Emperor Constantine Essay Example for Free

Emperor Constantine Essay The relationship between the man and religion is centuries old and so is relationship between the man and the God. God in many forms have profoundly been capturing the hearts and souls of humans. In whatever phase of life this world has taken the man into, religion has always predominated the man’s life and so along with it several questions? Since, the Western world’s explorations started way back in14th Century, Christianity also spread, dug its roots in many parts of the world and spread its own interpretations about the Jesus, and his teachings. see more:to be human is to err It is evidently true that now people have ardent belief that Jesus was both human as well as divine and the life of Jesus on this Earth was both of ordinary man as well as supreme but this belief was not always there. It was the period between first and third century; people never tried to ponder on this theological aspect of their so ardent belief. Even Church did not have time to delve and search about this aspect as they were occupied in missionary activities and striving to protect themselves from persecutions. But the time suddenly changed when Emperor Constantine put an ultimate end to persecutions and also gave his moral and financial support to the Church. His support bore fruit and Christians organized themselves. In the year 325 AD at the Council of Nicaea, there was a debate among the Scholars and religious preachers. The debate was on the topic, Was Jesus a human or divine? Arius, both a priest and a preacher from Alexander said that Jesus was a human but was the first to be created by God but his opponents gave a strong argument by saying that if Jesus had been only a common human being like you and me then his death and finally resurrection would never have been so powerful to redeem our sins. If it was Jesus who had to provide salvation to humans then he ought to be divine. The opponents won and their views and ideologues appeared in Nicaean creed, where it is written, Jesus is true God of true God, begotten, not made. (Flesher, 2003) Another debate took place at Ephesus in 431 A. D. and the topic was if Jesus was human as well as divine then how can these both natures be culminated in one? Many Christians from Abtioch in Syria said that Jesus had traits of both divine and human nature but he used it differently. For e. g. If Jesus is God, he performs miracles but when Jesus plays the role of human then he suffers like a human and died. The Christians from Alexandria argued that though these two natures were blended together but these characteristics were not of equal measure. His divine power was more powerful as with his divinity, he had led human kind towards salvation and redemption of sins. His physical and normal human beings traits are not of much importance. These debates did not come into any conclusion. Again the Fourth Council was held at Chalcedon 20 years later, when Bishops thought to resolve the problem by taking middle position and got into belief that Jesus was both human as well as divine and with both these natures blended, gave human beings the path of righteousness. As a human being, he got himself prone to temptation, sins but his divine power overcame his human instinct, and this divinity in him takes the humans on the path of salvation. This formulation became the basis for the Catholicism, Protestantism, and Eastern Orthodoxy, but this belief was not adopted by every one especially Churches of Egypt, Syria, Ethiopia and Armenia. (Flesher, 2003). â€Å"And the Word became flesh and dwelt among us† (ESV. Bible John 1:14). When Jesus was born, he was human being which his closest disciple also said, â€Å"That which was from the beginning, which we have heard, which we have seen with our eyes, which we have looked upon, and our hands have handled, concerning the Word of life—the life was manifested, and we have seen, and bear witness † (1 John 1:1). John established him as a human being when he conveyed that Jesus disciples saw, touched and heard Him. (The Good News Magazine, Online Edition) He also felt hunger, thirst when he went on fast and fatigue too. Geza Vermes in his The Changing Faces of Jesus delve into the different facets of Jesus, taking into consideration the letters of Paul and the Gospel of John. The author said that as soon as the first century came to an end, Christianity forgot about the real Jesus and his messages. â€Å"Jesus, the religious man with an irresistible charismatic charm, was metamorphosed into Jesus the Christ, the transcendent object of the Christian religion. † (Vermes, 2000) In the most polemic tone, Geza Vermes (2000) said that: â€Å"As a historian I consider Jesus, the primitive church and the New Testament as part and parcel of first-century Judaism and seek to read them as such rather than through the eyes of a theologian who may often be conditioned, and subconsciously influenced, by two millennia of Christian belief and church directives. † Vermes consulted Gospel of John, which had endorsed the divine status to Jesus and then moved on to the Pauline letters, the book of acts and the Synoptic Gospels and said that if one goes by Synoptic Gospels, historical and Jewish religious tenor, Jesus is shown as a prophet – a holy man, a charismatic healer and exorcist. He also said that Jesus was a teacher to preach the words of God to the people on this Earth, as the other holy men of Jewish did. He went further to say that Jesus was a Hasid, a holy man from Galilean equivalent to other holy men as Hanina ben Dosa. Jesus always said that he was the son of man and just like other Galileans. Jesus did not indulge in halakhic matters. He even said that Jesus never wanted to form a new religion, as advocated by the Early Christian churches. Even Paul also never considered Jesus as a divine being or as a historical person. For Paul, Jesus is a redeemer of sins. He too said that Jesus was unmarried and no one else except Jesus has left a legacy of his magical words to take the human beings out of their sins towards the path of God and true living.

