Financial and Non-Financial Motivation: An Overview

Financial and Non-Financial Motivation: An Overview In modern society, business markets are getting more competitive. As a consequence, firms in the markets try to use more effective ways to achieve their goals, which include earning more profit and expanding market share. Motivation, which is a way that encourages employees to make an effort to work, is a feasible method to help firms to reach their targets. According to Tutor2U (n. d. a), if workers are motivated well, the business will get better productivity as well as improved product quality, and earn good reputation. Hence, a business ought to spend considerable time in thinking the best way to motivate employees, and there are a significant number of different opinions about it, including financial motivation and non-financial motivation. These two methods of motivation focus on different kinds of employees and satisfy different needs of workers. In addition, both of the two measures have their advantages as well as disadvantages. Therefore, the business should use these two m ethods together to encourage employees to work harder or worse, and make productivity good or bad. Different people have different needs to work, so according to specific conditions, a business should use different methods to motivate its workers. Hall et al. (2008) state that Maslow concluded a theory that there are five levels of human needs which employees need to have fulfilled at work, and they are physical, safety, social, esteem and self actualization. An employee would be motivated by the higher need, only once a lower level of need has been fully satisfied (Tutor2U, n. d. b). For example, a person, who has no money and is dying of hunger and thirst, may think about basic wage at first instead of job security and respect from others. A business ought to offer different sets of incentives from worker to worker, because workers are not all motivated in the same way. According to Hall et al. (2008), McGregor also suggested two theories to explain why people have the will to work. Theory X assumes some workers are motivated by money, while theory Y assumes other workers are mo tivated by many other factors. For instance, due to the little amount of wage, lower paid workers, who include blue collar workers, tend to be willing to work overtime to earn higher pay. However, as for the better paid employees, including white collar workers, salary is not the only important factor for them. They may pay more attention to other aspects of work, such as colleagues, recognition and promotion. Consequently, a business should take different measures aiming at different kinds of employees in order to meet all of their needs and make profits. Financial motivation, which is related to a fair days pay for a fair days work, has both its strengths and weaknesses. Money is necessary for everybody, especially for the poor who have a strong desire to earn more money so as to make a living. Hence, the specific approach that motivates employees using money could be a good way to improve performance of workers as well as productivity. On the other hand, financial motivation may also cause some problems too, such as quality and operating problems. Hall et al. (2008) list some possible methods of financial motivation, including piece rates, fringe benefits, performance related pay and profit sharing. Each method has different benefits and drawbacks to motivate workers. An example is piece-rate pay, which is recommended by Taylor, it is the wage that is paid to workers by the number of products they make in a certain period of time (Hoddersamplepages, n. d.). Workers would work harder to earn more, because the ones who produce more co uld get higher pay. It might be good for increasing the speed of work therefore productivity. Nevertheless, piece rates tend to make employees rush work, so lead to some quality problems, and further influence the reputation of the business. Another measure is fringe benefit, and it is the extra money that employees receive in addition to their normal wage or salary, such as a company car, free use of a house as well as private health insurance (Tutor2U, n. d. c). It can help satisfy the social needs of employees and make them loyal to the firm. At Google for example, it provides free meals for employees to motivate them to be more loyal and make profits for the company (Hall et al., 2008). However, Tutor2U (n. d. c) also points out that fringe benefits could be difficult for the firm to operate because of increasing costs that are used by individuals. Therefore, there are some obvious advantages and disadvantages of financial motivated methods. Owing to the problems of financial incentives, firms should also use non-financial incentives to encourage workers. The similar to financial motivation, non-financial motivation has not only many significant benefits but also some drawbacks too. According to Tutor2U (n. d., b), Mayo reported that the human relations approach is the process for retaining and developing people in organizations but not using ways that involve money. A case in point is Tejas Securities Group. The Chairmans Cup is a silver chalice, which is awarded by the firm each month. It is the award to the workers who contribute to the success of the whole firm, so it inspires employees to work harder toward achievement (Searchwarp, n. d.). Non-financial incentives include job enrichment, empowerment and team working (Hall et al., 2008). Job enrichment means giving workers new sets of interesting and challenging tasks, which is supported by Herzberg (Hr-scorecard-metrics, 2010). It provides employees more chances to develop their capabilities and make them gain a strong sense of achievement. On the other hand, Tutor2U (n. d. d) reports that job enrichment might make some expensive mistakes if the work is too complex for workers or they do not possess the correct skill level. As for empowerment, it gives official authority to workers to make decisions and control their own activities (Hall et al., 2008). For example, employees can arrange how to use their time and how to achieve the tasks by themselves. The advantages of empowerment are significant, one of which is making employees feel free to make the most suitable choices for themselves. The disadvantages are obvious as well. Hall et al. (2008) point out employees might be given more work with the same pay, so they may be not willing to do it. Furthermore, empowerment may increase the costs that relate to the business, such as the costs of changing the workplace and training the workers (Hall, et al., 2008). If the employees make wrong decisi ons, it tends to have bad effects on the whole business. As a result, both the strengths and weaknesses of non-financial incentives exist. To sum up, according to Maslows hierarchy of needs as well as McGregors theory X and theory Y, different workers may have different needs to be met through motivation. On the one hand, either financial motivation or non-financial motivation is useful to encourage employees. On the other hand, both of the methods have their drawbacks as well. As far as I am concerned, these two methods are both beneficial for a business to motivate its employees, improve productivity, then earn more profits and achieve the business objectives. Thus, a business ought to combine these two methods, and use them together reasonably. The business should also take advantage of both financial as well as non-financial motivation, and try to avoid some unnecessary problems depending on specific needs of employees and real conditions of work.

