MBA Q&A

Internet transactions

2011-07-21T19:21:00.000-07:00

What are some special issues that arise in Internet transactions? What must managers do to protect their organizations in Internet transactions? Avoid discussing an issue mentioned by other students.

As a manager that deals with internet transactions, one should be concerned with protecting and renewing their domain name (such as my domain adamrlee.org), ensuring their retail site is operational and maintained, ensure adequate programming on the logistics software to ensure customers cannot buy more products than available, and have their website digitally signed and either handle the financial transactions through a third party or set up their own credit card processing component. They must ensure buyer IP addresses are logged as to prevent fraud, and also include a digital contract that the buyer should be aware of informing them of what information is being captured, how the product can be used, etc. For the sale of software, there may be clauses included on the contract prohibiting unauthorized reproductions and sharing. Any software being sold should be licensed, in accordance with relevant state e-commerce and licensing statutes.

Most have already heard of the trouble Sony has been having with hackers breaking into their databases and releasing their users information. In some cases, released information and passwords are unencrypted (stored in plain text). It should be a priority for companies to encrypt passwords for both their users and administrators. The organization should be familiar in how to use the information infrastructure protection act in their defense should persons try to steal information without authorization.

2011-07-09T16:49:00.001-07:00

Job satisfaction is something companies try to quantify and measure through the use of surveys. Over the years satisfaction surveys have been called opinion surveys, climate surveys, and now, engagement surveys. Although the names have changed, they are designed to measure employees’ attitudinal responses towards work. Knowledge gained through these surveys is great, but what the company does with it is another story. What are some practical purposes of these surveys? In others words what can they actually be used for, besides merely knowing how people feel?

If a company or organization is not planning on making a change or assessing the effects of a recent change based on the satisfaction surveys, the organization might as well not have the survey at all. The only exception to the above is if the organization is conducting its first job satisfaction survey for point of reference.

Job satisfaction surveys are practical when they are determining the results of a recent change, such as a management change or a new human resource activity. If the result of the survey is negative relative to the last one, then one can assume the change had a negative effect on employee satisfaction. If otherwise, the change made a positive impact on employee satisfaction. The course of action the organization chooses to take based on these surveys is up to them, but from a standpoint of lowering turnover it would be advisable to revert a negative change and continue and consider intensifying a positive change.

In addition to reducing employee turnover, job satisfaction surveys may in themselves make employees feel their opinions matter. For a successful modern corporation to thrive I believe employee opinions do matter.

2011-07-09T16:47:00.000-07:00

Many future problems can be circumvented if you select the right employees. Good selection is more than merely picking the right person, but rather knowing what you are looking for from a skills & abilities standpoint and traits & attributes standpoint. Skills and abilities can often be seen on a resume or application, but personal attributes, traits and character cannot be seen and are more elusive. Many employers and experts think these elusive traits are more important. How can these elusive qualities be assessed in the hiring process?

In a modern environment, employees can tap a multitude of resources in assessing traits that are not obvious from reading a college transcript or resume application. A good selection not only takes into consideration skills and attributes, such as a B.S. in Computer Engineering with extensive Java programming knowledge, but also must take into consideration values such as emotional stability and motivation. It is for this reason oftentimes employers will choose applicants who were involved in team sports over a similar applicant who was not.

Team sport is something which of course requires teamwork, and a sense of motivation. An important characteristic to look for when hiring new employees is employee confidence. As Barrick and Zimmerman (2009) put it:

"Employees with higher confidence will be more persistent in striving to adapt to novel job demands or the work setting and will be less likely to withdraw from work because of anxiety over low performance or ineffective adjustment." (pg. 186)

From personal experience, I find that many hiring professionals will use new technologies to determine these aspects of potential hires. Facebook, which is a popular site for sharing personal experiences and showing off to the world, is also a great place to check out what kind life this potential employee is living. It is for this purpose that many clever college students (myself included) will remove anything from their Facebook profile or photo albums that may keep them from getting a job.

Employee referral is a powerful tool as new employees hired on through this method will have social support early on, and usually will be more confident (pg. 189). Employees who have the confidence to refer someone else will most likely think twice before suggesting someone they know is unfit for the position.

References:

Barrick, M. R., & Zimmerman, R. D. (2009). Hiring for retention and performance. Human Resource Management, 48(2), 183-206.