The Study Habits of Adult College Students Essay Example for Free

The Study Habits of Adult College Students Essay Abstract: The study habits of adult college students over age 25 were compared to a group of younger students at the University of Wisconsin, Green Bay. The younger students were matched with the older groups on four characteristics: sex, major field of study, semester credit load, and class standing. All 56 participants were undergraduate students (sophomores or juniors) who were registered for the fall 1982 term. The participants kept running records of their study habits, patterns, and difficulties for an academic year. In general, older and younger students showed similar patterns in terms of how much they studied, what activities were engaged in while studying, the time distribution, and places for studying. There was some evidence that older students studied slightly more per credit hour than did younger students. While the total numbers of difficulties encountered in studying were about the same for both groups, the character of the difficulties was noticeably different. Both older and younger students reacted very favorably to having a mixture of the age groups in their classes. Recommendations for working with adult students and suggestions for further study are offered. Appendices include interview schedules and a study log form. (Author/SW) INTRODUCTION It is an understatement to say that the standard of education in Nigeria has fallen. However, it has been realized that students who possess adequate mental abilities sometimes do not perform well in their academic work either because they do not know how to study effectively or they do not use the most effective method of studying. Many questions have been raised by teachers, parents and students themselves on why students perform so poorly academically. Even the state government has shown some concern over this in recent times by introducing low costs books for both primary and secondary schools. Although this was meant to create the desire to study by students, it has not helped the situation much because, students do not read these books. Many of the students complained of lack of time and conducive environment for study, others who try to study complained of lack of understanding. There is no doubt that these complains evidently point to one fact. That is, lack of effective study habits. It is this problem, the researcher wishes to investigate as it appears to be one of the root causes of the dwelling standard of our educational system today. Research questions: * What proportion of junior secondary school students possess good study habit than those in senior secondary school? * Will male students in junior secondary schools perform better than female students in senior secondary schools? Hypothesis: The following conjectural statements were postulated for this study: * There is no significant difference in the study habits of junior and senior secondary school students in Egor Local Government Area of Edo State. * There is no significant difference in the study habits of male and female students in junior and senior secondary schools in Egor, Local Government Area of Edo State. * There is no significant difference in the academic performance of male students in the junior secondary schools and female students in Senior Secondary Schools. LITERATURE REVIEW Psychologists as welt as layman have attempted some definitions of the word study. To some of them, study means hard work and is usually associated with school work. To others, study is applicable to other situations in life other than academic work. Mace (2002) pointed out that study is a systematic acquisition of knowledge and an understanding of facts and principles that calls for retention and application. Kelly (1998) stated that study is the application of ones mental capacity to the acquisition, understanding and organization of knowledge; it often involves some form of formal learning. Crow and Crow in Okorodudu (2000) explained that study is a program of subject matter mastery. It involves hard work. However, study involves the individuals thinking, feeling, personality, social interaction, physical activities and health rather than men learning of fact on the thought system for the purpose of recall when asked. For those who belong to the school of thought that study is not only applicable to academic work, Olatubosun in Oladele (2000) explained that a teacher is studying when he examines the results of an experiment, a lawyer when he prepares his case, a salesman when he learns about his product and a citizen when he tries to understand the issues in an upcoming election. Studies require time spent in a deliberate attempt to learn. It should be differentiated from simple leisure to reading. Thomas and Robinson (1990) emphasized that the learner needs to use a systematic discipline and purposive approach to study. Effective study consists of a conscious sequential series of inter-related steps and processes. Okorodudu (1995) asserted that, study involves the total of all behavioral patterns (addition, verbal, psychomotor, emotional) determined purpose and enforced practices that the individual adapts in order to learn and achieve competence.

Aggression In Violent Offenders Psychology Essay

Aggression In Violent Offenders Psychology Essay Anger is considered to be an innate emotion within human beings that is associated with positive and negative qualities. Subjectively, anger can range from mild to severe or from mere irritation to rage (Wright, Day, Howells, 2009). Anger can positively act to mobilize psychological resources, facilitate perseverance, protect self-esteem, energize corrective behaviors, and communicate negative sentiments. However, anger also holds the negative potential to cause individuals to act out violently and harm themselves or others (Wright, Day, Howells, 2009). The concept of anger is considered to be multidimensional in that it involves behavioral, cognitive, physiological, and phenomenological variables (Wright, Day, Howells, 2009). Anger results from interactions between four dimensions such as behavioral reactions, external events, physiological arousal, and cognitive processes (Wright, Day, Howells, 2009). The association between anger and distorted perceptions can result in the inability to make appropriate assessments of behaviors, attitudes, and interactions within social contexts (Wright, Day, Howells, 2009). Anger that has significant intensity, duration, and frequency is referred to as clinical anger. This form of anger is described as being a precursor to health and social difficulties (Gardner Moore, 2008). These difficulties can occur interpersonally, occupationally, and legally as well as could impact an individuals physical and mental health (Gardner Moore, 2008). While clinical anger does not have a criterion for diagnosis, it does serve as a contributing factor to various mental disorders (American Psychiatric Association, 2000). Furthermore, anger was described as being central to many forms of violence, which makes anger relevant to treating violent offenders (Wright, Day, Howells, 2009). Concept of Aggression Aggression is defined as behaviors that are intended to harm another person or persons (Casas, 2005). Much research addressing aggression has focused on physical acts of aggression but has since begun to expand upon the definition of aggression (Casas, 2005). Purdy and Seklecki (2006) asserted aggression is typically associated with harmful and violent