Bowens Family Systems :: Psychology

The purpose of this paper is to explain using Bowen's family systems framework, how an individual's level of differentiation and anxiety influence family relationships and strengths. Bowen's family systems theory addresses how patterns of interaction in the family of origin influence a couple's interaction in the next generation with their children. Bowen describes the differences in family functioning, by the degree of anxiety or the degree of differentiation within the family. Bowen's definition of differentiation of self as a persons ability to differentiate intellectual functioning ( thinking ), from feelings. The level of differentiation of self is determined in the family of origin. When an individual has an increased level of differentiation, he has a clear sense of his own identity. A person's intellectual functioning helps behavior to be rational, less impulsive, more independent and autonomous. These individuals have good problem solving techniques, and are less influenced by others. As differentiation of self increases, levels of anxiety decrease. As anxiety goes up, differentiation goes down. A child's differentiation of self develops around an emotional system. With a high level of anxiety, functioning is impulsive, rather than rational. Individuals with a low level of differentiation, develop dependent and emotionally fused relationships. These individuals are more dependent on others. Their sense of self is clouded, and they don't develop a clear identity. Their feelings and thoughts are fused, and they express a pseudoself rather than their true opinions. Families whose members have increased levels of differentiation and decreased levels of anxiety, they will be rational and cognitive in their ways of relating to other family members, and more effective with problem solving skills. They will try to clearly communicate their views or beliefs. They will have healthier relationships. An individual with an increased level of differentiated self , will allow their child to be their own person, and express himself openly. This leads to a well adjusted independent adolescent, with flexible problem solving skills, and an increased level of goal orientation. Families with decreased levels of differentiation and increased anxiety with in the