Using quantitative or qualitative approach to evaluating employees

2011-07-09T16:44:00.000-07:00

Performance management can be approached in many different ways. One of the debates that has continued over the years is the question of whether to have a quantitative or qualitative approach to evaluating employees. Analyze the pros and cons in this debate and share your personal perspective based on your experience

The reason this makes for a good debate is because both sides have a valid point, but in my opinion certain variables come into play which will make one option favorable over another. A quantitative approach for performance is much easier when an employee's work can be measured - a farmer can judge a seasonal worker by the number of apples he's able to pick, for example. A qualitative approach for assessing performance is more useful for employees who do a wide variety of work, and produce ideas, or lead others.

Of course, there is an argument to be made against the quantitative approach if external factors come into play - some might consider the personal situation or background of the seasonal worker in evaluating why he didn't pick as many apples as he should have. My argument is that in evaluating employees the main focus should be on what value the employee has brought to the company. There are laws restricting employers from releasing employees for sickness or pregnancy because quite honestly both of these things will affect the employee's contribution at least in the short to medium term. For small, fast paced companies this can become a major liability in the bottom line and may end up causing the end of the company!

A qualitative approach is more useful in assessing performance for those who engage in a variety of activities and who's personality or leadership style can be evaluated 100 different ways by 100 people. Of course, a methodical qualitative approach can still be used for those with a varieties of roles and attributes by breaking down those attributes and basing performance on a collection of them.

Either way, one would be hard pressed to rid any performance review of subjectivity unless of course the function is simply evaluated by 'picking X number of apples' or 'selling Y number of products'. The more accurate the assessment the more likely it is employees will be able to improve on their troubled areas.

Overusing training to solve employee related problems in organizations

2011-07-09T16:42:00.000-07:00

When it comes to solving employee related problems in organizations often times the topic of training and development comes up. More often than not training is used to address these issues. What do you see, if any, that could be potentially wrong with this approach?

Regarding employee related problems I believe the second step after verifying that training is not the answer is to review that employee's quality of work life and whether or not he/she is being compensated and treated with respect for his/her abilities. I find it a bit narrow minded to believe that all employee related problems arise out of lack of training, but this does not rule training out as a tool for educating on a variety of issues both technical and ethical. If neither training or a review of the employee's quality of work life prove effective it is possible the employee is not optimizing his/her work priorities, and may need more assistance by his/her manager in doing so. Some employees will need more coaching than others, and a good manager will place each employee where he/she functions best. If all else fails, it may be time to reorganize and possibly consider punitive actions against an under-performing employee. Some employee related problems are based on clashes of personality, which may involve two or more employees whose infighting is damaging the effectiveness of the business. In this case it may be wise to consider moving around employees (if the company has multiple branches), or dismissing one of the employees so that work can get done.

Reflect on the traditional litigation system...

2011-07-09T16:38:00.001-07:00

Reflect on the traditional litigation system; for example, suit, answer, discovery, trial, or jury. What are risks organizations encounter when dealing with traditional litigation? What measures may managers take to reduce exposure to those risks?

The traditional litigation system is set up as a hard coded process with a variety of procedural rules. A lawsuit, also known as litigation, is divided into pleadings, discovery, dismissals and pretrial judgements, settlement conference, trial, and appeal. Each step has it's own procedures that must be followed, and the pleadings stage may invoke a counter lawsuit. The longer the process takes, the more money must be given to lawyers and the court system which could have been used in the business constructively. While some lawsuits are worth the effort and investment, many times it would be favorable to utilize an alternative to the traditional litigation process. Alternative dispute resolution methods are being used to reduce business interruption, notoriety, and astronomical costs associated with the traditional litigation system. ADRs are comprised of negotiation, mediation, conciliation, mini-trial, fact-finding, and using a judicial referee (Cheeseman, 2010, p. 43).
Of course, taking the necessary precautions not to get involved into a legal dispute along with following all applicable laws will also be useful in avoiding the costs associated with litigation. If a legal dispute must be resolved, managers should strongly consider ADRs before proceeding with the traditional litigation process.

References:

Cheeseman, Henry. Business Law: Legal Environment, Online Commerce, Business Ethics, and International Issues.
Seventh Edition. Upper Saddle River, New Jersey: Prentice Hall.

Do you all think the US Constitution is meant to be a static document, or one that should be constantly changing?