acts, such as assaults and homicides. According to Beaver (2009) career criminals are more likely to use serious violence and physical aggression compared to other offenders. In addition, various aggressive and violent crimes such as robbery, assault, rape, and murder are almost exclusively confined to habitual offenders (Beaver, 2009). Tew, Dixon, Harkins, and Bennett (2012) described aggression in relation to offenders in terms of verbal and physical aggression. Verbal aggression consisted of raising ones voice, shouting, swearing, being abusive, being argumentative, conveying threats, ranting, having an outburst, initiating a confro ntation, and bullying (Tew et al., 2012). Acts such as hitting, smashing up belongings, throwing belongings, slamming doors, hitting tables, or acts that resulted in restraint are considered to be physical acts of aggression (Tew et al., 2012). Similarly, Casas (2005) described various forms of aggression. Aggression can be classified as physical aggression, indirect aggression, social aggression, or relational aggression (Casas, 2005). Casas (2005) description of physical aggression was consistent with how Tew et al. (2012) described physical aggression. Indirect aggression involves covert and harmful behavior in which a victim is not directly confronted by the perpetrator. Social aggression involves harming another individuals self-esteem, social acceptance, or social status (Casas, 2005). Lastly, relational aggression is defined as harming another in terms of damaging a relationship, feelings of acceptance, or group inclusion (Casas, 2005). In general, social and biological factors contribute to aggression (Casas, 2005). Concept of Stress The concept of stress was discussed in relation to psychological symptoms as having two primary processes including emotion regulation and coping (Watson Sinha, 2008). Fifty-percent of the variance in psychological symptoms can be accounted for via stress and coping (Watson Sinha, 2008). In psychology, the stress process encompasses cognition and emotion in which stress can be assessed in relation to an individual or a group (Valdez, 2006). Therefore, forensic psychologists are interested in how individual or group stress impacts offender populations (Valdez, 2006). Valdez (2006) discussed how stress is à ¢Ã¢â€š ¬Ã‚ ¦a variable response or reaction that involves emotional, physiological, and behavioral coping responses to the appraised stressor (p. 446). Various coping mechanisms can be employed depending on the nature of a situation. Coping mechanisms can be emotion-focused, problem-focused, or avoidance coping (Valdez, 2006). Stress is considered to be reciprocal in that a stres sor and an individual can have an impact on each other. In this regard, coping responses are dependent upon how the stressor is perceived (Valdez, 2006). In considering the offender population, a stressor could potentially elicit a violent or aggressive response if the individual feels threatened or challenged (Valdez, 2006). Relationship among Anger, Stress, and Aggression According to Howells (2004), there is a link between anger and aggressive behavior. However, this link does not mean all anger will result in violence. In this regard, anger and aggression could potentially result in physical violence and can be useful indicators within correctional environments where the potential for violence exists (Tew et al., 2012). In relation to treatment, understanding the relationship between anger and aggression can assist practitioners reduce the risk of violence through effective protocols, treatments, and intervention strategies (Tew et al., 2012). The relationship between anger, stress, and aggression was illuminated within Komarovskaya, Loper, and Warrens (2007) discussion of impulsivity and personality disorders. The multiple diagnostic criteria of psychiatric disorders included the impulsivity construct. This construct is the inability to resist impulses and results in an individual acting in a harmful manner towards other (Komarovskaya, Loper, Warr en, 2007). Impulsivity relates back to anger and aggression in terms of their definitions incorporating the concept of harming others (Casas, 2005; Komarovskaya, Loper, Warren, 2007; Wright, Day, Howells, 2009). Impulsive aggression has various contributing factors including anger. In addition, it is considered to be a reactive or emotionally charged response precipitated by a loss of behavioral control (Komarovskaya, Loper, Warren, 2007). This relates back to stress in terms of potential stressors eliciting violent or aggressive responses (Valdez, 2006). Impulsivity, anger, hostility, and antisocial personality have been identified by various studies as predictors for institutional aggression, violence, and maladjustment (Komarovskaya, Loper, Warren, 2007). Impulsivity demonstrates how anger, aggression, and stress can be concurrently present and how the relationship between the three concepts can facilitate a violent response or reaction (Casas, 2005; Komarovskaya, Loper, Warren, 2007; W right, Day, Howells, 2009). The relationship between the three concepts can also be discussed in terms of treating violent offenders. Practitioners working in various forensic settings need to consider how violent behaviors exhibited by offenders are associated with anger, stress, and aggression (Walden University, n.d.). For instance, if an individual was convicted of an assaultive, abusive, or violent crime the clinician would employ anger and stress management treatment protocols (Walden Univeristy, n.d.). Another example would be the application of mindfulness-based interventions to help alleviate cognitive, affective, and behavioral manifestations of anger within a violent offender (Wright, Day, Howells, 2009). According to Wright, Day, and Howells (2009) study, mindfulness training can be used to reduce pain, anxiety, stress, depressive relapse, and psychosis. The use of cognitive-behavioral anger management therapy is another option available to clinicians for reducing violent behaviors resulting from a nger, aggression, and stress. In a meta-analysis of fifty outcome studies, cognitive-behavioral anger management therapy was found to reduce anger in 75% of the study participants (Beck Fernandez, 1998; Wright, Day, Howells, 2009). Knowledge of the concepts of anger, stress, and aggression in relation to violent offenders is essential for practitioners working with forensic populations (Walden University, n.d.). Application of such knowledge will assist a practitioner with selecting an appropriate treatment strategy for the offender. This relates back the differences in how anger, aggression, and stress can manifest in an individual (Beaver, 2009; Casas, 2005; Gardner Moore, 2008; Purdy Seklecki, 2006; Tew et al., 2012; Valdez, 2006; Watson Sinha, 2008; Wright, Day, Howells, 2009). The overlap and concurrency of anger, aggression, and stress, as well as how each concept manifests within an individual should be accounted for by a clinician when selecting a treatment option for an offender (Beaver, 2009; Casas, 2005; Gardner Moore, 2008; Purdy Seklecki, 2006; Tew et al., 2012; Valdez, 2006; Watson Sinha, 2008; Wright, Day, Howells, 2009). Practitioners can apply their collective knowledge about anger, agg ression, and stress in order to maintain the general safety of all involved within a forensic treatment setting. Furthermore, that knowledge can be employed to assist the practitioner with delivering effective treatment to violent offenders (Walden University, n.d.).