Basic Computer Fundamentals

Introduction A  computer  is an electronic machine, operating under the control of instructions stored in its own memory, that can accept data, manipulate the data according to specified rules, produce results, and store the results for future use. Computers process data to create information. Data  is a collection of raw unprocessed facts, figures, and symbols. Information  is data that is organized, meaningful, and useful. To process data into information, a computer uses hardware and software. Hardware  is the electric, electronic, and mechanical equipment that makes up a computer.Software  is the series of instructions that tells the hardware how to perform tasks. Characteristics of Computers 1> Automatic: Requires human intervention to start any task, solve problem but once initiated, it continues the job until its completed. 2> Speed: in terms of microseconds (10 power -6), nanoseconds(10 power -9), and even picoseconds (10 power -12). A powerful computer is capable of performing several billions simple arithmetic operations per second. Limited by hardware and software resources. 3> Accuracy: garbage-in-garbage-out (GIGO).E. g. Human input error, programmer logic error. 4> Diligence: Unlike human beings, a computer is free from monotony, tiredness, and lack of concentration. 5> Versatility: Can perform multiple tasks at same time. Limited by hardware and software resources. 6> Power of Remembering: As long as user desires, it can store any amount and type of information. Limited by hardware and software resources. No IQ: Cannot make decisions until instructed. Cannot learn on its own. No Feelings: No emotions, no taste, no knowledge. Instructions are required. 1. Evolution of Computers Necessity is the mother of invention then who is the father? – Curiosity, Vision, Idea 1642: Pascal invented first mechanical adding machine 1671: Baron Gottfried Wilhelm von Leibniz first calculator for multiplication 1880: Keyboards & Herman Hollerith u sed punch cards as input devices 19th century: Charles Babbage, father of modern digital computer, Differential Engine, Analytical Engine 1. The Mark I Computer (1937-44) 2. The Atanasoff-Berry Computer (1939-42) 3. The ENIAC (1943-46) 4. The EDVAC (1946-52 5. The EDSAC (1947-49) . The UNIVAC I (1951) 1. 3 Computer Generations Overview of the major developments and technologies during the five generations of computers which include both hardware and software that together make up a computer system. 1. 3. 1 First Generation (1942-1955): – Used vacuum tubes(glass), performed calculations in milliseconds -Memory electromagnetic relays, Data & Instructions using Punch Card, Assembly Language Programming Characteristics: Bulky in size, thousands of vacuum tubes, constant maintenance, costly, all circuits were man-made. . g. ENIAC, EDVAC, EDSAC, UNIVAC 1, and IBM 701 1. 3. 2 Second Generation (1955-1964): – Used transistor, Germanium semiconductor, magnetic disks and tapes, magnetic core memory – faster, small in size, low cost, consume less power – High level programming language like FORTRAN, COBOL, ALGOL, SNOBOL 1. 3. 