If other things change, then one cannot directly apply supply/demand analysis. Sometimes supply and demand are interconnected, making it impossible to hold other things constant (Colander, The Limitation of Supply/Demand Analysis, 2010). “In supply/demand analysis, you would look at the effect that fall would have on workers’ decisions to supply labor, and on business’s decision to hire workers. However, there are also other effects (Colander, The Limitation of Supply/Demand Analysis, 2010). “For instance, the fall in the wage lowers people’s income and thereby reduces demand.
in 1978 and proposed that profit was less important than fairness in the relationship. According to Hatfield (2011) “According to Equity theory, people feel most comfortable when they are getting exactly what they deserve from their relationships—no more and certainly no less” Exchange Theory is more concerned with under-benefit as a disadvantage but Equity Theory places a greater emphasis on both under-benefit and over-benefit. Under-benefits are likely to provoke a sense of anger and resentment and over-benefits are likely to provoke a sense of guilt. The Equity model suggests that a person would be driven to restore the equity within an unbalanced relationship by either reducing their input or increasing their outputs and it is the inability to reach balance that can lead to the breaking of the relationship. Investment theory focusses on the extent to which commitment is determined by investment in a relationship rather than solely satisfaction or reward.
One of my main takeaways from this topic is that money isn’t the best motivator. According to Mayo’s Hawthorne effect, employees feel more motivated when their efforts are recognized, and this can be achieved through bonuses for example. However, this can increase individualism as employees will focus on outperforming their peers. Intrinsic motivation helps create loyal employees who are more satisfied on a personal level. An example of this could be social security benefits.
He made several controversial decisions with respect to compensating AIG’s executives. The case is related to multiple motivational concepts. Internal needs reflect the reasons for which the employees chose to remain employed with AIG during the process of winding down the Financial Products business. External incentives reflect the retention bonus payments. In addition, needs theories of motivation can be invoked to provide perspective on what seem to be important motivational factors for the Financial Products employees.
Sociologists explain poverty in a number of different ways. Some sociological explanations of poverty say that the problem is with the attitudes and values of the poor, while other explanations say that the problem is with society and the economy. One explanation of poverty is the culture of poverty, which refers to the attitudes and values that people in poverty have. Poor people think that they can't change their situation and will always be poor, so they tend not to aim high and don’t make sacrifices as they feel that they won't achieve much. They also live for the moment (present gratification).
Factors employers should consider in determining if assessment methods may require evaluation; • High employee turnover rates • Poor performance related to new hires • Low applicant rates • Declines in organizational productivity • Screening of applicants effectively • Identification of competencies requirements (Person-job fit) • Identify development needs and/or capacity to obtain knowledge • Organization and cultural fit (Person-organizational fit) • Talent and HR philosophy alignment to business strategy • Other attributes; personality, attitude, motivations, teamwork and interests (Person–group fit) and (Person-vocation fit) • Validity/reliability and accuracy of method to achieve staffing goals • Minimize adverse impact, ethical and legal concerns • Maximize ROI/costs of hiring • Candidates reaction (fair, consistent and objective) Source: Strategic Staffing 2nd edition – Phillips and Gully. Chapter 9 Assessing External Candidates page 233- 240 2) Discuss the advantages and disadvantages of both structured and unstructured interviews. Which would you prefer to use? Why? Unstructured Interviews Disadvantages • Standard approach is absent variances by candidate/interviewer • Formal scoring may be lacking impacts the ability compare candidates effectively • Interviewer approach and questions may be irrelevant to competencies.
Yahoo! used a similar ranking system but compared employees against a standard, not against each other (Ivancevich et al., 2011). The importance of rank is what determines any excess compensation that the employee receives, however, ranking employees can also be detrimental to teamwork and morale. Question 1 In my opinion, forced ranking
L. Sierra said this statement, “The sad fact is that many business leaders don’t understand the value of communication” (L. Sierra, 2003). Personally, I find this fact to be shocking but I can also say that in my personal experience of dealing with people it is true. Sierra gave an equation to show non-communicators the value of communication. Sierra equation is: “Value = (Cost + Effort) Perception; That is, the value of communication is equal to the costs plus the efforts of what you're communicating to the power of perception.” (L. Sierra, 2003). Can we really measure the value communication?
The reason being as more of a certain good is consumed, it will begin to provide less utility to the consumer. This means that and extra $1 income would be of more worth to a low income earner than to a high income earner. This suggests that a more equal distribution of income will be beneficial to the total utility. Unfortunately, it is extremely to gain an accurate assessment of relative
If there is no minimum amount the company has to pay, it can save some costs that it might otherwise incur. 2. The company can hire more people at a lower income and in fact decrease unemployment 3. B. Deprives students and low skilled workers an opportunity to make an earning (Rector) 1. Minimum wage actually make low-income citizens and students worse off by pricing them out of a job due to their minimal skill sets and resources 2.