Slavery and Sex Trafficking Essay -- Ethical Issues, HIV/AIDS

When we hear the word slavery our mind paints a picture of colonial America down in the South with big plantation houses harvesting wheat, with workers being unpaid and unfairly treated. At this time in our county we were struggling with the idea of equality for all. America has come a long way from those days but not with out a fight. Abraham Lincoln, the Civil Rights moment and free and public education has been addressed. Today, we face a new conflicts and a different type of slavery. Slavery and sex trafficking is occurring not just abroad but at home as well. In 2004, â€Å"800,000 to 9000,000 men women and children are trafficked across international borders every year, including 18,000 to 20,000 in the US. Worldwide slavery is in the millions† But the issue doesn’t stop at just slavery but at also includes sex trafficking and prostitution. (p. 506) In Kate Butchers article she discusses the difference between prostitution and sex trafficking and that solution to this problem is to address and promote human rights and working with laws that are already in place to address health issues such as HIV/AIDS and the human rights of people in the sex industry. In John R. Millers article he believes that sex trafficking should be put under strict regulations and do to so we must support and ask for action to be done at home and aboard and the government must have willingness to impose economic penalties on counties that give antislavery laws meaning. In 2003 the Leadership Against HIV/AIDS, Tuberculosis and Malaria Act of 2003 was passed. Its said, â€Å"No funds made available to carry out this Act†¦may be used to provide assistance to any group to organization that does not have a policy explicitly opposing prostitution and sex traffickin... ...e face corrupy and complit police and trying to fight diseases such as HIV/AIDS it’s a challenge. (p.506) Miller poses that here at home and abroad we need to support action taken against antislavery and have a willingness to impose economic penalties. I do agree that something needs to be done but I believe that Miller is over looking the economic effects his plan has on normal everyday children, women and men in those counties that benefit from exports and imports. If the government is corrupted they won’t care about the workers or the poor man. They want to make money in any possible way. To solve the problem of prostitution, sex trafficking, human trafficking, the speed of HIV/AIDS and slavery something has to be done. However, we should keep in mind the people we will be affecting and all the ripples are laws will create in every aspect of their life’s.

landscapes essay :: essays research papers

Take-Home Essay   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  The world we live in today is always changing, whether it be technology or the land. As these changes take place, society must adapt to them. Many things begin to change as a result of this and society beings to turn into something completely different. One of the most overlooked changes that takes place is that of the environment and landscape. The landscape is one of the most important parts of our society’s culture and has a great effect on how we live. It seems that nowadays, many individuals are taking advantage of the land and nothing appreciating it for every thing that it is worth. Its true that not everyone is going to look at the environment and landscape in the same way, however that is no excuse to disrespect it. Then again, a whole new argument can start from that, as different individuals are going to have different views on what disrespecting the land. Many positive things have come from taking advantage of the land, and a lso, there have been many negative things to come as a result of this. It all depends on how you look at it. One thing is for sure though, no matter what the case is, the land and environment we live in plays a huge part in each of our everyday lives.   Ã‚  Ã‚  Ã‚  Ã‚  Our landscape is constantly changing, since the Big Bang Theory to present day. There are many different factors which can a huge impact on the shaping of the land. There are many natural disasters such as floods, typhoons, earthquakes, hurricanes, and even wildfires. They can change the face of the landscape and they can change the shape of the landscape. Then there is also the human factor. Many huge companies and businesses are always taking advantage, or as Denis Wood refers to as in â€Å"The Spell of the Land,† the raping of the land. It is a very rare sight to being driving nowadays and not see some type of building being built or a future sight of some type of business. There is nothing that can be done when looking at the natural disaster factor, but as for the human factor, there are steps that people can do to prevent the â€Å"raping† of the land. Again, like I touched upon in the introduction, not all usage of the land by companies is a negative thing. landscapes essay :: essays research papers Take-Home Essay   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  The world we live in today is always changing, whether it be technology or the land. As these changes take place, society must adapt to them. Many things begin to change as a result of this and society beings to turn into something completely different. One of the most overlooked changes that takes place is that of the environment and landscape. The landscape is one of the most important parts of our society’s culture and has a great effect on how we live. It seems that nowadays, many individuals are taking advantage of the land and nothing appreciating it for every thing that it is worth. Its true that not everyone is going to look at the environment and landscape in the same way, however that is no excuse to disrespect it. Then again, a whole new argument can start from that, as different individuals are going to have different views on what disrespecting the land. Many positive things have come from taking advantage of the land, and a lso, there have been many negative things to come as a result of this. It all depends on how you look at it. One thing is for sure though, no matter what the case is, the land and environment we live in plays a huge part in each of our everyday lives.   Ã‚  Ã‚  Ã‚  Ã‚  Our landscape is constantly changing, since the Big Bang Theory to present day. There are many different factors which can a huge impact on the shaping of the land. There are many natural disasters such as floods, typhoons, earthquakes, hurricanes, and even wildfires. They can change the face of the landscape and they can change the shape of the landscape. Then there is also the human factor. Many huge companies and businesses are always taking advantage, or as Denis Wood refers to as in â€Å"The Spell of the Land,† the raping of the land. It is a very rare sight to being driving nowadays and not see some type of building being built or a future sight of some type of business. There is nothing that can be done when looking at the natural disaster factor, but as for the human factor, there are steps that people can do to prevent the â€Å"raping† of the land. Again, like I touched upon in the introduction, not all usage of the land by companies is a negative thing.