3 Third Generation (1964-1975): -Integrated Circuits(IC) consists of transistors, resistors, capacitors, SSI(Small Scale Integration), MSI – more fast, performed one million instructions per second -low space, more reliable, less power consumption e. . Mini computers & Mainframe computers 1. 3. 4 Fourth Generation (1975-1989): – personal computer, IC- LSI, VLSI – one million electronic components on a single chip. Semiconductor memories – less power, more fast, small in size – Magnetic tapes, floppy disks, LAN, WAN, GUI, MS-DOS, Windows, Macintosh 1. 3. 5 Fifth Generation (1989-Present): – VLSI & ULSI(Ultra Large Scale Integration) – Microprocessor chips: 10 millions electronic components Small, much faster, less power, portable, internet, www, email 1. 4 Block Diagram of C omputer 1. 4. 1 Input Unit: – Accept data & Instructions – Convert into digital form so that computer can accept and further processing can be done e. g. Mouse, Keyboard, Light Pen, Joystick, Scanner, Touch Screen 1. 4. 2 Storage Unit: The storage unit performs the following major functions: †¢ All data and instructions are stored here before and after processing. †¢ Intermediate results of processing are also stored here. > Primary Storage(Main Memory): – This memory is generally used to hold the program being currently executed in the computer, the data being received from the input unit, the intermediate and final results of the program. -Temporary in nature, i. e. volatile memory -fast and cost is high than secondary storage -e. g. Random Access Memory(RAM) 2> Secondary Storage/External Memory(Secondary Memory): – Long term/ permanent storage of data. -slow and cost is low than primary memory -e. g.Floppy Disk(FDD),Hard disk drive(HDD), Comp act Disk(CD), Digital Versatile/Video Disk, USB Drive, SDD 1. 4. 3 Memory size: -Digital Computer uses the Binary System i. e. 0's and 1's – Each character or a number is represented by an 8 bit code. -1 bit = either 0 or 1 – 4 bits= 1 nibble & 8 bits= 1 byte 1. 4. 4 Output Unit: – Any peripheral devices that converts the stored binary coded data into convenient external forms as texts, pictures, sound – e. g. Monitor, CD, Printer, Speaker, Head phones, plotter, projector 1. 4. 5 Arithmetic Logical Unit: All calculations(arithmetical +-x/ ), comparison(,=) and decisions – Whenever calculations are required, the control unit transfers the data from storage unit to ALU once the computations are done, the results are transferred to the storage unit by the control unit and then it is send to the output unit for displaying results. 1. 4. 6 Control Unit: -It controls all other units in the computer -The control unit instructs the input unit, where to sto re the data after receiving it from the user and how to output. It controls the flow of data and instructions:(fetching of instructions from main memory and subsequent execution of these instructions) 1. 4. 7 Central Processing Unit: The ALU and the CU of a computer system are jointly known as the central processing unit. You may call CPU as the brain of any computer system. – A PC may have CPU-IC such as Intel 8085, 8086, 8088, 80286, 80386, 80486, Celeron, Pentium, Pentium Pro, Pentium II, Pentium III, Pentium IV, Dual Core, Core 2 Duo, Quad Core and AMD etc. 1. 5 Summary:

