features by the developer would be expected to pick up an error of this sort, but obviously in this case the tester/s did not encounter the problem. It is not necessarily fair to condemn the software's developer because of the presence of the error, and yet their decision to release the software as reliable and safe for use in airport security applications led to the mass inconvenience of thousands of patrons, delays on a national scale, and financial losses to the aviation industry for the approximate two hours the airport was evacuated.14

But while software developers are responsible for providing safe, reliable, functional and lawful software, there is no escaping that some onus must remain with the users of software. Even the most reliable software will behave unexpectedly to someone unfamiliar with its operation, even the most lawful of software can be modified by the end user (against the instructions of licence agreements) and used for unlawful purposes, even the most functional software can only provide solutions for the problems it was designed to solve.

Software developers can be as amiable in their design of software as can be conceived, but in a technologically reliant world, where the internet provides almost countless arenas for the expression of user opinion and the transfer of user customizations, and fundamental social infrastructures are based on ever-aging computer technology, the users are always ultimately responsible for their own demands of software, and their own uses of software. Software developers can affect many areas of the community, in many different ways through the decisions they make, but in the end they can only ever be responsible for their own actions, and not the actions of others.

Chain Of Command

The classical-scientific management structure is an organisational hierarchy with three levels of management.

Top-level management is occupied much of the time with organising and controlling. The level of management is a board of directors, and it is the board that will develop long term strategic plans to meet the objectives of the business.

Middle management co-ordinates the activities of supervisors. It formulates department policies and plans in accordance with the strategic plan and objectives in the overall budget.

At the lowest level of the hierarchy are the supervisors who are responsible for getting jobs done. These supervisors oversee day-to-day activities and follow the directives of management. Because of the relatively small span of control, managers have few workers to control.

Division of Labour

The idea of division of labour is to take a complex task and break it down into a number of simpler tasks, which can be performed by workers. Because the tasks are simple or repetitive, workers are not required to have a great deal of education. McDonalds divides the complete operation into a number of tasks such as supervising cooking operations, or operating a deep fryer, and assigns people to carry out these tasks.

Autocratic Leadership Style

Classical-scientific approach towards management is a highly autocratic leadership style. This means management makes all decisions; direction and commands come only from the manager. This style of leadership is derived from the belief that managers are the source of all knowledge and that the only way of achieving production efficiency is to treat employees like machines that need constant direction and guidance.

Summary

• Classical and scientific theories emerged in the 19th century
• The theories of Fayol view management as a process of planning organising and controlling
• The theories of Taylor were directed at improving labour productivity through the division of labour
• The classical and scientific theories are based on a pyramid, hierarchical structure and autocratic management, clear chain of command and short spans of control

The existence of difference and discrimination in society, due to inadequate access to socially valued resources such as healthcare, housing, employment and the justice system, permits social differentiation and enables the formation of social classes. Social classes are a chief mechanism of organisation and social control in Australian society, allowing the distribution of power, wealth and privilege as well as the formation of socioeconomic statuses and thus a form of identification, which ultimately reinforces difference rather than commonality. They are, however, also an important mechanism of self and group identity. Those at the top of the social class hierarchy attain power, authority, wealth and political privileges, generally presenting a vested interest in maintaining their social position and socioeconomic statuses, thus consolidating and reasserting their power and authority. This action of consolidating ones power may lead to institutionalized discrimination, which is evident with evaluation of Indigenous Australians.

Indigenous Australians are overtly represented as underclass and underprivileged citizens, living in relative poverty. The mere of fact of being aboriginal can lead to identification in the lower rungs of the social class ladder, thus constituting a form of institutionalized discrimination, as they do not possess the power and authority to redress their situation, which ultimately gives those members of society with the power to redress, the ability to reassert their own power, status and authority. This is evident in the past protectionist policies adopted by the Australian "white" government, which throughout the 20th century adopted a range of assimilation, protection and integration policies placing Indigenous Australians at the whim of politicians and upper class socialites. The assimilation policies allowed breaches of human rights, presenting a level of conflict, with the forced removal of children, constituting cultural genocide and ultimately led to the degradation of that society and culture. Furthermore, the government's refusal to acknowledge native title and land rights until the Mabo v Wik cases of the early 90s constituted a form of discrimination as it provided belief that Australia was settled, as determined by the English law of terra nullius.

When considering the significance placed on equality of opportunity in Australian society, it is important to note the notion of a welfare state, which involves a belief that the government has a moral and ethical responsibility to protect those least able to protect themselves, in this instance, Indigenous Australians, supported through government policy regarding access to socially valued resources, such as education through the NSW department of education, public housing via the housing commission, Medicare to promote public health, Centrelink presenting a social security network providing financial assistance as well as Legal Aid to increase access to legal representation.

However, Indigenous Australians continue to have a very limited amount of power to redress their situation, presenting a great reliance on the government to do so. This is evident in the low level of access to socially valued resources and the poor living standards afforded to them, reinforced by minimal access to housing and healthcare, with an inquiry into Australia's health in 1994 revealing that indigenous Australians were three times more likely to die of childhood diseases than other Australians, with males being 7.3 times more likely to die of respiratory infections than non indigenous males and mortality rates being some 15-20 years lower then non Indigenous Australians. Furthermore, there is a significant disparity between the living conditions and health status of many Aboriginal and Torres Strait Islander people, and those of other Australians. According to 1996 census data 6.2% of indigenous households include more than one family, compared with 1.1% of other Australian households. Overcrowding leads to faster deterioration of housing and exacerbates environmental health problems.

Access and the ability to effectively use information and communications technologies (ICT) to obtain information and services are increasingly important to fully participate in contemporary Australian economic, political and social life. However, conflict still arises in online access and use especially for indigenous Australians. Due to their socioeconomic status they have a lack of access to ICT. This is known, as the "Digital Divide" and is best understood as part of a socio-economic context and related to the issue of social exclusion. Furthering digital inclusion will require a detailed understanding of the digital divide, policy and projects to focus attention on the social, cultural, economic, educational and material factors that continue to exclude people from participating in society and the information economy. With the potential for new technologies as a platform for stronger social cohesion and underpinning social development it is crucial that reforms be made to allow greater access and educate indigenous Australians of ICT in order to increase equality.