Magnetic Fluids :: GCSE Chemistry

1.1 PRELUDE: The phenomenon of ferromagnetism is associated only with the solid state of matter; like iron, nickel, cobalt and some rare earth metals and their alloys. Thus, up to now, there is no intrinsic homogeneous fluid having ferromagnetic properties; although, theories admit the possibility of ferromagnetism in the liquid state, and suggest that there is no inherent reason why they should not exist [1-3,5]. Ferromagnetism occurs when paramagnetic ions in a solid lock together in such a way that their spins all point (on the average) in the same direction . At a certain temperature this locking breaks down and ferromagnetic materials become paramagnetic. This transition temperature is called the Curie point (TC), which is invariably well below the melting point of the corresponding material [1,8,12]. 1.2 MAGNETIC FLUIDS: Magnetic fluids ( MF ) are stable colloidal suspensions of ultrafine ferro- or ferri- magnetic particles ( D100Ao ), coated with a surfactant like oleic acid, in a suitable liquid carriers such as Isopar-M, kerosene, decalin, etc., [1,2]. The idea of MF was put forward independently and almost simultaneously by several investigators. The first prepared MF was developed by Stephen Papell of the National Aeronautics and Space Administration (NASA) in the early 1960s. After that, Ronald E. Rosensweig and his colleagues succeeded in formulating MFs that were 10 times as strong magnetically as Papell`s original MF [1]. The special feature of magnetic fluids is given by the fact, that they combine normal liquid behavior with superparamagnetic properties, as will be discussed later. The possibility of magnetic fluid control gave rise to the development of many technical applications in our everyday life [1-3]. Mixtures are classified into three kinds: colloidal suspensions, suspensions, and solutions, and one of the principal features that differentiate one kind of mixture from another is the size of the particles [6]. Colloidal suspensions (also called colloids) are mixtures that are intermediate between solutions and suspensions. Typically the radius of the particle is of the order 100Ao. Since this is much smaller than the size of a single magnetic domain in bulk solids, which is about , the magnetization of the individual particle is saturated, but the direction of the magnetic moment is subject to thermal agitation [1,2,5]. The particles used are commonly Fe3O4, Fe, Co and Ni. MF is a two-phase system with three components, which combines magnetic properties, carried by the solid magnetic fine particles, with fluidity of the carrier liquid.

Vertical Boundaries

Chapter 10: Vertical boundaries Chapter 10: Vertical boundaries Aim of the chapter To understand the factors that influence the ways in which transactions on a vertical chain (value chain) should be/are located on the market–organisation continuum. Learning objectives On completion of this chapter and the essential reading, you should have a good understanding of the following terms and concepts: †¢ transaction cost economics †¢ strategic calculation. Essential reading Buchanan, D. and A. Huczynski Organizational behaviour: an introductory text. (London: Prentice Hall, 2008) Chapter 18. Douma, S. nd H. Schreuder Economic approaches to organisations. (London: Prentice Hall, 2008). Further reading Besanko, D. , D. Dranove and M. Shanley Economics of strategy. (New York: Wiley, 1996). Coase, R. H. ‘The problem of social cost’, Journal of Law and Economics 3 1960, pp. 1–44. Grossman, S. and O. Hart ‘The costs and benefits of ownership: a theory of vertical and lateral integration’, Journal of Political Economy 94(4) 1986, pp. 691–719. Williamson, O. E. ‘The economics of organization: the transaction cost approach’, American Journal of Sociology 87(3) 1981, pp. 548–77. 10. 1 IntroductionAs noted in Chapter 1, we may regard the basic unit in organisational analysis as an exchange or transaction generated in the division of labour. The division of labour (exogenous/endogenous – Chapter 3) creates value or vertical chains; for example as shown in Figure 10. 1(a) running from crude oil extraction to the retailing of petroleum products. We now operate at the level of organisations or firms (recognising that at a greater level of disaggregation the points in the chain are also based on chains of the division of labour) and pose the question as to where their boundaries should be located on the value chain.In fact the picture is usually more complex than the one depicted in Figure 10. 1(a). Activities usually depend on inputs at all points down the vertical chain, as depicted in Figure 10. 1(b). So organisations or market exchanges could control and coordinate each of these transactions. Furthermore, some of these inputs may be common to the points on the main chain (see Appendix 1. 2 in this guide), like accounting services, in which case the picture looks more like Figure 10. 1(c). Note the use of di-graphs once again. 91 Organisation theory: an interdisciplinary approach a) Oil extraction Refining Retailing †¢ (b) Shipping or pipe †¢ †¢ †¢ Distribution †¢ †¢ †¢ †¢ (c) †¢ †¢ †¢ Accounting †¢ Figure 10. 1 †¢ †¢ †¢ In general we are asking the question as to whether a particular transaction should be internalised (make) or left in the market (buy), as depicted in Figure 10. 2; that is, whether a point on the chain should be a department/ function or division or remain independent. For the momen t we restrict our attention to this simple choice rather than the more elaborate positioning on the market–organisation continuum.We shall return to the more elaborate issue later on. †¢ †¢ Market (Price mechanism) Figure 10. 2 Start by asking what the benefits and costs of using the market might be. The benefits could include the following: †¢ Independent firms may be able to reap the benefits of economies of scale (i. e. operate at an output that minimises unit costs) whereas internal departments may not. Unless the firm itself can absorb all the efficient output of the department, it must either operate below the optimal output level or sell on to another firm.This might compromise any information advantages of the purchasing firm (see below). †¢ Independent firms are more subject to market disciplines than departments and may hold down costs they can control more effectively. Costs may be difficult to identify in departments. Firms might, though, attem pt to replicate market incentives inside organisations. Tapered integration refers to a situation where a firm is supplied partially by an independent firm and partially by its own department. This allows their relative cost structures to be compared. Independent firms (i. e. their managers) may have stronger incentives to innovate when compared with managers of departments. †¢ †¢ Organisation †¢ 92 Chapter 10: Vertical boundaries The costs of using the market might include the following: †¢ Private information may be leaked to independent firms – particularly if there is a need to share technical information. †¢ The focal firm becomes to a degree dependent upon an independent supplier (depending upon switching costs).Thus the latter has a power resource (see Chapter 6) and may use it to hold up the focal firm. It may prove difficult to control and co-ordinate flows of goods and services down a vertical chain of independent firms. This may be particul arly so where there is a need to fit the products closely. ‘Just-intime’ methods seek to overcome this problem and permit independent firms often with long-term relational contracts (see below). The way most economists (following Coase and Williamson) think about the choice between a market and organisational exchange/transaction is entirely predictable – choose the arrangement that minimises costs. The innovation here is to ntroduce the idea of transaction costs – the costs involved in making (controlling and co-ordinating) the transaction. They are sometimes referred to as agency costs, and agency efficiency is found where they are minimised.So, if both production costs (which relate to technical efficiency) and transaction costs vary between organisational transactions and market transactions, then the total costs should be minimised. Activity Now read Sections 8. 