5 Key Events in Affirmative Action History

5 Key Events in Affirmative Action History Affirmative action, also know as equal opportunity, is a federal agenda designed to counteract historic discrimination faced by ethnic minorities, women and other underrepresented groups. To foster diversity and compensate for the ways such groups have historically been excluded, institutions with affirmative action programs prioritize the inclusion of minority groups in the employment, education and government sectors, among others. Although the policy  aims to right wrongs, it is among the most controversial issues of our time. But affirmative action is not new. Its origins date back to the 1860s, when initiatives to make workplaces, educational institutions and other arenas more inclusive to women, people of color and individuals with disabilities were set into motion.  Ã‚   1. The 14th Amendment Is Passed More so than any other amendment of its time, the 14th Amendment paved the way for affirmative action. Approved by Congress in 1866, the amendment forbade states from creating laws that infringed upon the rights of U.S. citizens or  denied citizens equal protection under the law. Following in the steps of the  13th Amendment, which outlawed slavery, the 14th Amendment’s equal protection clause would prove key in shaping affirmative action policy. 2. Affirmative Action Suffers Major Setback in Supreme Court Sixty-five years before the term â€Å"affirmative action† would come into popular use, the  Supreme Court  made a ruling that could’ve prevented the practice from ever launching. In 1896, the high court decided in landmark case  Plessy v. Ferguson  that the 14th Amendment did not prohibit a separate but equal society. In other words, blacks could be segregated from whites as long as the services they received were equal to those of whites. The Plessy v. Ferguson case stemmed from an incident in 1892 when Louisiana authorities arrested Homer Plessy, who was one-eighth black, for refusing to leave a whites-only railcar. When the Supreme Court ruled that separate but equal accommodations didn’t violate the constitution, it paved the way for states to establish a series of segregationist policies. Decades later, affirmative action would seek to readdress these policies, also known as Jim Crow. 3. Roosevelt and Truman Fight Employment Discrimination For years, state-sanctioned discrimination would thrive in the United States. But two world wars marked the beginning of the end of such discrimination. In 1941- the year the Japanese attacked  Pearl Harbor-   President Franklin Roosevelt  signed Executive Order 8802. The order prohibited defense companies with federal contracts from using discriminatory practices in hiring and training. It marked the first time federal law promoted equal opportunity, thus paving the way for affirmative action. Two black leaders- A. Philip Randolph, a union activist, and Bayard Rustin, a civil rights activist, played critical roles in influencing Roosevelt to sign the groundbreaking order.  President Harry Truman  would play a crucial role in strengthening the legislation  Roosevelt  enacted. In 1948, Truman signed Executive Order 9981. It prohibited the Armed Forces from using segregationist policies and mandated that the military provide equal opportunities and treatment to all without regard to race or similar factors. Five years later, Truman further strengthened Roosevelt’s efforts when his Committee on Government Contract Compliance directed the Bureau of Employment Security to act affirmatively to end discrimination. 4. Brown v. Board of Education Spells End of Jim Crow When the Supreme Court ruled in 1896 case Plessy v. Ferguson that a separate but equal America was constitutional, it dealt a major blow to civil rights advocates. In 1954, such advocates had an entirely different experience when the high court overturned Plessy via  Brown v. Board of Education. In that decision, which involved a Kansas schoolgirl who sought entry into a white public school, the court ruled that discrimination is a key aspect of racial segregation, and  it therefore  violates the 14th Amendment. The decision marked the end of Jim Crow and the beginning of the country’s initiatives to promote diversity in schools, the  workplace  and other sectors. 5. The Term â€Å"Affirmative Action† Enters American Lexicon President John Kennedy  issued Executive Order 10925 in 1961. The order made the first reference to â€Å"affirmative action† and strove to end discrimination with the practice. Three years later the Civil Rights Act of 1964 came about. It functions to eliminate employment discrimination as well as discrimination in public accommodations. The following year,  President Lyndon Johnson  issued Executive Order 11246, which mandated that federal contractors practice affirmative action to develop diversity in the workplace and end race-based discrimination, among other sorts. The Future of Affirmative Action   Today, affirmative action is widely practiced. But as tremendous strides are made in civil rights, the need for affirmative action is constantly called into question. Some states have even banned the practice. What’s to  come of  the practice? Will affirmative action exist 25 years from now? Members of the Supreme Court have said they hope the need for affirmative action is unnecessary by then. The nation remains highly racially stratified, making it doubtful that the practice will no longer be relevant.

