One of the biggest issues would be incentives and commissions. Sales representatives would lose some of their commission if they were to take in Company A’s leads whereas Company B, being the originator of the leads, would have a potential for higher commissions. This may cause sales personnel to steal leads from Company A and convert them to Company B leads. This activity would also have to be closely monitored. As for the customer service representatives, they do not get any incentives because they are paid on salary and do the same work as the sales department.
Then he created the piece-work program, which incentives employees with more freedom. The program, however, faces a serious obstacle concerning the difference of two types of employees-the clock-punches and the go-getters-. In this process, Soderbey discovered that discipline could not motivate the employees and improve production, while he wanted to get more from employees. Money is the central factor to incentive the employees. So he created the Shared Savings Program having nine primary features.
By having these policies it will show that the company is willing to be competitive and will do what it takes to recruit and retain employees. There is a problem with a policy like this. It would not be a low cost strategy. Companies would be paying more for certain jobs or all jobs but they would be paying a lot in compensation. To do this the company would have to take away from other parts in the company like training, development and growth.
Thus resulting in employees being unsatisfied with the management of the business which later could impact the businesses relationship with its stakeholder through the recession, however this strategy in the long run could result in employees not losing their jobs as BA are benchmarking their competition who significantly seceding in the recession without tarnishing its relationship with its employees. This could result in the business surviving and becoming less likely to end up like Woolworths and what happened to their employees. On the other hand, during a recession I believe BA would not damage its relationship with its stakeholders. A reason for which is customers, who can be seen as the most important stakeholder to any business would try to spend as less money as possible during a recession. So with this in mind the cost minimisation strategy employed by BA would mean that
Even though many of the employees are able to start employment with little training, this has led to the differences in human resource practices among regional managers which counter Tanglewood’s original philosophy. • Hire Yourself or Outsource Tanglewood should ultimately focus on “hiring yourself” for their human resource functions of hiring activities such as recruiting, selecting, and employment. At the rate in which Tanglewood is growing, it will ultimately be cheaper in the long term as Tanglewood becomes a large organization. By hiring yourself, Tanglewood will also be able to build on the centralized corporate/company culture in which they are looking for. By hiring yourself the company would be more familiar with current and past experiences the company has faced with different staffing situations and they would be able to improve on any mistakes they may have had.
The LFS limits the accuracy of the calculation of the unemployment rate because it results in the issue of “underemployment” or “underutilisation” meaning that people are able and willing to work more hours, however are unable to do so due to the lack of demand from firms for workers to work additional hours. 4) Suppose a firm decides to pay its employees “efficiency wages” that are much higher than in other comparable firms. What may be the reasons for this and
The administration cost of a separation includes the cost of the severance cost, exit interviews, unemployment hearings and other cost associated with turnover. The training and retraining of the employees is a huge cost to endure in such short periods of time. The indirect cost here include the excess of the overtime pay to current employees or monetary compensation to be paid to an outside source to use a temp service to take care of the work until a permanent employee is recruited and hired. This is paid in order to compensate to current employees in overtime or a temporary service to fill that void until the right person is found and located. The loss of production and or customers due to failure to deliver the employees or products you sell is also an indirect cost that affects the business in a negative way.
By observing productive and non-productive time a manager can reasses staffing on an hourly, weekly, quarterly, or annual basis, minimizing cost for the facility. With careful management projections can be made for the upcoming years budget. The mananger has a constant struggle to maintain adequate staffing without exceeding his/her staffing budget. (Davis, 2008) The goal should be more creativity and productivity from each employee, and less non-productivity, which amounts to paying employee for time when they are utilizing their time properly. If employees are doing more socializing with other employees and friends on Facebook than their job duties, it can make for much frustration for
The role of unions allow members to negotiate for better wages and benefits but dissenters would argued that unions tend to use their collective bargaining to push for wages and benefits that are too excessive leaving no room for flexibility, which often leads to a dead halt in where both the employer and union members are not satisfied with the outcome. An article in American Thinker reported that some unionized
Less people would have to depend on welfare and other community services to get by. Many people depend on welfare because the current minimum wage is not enough to satisfy their basic needs. So, an increase would help more people help themselves. An increase would benefit all workers because it would push wages up for all employees. An employer would not be able to hire an unskilled employee for the same amount of a skilled employee, who has been employed longer.