1 and 8. 2 in D and S. If you would like to read a slightly more comprehensive economic ap proach to vertical integration, then read Besanko et al. 1996). In a world of fully informed, rational actors where contracting is complete, there are no transaction costs and the choice between market and organisational exchange is of no consequence (at least as conceived within this framework) unless production costs vary (which, again, they should not under the same assumptions). It is because we relax both the assumptions of full rationality and full information in the context of ‘real markets’ that transaction costs arise and the choice between market and organisational transaction is pertinent.Transaction costs theory is used both in a normative and positive sense. The new assumptions are as follows: †¢ Individual bounded rationality: people are intentionally rational but limitedly so. Individuals are neither able to make very complex calculations nor to assimilate large amounts of information. As you might expect, sociologists tend to like this assumption; t hey see it as more realistic than the full assumptions of rationality. †¢ Opportunism: individuals are not only self-interested but behave with guile.For example, in the context of game theory, individuals will issue promises which are not credible, make use of asymmetric information and they cannot be trusted. †¢ Contracting about transactions is incomplete because of inherent uncertainty and incomplete information. †¢ Contracting can thus lead to ex ante opportunism (namely, adverse selection) and ex post opportunism (namely, moral hazard). †¢ These hazards will be exacerbated to the degree that there is little choice of transacting partners and therefore reputations (see Chapter 7) in respect of third parties will not constrain opportunism – small numbers exchange. 3 Organisation theory: an interdisciplinary approach †¢ Anticipated repeated interaction will make reputations important to both parties but if in the process there is learning by doing, it is then costly to later switch exchange partner. Williamson (1981) calls this the ‘fundamental transformation’ – it ties the parties into the relationship. †¢ Williamson also observes that parties to a transaction might have a preference for a certain type of transaction in addition to the costs and benefits. He calls this ‘atmosphere’. In effect Williamson is introducing wider motives/utilities.Although the vocabulary introduced by Williamson is rather daunting at first sight, it has the advantage that it should link your thoughts into many of the ideas you have already encountered. Activity Think of transactions as a prisoner’s dilemma or trust game. Both parties would like to contract to achieve Pareto efficiency but each is wary of the other and in the absence of some mechanism to offset this wariness, the exchange does not materialise – the Nash equilibrium. So what mechanisms are available? You should be able to list the mechanisms.They can be derived as follows. Competitive market – the price as a sufficient statistic; here the prisoner’s dilemma does not model the situation. Organisation – three possible mechanisms which can produce the Pareto-efficient outcome rather than the Nash equilibrium are: 1. Authority and power. 2. Trust (cultural mechanisms). 3. Repeated transaction and reputation effects. As we have seen in earlier chapters, alongside monitoring and employment contracts (incentives), we expect organisations to avail themselves of a mixture of these mechanisms.But note, if we think in terms of ‘real markets’ rather than the ideal type of perfect markets, then the price mechanism is not sufficient and perhaps these mechanisms might also apply at different positions on the market–organisation continuum. We shall return to these matters later. Transaction cost economics embraces not only an unorthodox model of the individual but characterises aspect s (‘dimensions’, to use D and S’s terminology) of transactions that impact upon the transaction costs.Activity Now read Section 8. 3 in D and S. The argument is that asset specificity (sometimes called ‘relation-specific assets’), uncertainty/complexity and frequency of exchange all increase the likelihood that a transaction will be placed (governed) inside an organisation (that is, make) rather than left to the market (that is, buy). Asset specificity comes in different forms: †¢ site specificity – adjacent sites, usually to economise on transport and communication costs †¢ physical asset specificity – e. g. pipeline delivering crude oil †¢ dedicated assets – assets of a particular buyer dedicated to a particular relationship †¢ human asset specificity – skills dedicated to a particular relationship which would be less valuable elsewhere. 94 Chapter 10: Vertical boundaries So we now have a predictive t heory about vertical integration and, incidentally, contracting out. By and large, empirical evidence has supported transaction cost theory – particularly the impact of complexity in the context of uncertainty – though one should bear in mind what Williamson terms ‘atmosphere’.If there are widespread specific preferences – for instance, managers might prefer the power implied by organisation – this would complicate the picture. Furthermore, other factors might influence the choice between market and organisation. Regulation and taxation can confer advantages in deciding where profits are generated. For instance, taxation might favour small firms, and firms operating across different national tax regimes may find it an advantage to contract out. An organisation might vertically integrate to gain a monopoly or acquire information or to limit the flow of information to competitors (see below).Given all these possibilities, it is perhaps surprisi ng that such strong empirical support for transaction cost theory is found. Appendix 10. 1 in this guide gives a slightly more formal approach to Williamson’s reasoning. The transaction costs approach still leaves open two questions: 1. Will the integration, if appropriate, be backwards or forwards? 2. What type of organisation – e. g. centralised or decentralised hierarchy? (I leave an answer to this question to Chapter 12. ) An extension of transaction costs theory called property rights theory (which is not covered in D and S) provides an answer to the first question.When a transaction is internalised within an organisation, then ownership should (note the normative word) go to the party with the greatest impact upon the post-contractual rents. Activity Although this theory falls beyond this course, you might like to read Grossman and Hart (1986). Property rights theory is essentially a theory of bargaining power. Incomplete contracts mean that residual extra-contra ctual control of assets is important. Ownership confers bargaining power over operational decisions when enforceable contracts break down.Anticipation of post-contractual hazards determines earlier investment decisions. We now need to complicate the picture by reintroducing the market–organisation continuum, as in Figure 10. 