Sports Writing as a Form of Creative Nonfiction

Sports Writing as a Form of Creative Nonfiction Sports writing is a form of journalism or creative nonfiction  in which a sporting event, individual athlete, or sports-related issue serves as the dominant subject. A journalist who reports on sports is a sportswriter (or sports writer). In his foreword to  The Best American Sports Writing 2015, series editor Glenn Stout says that a really good sports story provides an experience that approaches the book experience- it takes you from one place youve never been before and by the end leaves you in another place, changed. Examples and Observations: The best sports stories are based not on interviews but on conversations- conversations with people who are sometimes reluctant, sometimes in the orneriest mood, often not the most glib or polished conversationalists.(Michael Wilbon, Introduction to The Best American Sports Writing 2012. Houghton Mifflin Harcourt, 2012)W.C. Heinz on Bummy DavisIts a funny thing about people. People will hate a guy all his life for what he is, but the minute he dies for it they make him out a hero and they go around saying that maybe he wasnt such a bad guy after all because he sure was willing to go the distance for whatever he believed or whatever he was.Thats the way it was with Bummy Davis. The night Bummy fought Fritzie Zivic in the Garden and Zivic started giving him the business and Bummy hit Zivic low maybe 30 times and kicked the referee, they wanted to hang him for it. The night those four guys came into Dudys bar and tried the same thing, only with rods, Bummy went nuts again. He flattened the first one and then they shot him, and when everybody read about it, and how Bummy fought guns with only his left hook and died lying in the rain in front of the place, they all said he was really something and you sure had to give him credit at that. ...(W.C. Heinz, Brownsville Bum. True, 1951. Rpt. in What A Time It Was: The Best of W.C. Heinz on Sports. Da Capo Press, 2001) Gary Smith on Muhammad AliAround Muhammad Ali, all was decay. Mildewed tongues of insulation poked through gaps in the ceiling; flaking cankers pocked the painted walls. On the floor lay rotting scraps of carpet.He was cloaked in black. Black street shoes, black socks, black pants, black short-sleeved shirt. He threw a punch, and in the small towns abandoned boxing gym, the rusting chain between the heavy bag and the ceiling rocked and creaked.Slowly, at first, his feet began to dance around the bag. His left hand flicked a pair of jabs, and then a right cross and a left hook, too, recalled the ritual of butterfly and bee. The dance quickened. Black sunglasses flew from his pocket as he gathered speed, black shirttail flapped free, black heavy bag rocked and creaked. Black street shoes scuffed faster and faster across black moldering tiles: Yeah, Lawd, champ can still float, champ can still sting! He whirled, jabbed, feinted, let his feet fly into a shuffle. Hows that for a sick man? he shouted. ...(Gary Smith, Ali and His Entourage. Sports Illustrated, April 25, 1988) Roger Angell on the Business of CaringI am not enough of a social geographer to know if the faith of the Red Sox fan is deeper or hardier than that of a Reds rooter (although I secretly believe that it may be, because of his longer and more bitter disappointments down the years). What I do know is that this belonging and caring is what our games are all about; this is what we come for. It is foolish and childish, on the face of it, to affiliate ourselves with anything so insignificant and patently contrived and commercially exploitative as a professional sports team, and the amused superiority and icy scorn that the non-fan directs at the sports nut (I know this look- I know it by heart) is understandable and almost unanswerable. Almost. What is left out of this calculation, it seems to me, is the business of caring- caring deeply and passionately, really caring- which is a capacity or an emotion that has almost gone out of our lives. And so it seems possible that we have come to a t ime when it no longer matters so much what the caring is about, how frail or foolish is the object of that concern, as long as the feeling itself can be saved. Naà ¯vetà ©- the infantile and ignoble joy that sends a grown man or woman to dancing and shouting with joy in the middle of the night over the haphazardous flight of a distant ball- seems a small price to pay for such a gift.(Roger Angell, Agincourt and After. Five Seasons: A Baseball Companion. Fireside, 1988) Rick Reilly on the Pace of Play in BaseballThings that nobody reads in America today:The online legal mumbo jumbo before you check the little I Agree box.Kate Uptons resume.Major League Baseballs Pace of Play Procedures.Not that baseball games dont have a pace. They do: Snails escaping a freezer.Its clear no MLB player or umpire has ever read the procedures or else how do you explain what I witnessed Sunday, when I sat down to do something really stupid- watch an entire televised MLB game without the aid of a DVR?Cincinnati at San Francisco was a three-hour-and-14-minute can-somebody-please-stick-two-forks-in-my-eyes snore-a-palooza. Like a Swedish movie, it might have been decent if somebody had cut 90 minutes out of it. Id rather have watched eyebrows grow. And I should have known better.Consider: There were 280 pitches thrown and, after 170 of them, the hitter got out of the batters box and did ... absolutely nothing.Mostly, hitters delayed the proceedings to kick imaginary dirt o ff their cleats, meditate, and un-Velcro and re-Velcro their batting gloves, despite the fact that most of the time, they hadnt even swung. ...(Rick Reilly, Play Ball! Really, Play Ball! ESPN.com, July 11, 2012) Research and Sports WritingAthletes will tell you that games are won or lost in practice. Sports writers will tell you the same thing about stories- the key work is doing research before a game. The reporter tries to find out all she can about the teams, the coaches, and the issues hell be covering. Sports writer Steve Sipple comments, Background is the one time I dont have to worry about asking the right questions. Its the one time when Im able to relax and have fun while I familiarize myself with an athlete or issue.(Kathryn T. Stofer, James R. Schaffer, and Brian A. Rosenthal, Sports Journalism: An Introduction to Reporting and Writing. Rowman Littlefield, 2010)

Savings Bond in America Essay Example | Topics and Well Written Essays - 500 words