2011-07-09T16:37:00.001-07:00

Do you all think the US Constitution is meant to be a static document, or one that should be constantly changing?

The question you ask is a great one, and one that often comes up in politics. I believe the Constitution is a masterful piece of intellectual accomplishment written in an age of Enlightenment by men who beat all odds and defeated the indefatigable British Empire while championing the idea of Liberty and Freedom. I believe the Constitution should retain all existing laws but may be amended to add new laws which do not counter any existing laws which are decided by Congress through the methods described by the Constitution.

Presently, I believe executive orders have become all too common, and the Constitution is being abused constantly. Wars these days are not declared or approved by Congress, something required by the Constitution. Article I, Section 8, Clause 11 gives congress the exclusive authority to wage war. However, the Executive branch has been going off UN resolutions instead, a slap in the face to the forefathers and something that has already cost the nation trillions of dollars and countless lives. I will not debate whether or not these wars should have been made here, I will simply challenge the notion that such wars are legal under the Constitution.

Unless there is something drastic that requires an amendment to the Constitution, I would say leave it be and defend it. New citizens must pledge to defend the Constitution:

"I hereby declare, on oath, that I absolutely and entirely renounce and abjure all allegiance and fidelity to any foreign prince, potentate, state or sovereignty, of whom or which I have heretofore been a subject or citizen; that I will support and defend the Constitution and laws of the United States of America against all enemies, foreign and domestic; that I will bear true faith and allegiance to the same; that I will bear arms on behalf of the United States when required by the law; that I will perform noncombatant service in the armed forces of the United States when required by the law; that I will perform work of national importance under civilian direction when required by the law; and that I take this obligation freely without any mental reservation or purpose of evasion; so help me God."

Reference:

"Naturalization Oath of Allegiance to the United States of America." USCIS Home Page. Web. 08 July 2011. <http://www.uscis.gov/portal/site/uscis/menuitem.5af9bb95919f35e66f614176543f6d1a/?vgnextoid=facd6db8d7e37210VgnVCM100000082ca60aRCRD&vgnextchannel=dd7ffe9dd4aa3210VgnVCM100000b92ca60aRCRD>.

What is one way the U.S. legal system affects U.S. businesses? ...

2011-07-09T16:35:00.000-07:00

What is one way the U.S. legal system affects U.S. businesses? How do specific aspects of the U.S. legal system contribute to furthering commerce? What would happen if that characteristic were not present?

The United States legislative and executive branches have authority to empower administrative agencies to enforce statutes enacted by Congress. This authority is based on the last line in Article 1, Section 8, which reads:

"The Congress shall have Power To... make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof."

The Federal Trade Commission is one such agency whose original purpose was to break up and prevent monopolies; the commission now is involved in protecting consumers. I believe the FTC helps maintain healthy commerce by keeping competition within the marketplace for different industries alive, as well as protecting consumers from dangerous products or buying misrepresented goods. If such an agency were to not exist less consumers domestic and foreign would be more leery of buying American products, and significant losses would be experienced by consumers. Monopolies would stifle competition and innovation, and raise prices on their goods to the detriment of everyone else.

Another such agency made possible through US law is the US Postal Service. Unlike the FTC, the a postal service was explicitly authorized on the Constitution in Article 1 Section 8. The US postal service provides services such as certified mail, which is useful in mailing important business documents and also official assessments. The absence of the authority to empower administrative agencies would mean the absence of the USPS; the absence of the USPS would mean mail would cost more to send, and become even less attractive in the age of free communication via email.

The Farm Service Agency is yet another agency which affects U.S. farmers, providing them with financial safety nets in order to protect the agricultural sector. This agency also regulates the way farmers do business.

The above are only a small sampling of the agencies which have been created and administered based on the power to create Federal administrative agencies. The creation of such agencies is crucial to ensure smooth government function, as if no such agencies were created the Congress itself would have to administer all functions that these agencies now provide.

References:

"The Constitution of the United States," Article 1, Section 8, Clause 18.
"USPS - Organization Information." USPS - The United States Postal Service (U.S. Postal Service). Web. 05 July 2011. <http://www.usps.com/about/organizationinformation.htm>.
"About Us." Federal Trade Commission. Web. 05 July 2011. <http://www.ftc.gov/ftc/about.shtm>.
"About FSA." Farm Service Agency. Web. <http://www.fsa.usda.gov/FSA/webapp?area=about&subject=landing&topic=landing>.