3. I use the term ‘continuum’ with a certain amount of licence as the alternative positions on it vary in a number of respects and could be reordered. The continuum runs from perfect competition, at one end, to integration or organisation, at the other. The question now is: where should a transaction be placed on the continuum?Before answering this, let us look at what B and H have to say about the issues we have been discussing. 95 Organisation theory: an interdisciplinary approach Spot markets (perfect competition) Real markets Bargaining Franchising Long term contracts (network organisations) Tapered organisations Virtual organisations All iances Joint venture Monopoly (small numbers) Externalities Asymmetric information Fixed cost (risk to supplier) Risk sharing Cost plus (risk to buyer) Decentralised Integration (up/down) organisation Figure 10. Activity Now read Chapter 18 in B and H. Again, this chapter in B and H is extremely detailed; you need to master the main ideas running down the left-hand margin. None of them is inconsistent with anything you have learned from D and S; though note that the definition of vertical integration is in fact backwards vertical integration. Table 16. 3 in B and H gives a good overview of what I have termed the organisation–market continuum. So let us now return to the continuum – see Figure 10. 3 – keeping the rich descriptions in B and H’s chapter in mind.First, look at what I have termed ‘real markets’. Here we recognise that in the real world the market environment is often far from perfectly competitive. If the transaction is left to th e price mechanism, then various market distortions may undermine the price as a sufficient statistic. If, for instance, a supplier holds a monopoly, then backwards vertical integration may look attractive to a buyer. Likewise, a buyer might be tempted to vertically integrate backwards in order to acquire information or to reap benefits of vertical synergies (externalities).Long-term contracts (which will inevitably be incomplete) enable organisations to engage in a protracted relationship. They often occur between buyers and suppliers in a vertical chain. D and S introduced the idea of ‘relational contracting’ (an equivalent term). Remember, whenever you think in terms of contracts you need to think of the incentive, risksharing and information aspects. Fixed-term contracts put the risk of, say, increases in input prices to the supplier on the supplier’s back. Cost plus contracts reverse the situation. Between these two extremes, risk-sharing contracts can be des igned.If the buyer and supplier have differing risk preferences then, other things being equal, an optimal contract can be found. Network and virtual organisations (see B and H) are usually based upon long-term relational contracts, as are alliances. Joint ventures imply equity contribution from both the supplier and buyer. Centralised 96 Chapter 10: Vertical boundaries So the question now is: where should a particular exogenously generated (by the division of labour) transaction be placed on the market–organisation continuum? (The normative question. Alternatively, where is it placed and why? (The positive questions. ) Transaction cost economics claims to be both normative and positive and answers both questions – minimise transaction and production costs! But as we have seen, this is only part of the story. Activity Now read Section 9. 8 in D and S. In summary, the choice of the position of any vertical transaction on the market–organisation continuum may be s haped by: †¢ economies of scale †¢ anticipated information leakage †¢ acquiring information †¢ transaction costs †¢ residual property rights †¢ market imperfections †¢ regulation.But how are these various strands to be woven together? Unfortunately there is, as far as I am aware, no embracing theory. B and H introduce you to the concept of corporate strategy and to what many organisation theorists term strategic choice. Although the idea that organisational arrangements designed to control and co-ordinate activities are a matter of choice was first introduced by sociologists in reaction to an earlier tradition that spoke of ‘determinism’ – often technological determinism – we can now see this as an unhelpful distinction.Economists will always speak of choice where changing technology might either enhance or restrict the opportunity set which rational decision-takers face. We might then like to think of technological deter minism when for whatever reason, the opportunity comprises a single option. I encourage you to think in these terms even if you want to question the restrictive notion of rationality (see Chapter 1). Activity Now read Chapter 9, particularly Sections 9. 1–9. 7, in D and S. Sections 9. 1 to 9. 6 of D and S cover issues of strategic planning that impinge upon organisation theory but are more often encountered in courses on management theory.You will benefit from reading them but they are not central to this unit. The central idea in management theory concerns the sources of what is termed sustained competitive advantage (SCA). Why do some firms/organisations manage to sustain a better performance than their competitors, while operating in the same markets? Statistics tend to suggest that this is a common experience in many markets. Firms often earn above-average returns (loosely rents) on their assets over relatively extended periods of time. The assumption is that they have so me characteristics (but which? that their competitors find it difficult to replicate or improve upon, at least during the time in which the advantage is sustained. From an organisational theory point of view the question to ask is – are there ways of organising which can confer SCA? Notice that when an organisation possesses a competitive advantage, for whatever reason, then this implies that perfect competition is not operating. In so far as those running organisations seek SCA, they are trying to undermine 97 Organisation theory: an interdisciplinary approach competitive forces.The early sections of D and S’s chapter show how game theory is an indispensable tool in studying competitive strategies. 10. 2 Vertical contracting and strategic choice Consider a transaction between B and S, as in Figure 10. 4. The problem is to design a contractual relationship to gain any possible rents. In terms of competitive advantage this amounts to placing the transaction on the marke t–organisation continuum more effectively than the competition. Assume that there is need for relation-specific assets and a complete contract cannot be signed because of inherent uncertainties.Suppose now that B would like to persuade S to make the relation-specific investment. S’s ex ante problem is that in the absence of trust and credible promises, s/he anticipates that, once the investment is made, B will take advantage of the situation. S anticipates that B will always be able, once the contract is entered into, to find contingencies not covered by the contract. By making the investment, S in effect confers bargaining power upon B – who may even use this power to renegotiate the original contract (attempt to reduce the price of the good or service exchanged).S will then anticipate these moral hazards and accordingly not invest; the transaction will fail and both S and B will be less well off than they could be. Thinking in terms of the (for the moment, one -shot) prisoner’s dilemma, S and B find a Nash equilibrium rather than the Pareto-efficient outcome. So what can be done to achieve the Pareto superior outcome? S Figure 10. 