Savings Bond in America - Essay Example It can also be redeemed as early as one year after its purchase, making it a short-term investment. The bond holdings require no additional fees and "bond purchaser is not required to have a bank account to buy, hold, or redeem a bond and therefore is not subjected to the burdensome ChexSystem review" (Lopez-Fernandini). There are two types of bonds with which small savers can choose: the Series I U.S. Savings Bond which was introduced in 1998 or the newer Series EE bond introduced in 1980. The two bond options are available at the Treasury Department, at financial institutions, internet banking system, through the payroll savings plan while and through select employers with valid social security number (Lopez-Fernandini). Currently, the Treasury Department issues 8 denominations for the paper EE bonds - $50, $75, $100, $200, $500, $1,000, $5,000, and $10,000 denominations. There is also an introduction of the electronic EE bonds which can "be bought in increments of one penny for $25 or more" (Treasury Direct). A purchase limit of $5000 worth of EE Bonds for each calendar year was set by the government (Treasury Direct). "Savings bonds are backed by the full faith and credit of the United States government" (Vohwinkle). This makes U.S. Savings Bonds the safest investment. "The return on Series I bonds (5.64% in early 2009) is currently outpacing Treasury Bills, affirming bonds as a competitive and safe investment.

U.S. Demographics to the Year 2050 and the Outlook for Social Security Essay

U.S. Demographics to the Year 2050 and the Outlook for Social Security - Essay Example Using predictions that assume a low birth rate, at one time, its expenditure will have been outrun by the income generated. Consequently, in the absence of a suitable alternative source of income, the system will fail (Bergmann 2). It is, therefore, quite essential to make correct and accurate predictions, especially the ones that assume the worst-case scenarios. This prepares the system managers for the worst, and the necessary arrangements made to avoid the situation. Assuming the worst does not happen would give a moral boost for the system but will leave it unprepared for any drastic future changes (Boskin 2). The two segments that most influence the social security system are the people that fall between ages 18 and 64, and 65 years and above, representing the working class and the retired respectively. For clear analysis of the effect of the number of people in these two groups, it is essential to find the ratio of the numbers in both groups. One advantage of using this measure of comparing groups in a population is that it gives a general overview of the situation by elimination method. Consequently, the next merit of this technique i.e. simplicity is seen. It enables one to analyze complex ideas albeit with some simplicity. The major weaknesses of this method arise from the assumptions it makes. Though the official age to start working is 18 years, there are people as young as 15 and 16 who are working and thus contribute to the social secur ity kitty. On the other hand, others reach the age of 65 and continue working, and they too contribute to the social security system. This reality compromises accuracy of this estimation method. It also ignores the contribution made by these two groups in the population (U.S. Population Projections 2020-2050 1). In cases where fertility and immigration remain low, the dependency ratio of the working class reduces against the retired citizens. This means that the number of retired people per every employed person increases. This scenario would mean disaster for the social security system as less and less people would be funding it while the number of dependents would increase exponentially (See table 1). This is the least favorable alternative to the social security system; it would mean less money would be available to fund the increased expenditure (Lee, Anderson and Tuljapurka 4). Current trends aggravate the situation as improved medical care, and higher standards of living have resulted in increased life expectancy. This, however, does not mean that the paper advocates for low life expectancy. Within the 50-year forecast, the workforce population to age ratio changes depending on the availability of new labor force to replace the retiring one (See figure 1). Based on the measure that predicts an increase in the dependency ratio caused by low population growth due to low fertility, reduced immigration and increased life expectancy, the rate of employment does not match that of retirement. This exerts undue pressure on the working population, and the balance has to be reestablished somehow, either by reducing benefits (expenditure), or by increasing income. The most likely scenario is whereby the population will increase but at a rate that would not keep up with the increasing retirees. The dependency ratio is expected to change from 4.88 in 2000 and will reach nearly 2.7 by 2050. This means that each dependent will be taken care of by taxes