4 B Some possibilities (neither exclusive nor exhaustive) are: †¢ B makes the relation-specific investment (but then B confers bargaining power to S) †¢ B nd S make a joint investment – an alliance or joint venture †¢ S continues to make the investment but enters into a long-term contract with B (note that relation-specific investments tend to imply long-term relationships in the first place) †¢ forward or backward integration (here non-market incentives/ monitoring/authority/power/culture achieve the move from the Nash equilibrium to the Pareto outcome). But let us continue to assume that B wants to find a non-integration solution and still to encourage S to make the costly upfront relation-specific investment.S/he might do this in the recognition that S, as an independent orga nisation, may be relatively small, flexible and focused. S, furthermore, may be driven by a more entrepreneurial spirit than if it were to be a division or department in B’s ‘bureaucracy’. An independent S may be more innovative. Also small organisations tend to have lower labour costs (production costs). If so, then both S and B can benefit. The strategic problem is whether or not the transaction costs (ex ante and ex post) can be kept down while reaping these potential advantages.To offset S’s anticipated moral hazard problems, B needs to search for ways of reducing her/his own and increasing S’s relative bargaining power. To the degree that this proves possible, the strategy will offset S’s anticipated moral hazards. B needs to make her/himself more dependent upon S before the contract is signed. One notable way s/he can secure this is to decentralise some design and innovation responsibilities to S. B now becomes partially dependent 98 Ch apter 10: Vertical boundaries upon S. Furthermore, B can commit not only to a long-term contract but also to relatively unconditional contract renewal.These strategies do of course put B at some risk. But since we are thinking in terms of incentives to transact, you should by now recognise that risk-sharing is another aspect of the possible contracts between S and B that can be subjected to strategic reasoning. Not unreasonably, I think, assume that S is risk-averse and B is risk-neutral. So S will accept a reduction in rent in order to reduce his/her risk and, relatively speaking, B will be prepared to shoulder more risk. So, a risksharing, long-term contract can conceivably lead to a Pareto improvement. Think in terms of post-contractual price negotiation.With a fixed-cost contract any increase in S’s costs will have to be borne by S. S will be reluctant to sign such a contract. With a cost-plus contract, on the other hand, B will bear all the risks of S’s cost incre ases. Furthermore, S will have no incentives to hold costs down nor, perhaps more importantly, to innovate in order to reduce costs. Clearly, B wants S both to innovate and, where possible, to hold down costs. It is not in B’s interests to take the risk from S and undermine these incentives. How can s/he provide appropriate incentives while reducing S’s risks and in so doing make the contract interesting to S?What B needs to do is to accept those risks of cost increases which S cannot control while making S responsible for those s/he can control – a tricky business. B needs to know the nature of S’s cost structure (an information problem – no problem with full information but with information asymmetry it is another story) before s/he can achieve this. Of course, integration might dispel this problem but then we encounter the bureaucratic losses mentioned above. What can B do? Go back to your principal–agent model (see Chapter 4). We can reg ard B as a principal and S as an agent.P (B) can acquire information by having more than one agent (S) operating in the same environment (in practice this is not easy). This is called multiple sourcing. It could be achieved by either multiple external sourcing or having an in-house comparator (tapered sourcing). But, of course, one needs to ask whether B’s sourcing requirements are of sufficient magnitude to reap any economies of scale across the multiple sources. If not, would it be sensible – from an information leakage point of view – to allow the sourcing organisation to sell to other organisations on the open market?If B has decentralised design to S then this might prove hazardous. As we have observed, long-term relationships (see Chapter 8) can invoke trust and reputation effects. Traditionally it was assumed that one of the advantages of integration into an organisation derives from the repeated interaction effects. B and S being in the same organisation , they repeatedly interact and, indeed, they will assume that there is a high enough probability that they will once again interact in the future. Thus prudent calculation can overcome the moral hazards in incomplete contracting.In game-theoretic terms B and S may play TFT (the folk theorem). B may also wish to protect her/his reputation for fair play. In short, an organisation can control and co-ordinate vertical relations by cultural means. However, long-term contracts with a continuation clause also produce repeated interaction (the Japanese were largely responsible, in the 1980s, for recognising this) and, thus, reputation and trust can be generated at other points on the market–organisation continuum. Cultural mechanisms can operate outside formal organisations.If B and S can trust each other not to behave opportunistically, then the advantages of S’s independence and reduced transaction costs can be realised. 99 Organisation theory: an interdisciplinary approach Finally, reverting to an extended value chain where S’s suppliers are also brought into the picture, we obtain the situation as in Figure 10. 5. †¢ †¢ R S B Price and market > †¢ > †¢ †¢ R S B Long-term contracts > †¢ > †¢ †¢ R S B Organisation span of co-ordination = 3 > †¢ > †¢ Figure 10. Should the whole chain be co-ordinated by integration (span of coordination) or perhaps co-ordinated by long-term contracts, etc.? If the latter, should B contract with S and R or should B contract with S and S with R? In either case we have examples of network organisation and even virtual organisation if the relationships are mediated by modern information technology. The strategic complexion of these sorts of organisation is little understood. Why don’t you have a go! I hope this section has given you some appreciation of how to analyse organisation choices from a genuinely strategic point of view.Much of the abo ve reasoning can be underpinned from a game-theoretic standpoint. This further supports my earlier contention that modern organisation theory often requires a knowledge of strategic thinking and game theory. A reminder of your learning outcomes On completion of this chapter and the essential reading, you should have a good understanding of the following terms and concepts: transaction cost economics strategic calculation. Sample examination question 1. Explain why a transaction should be placed in a market or an organisation. 100