By correctly compensating employees and offering further pay incentives such as bonuses or paid time off, the company will suffer less from employee turnover, which will benefit their success in the long run. CNBC guest columnist Ron Volper summarizes how paying employees’ salary and incentives will positively impact an organization, “The companies with the highest employee morale and productivity pay a mix of salary and incentives. The salary compensates employees for performing all the tasks required of them and provides them with a consistent income.” This high moral and positive attitude for compensation will positively result in retaining good employees for the long run of their
Immigrant are easy to recruit and also immigrant accept if their boss give them a low income. Local workers were being offered higher wages than immigrants but immigrant’s wages are higher than wages in their own countries so immigrant do not have to be selective in Malaysia because any job opportunities they can take as long the wages are better than their own country’s offers. There is another value of immigrants that they accept any additional jobs without complains. The growth of Malaysia’s economy will increase with the help of immigrant full filling the job vacancies. “In order to ensure that the economic development smoothly and more stable, a great number of proficient labor and
Turnover rate of employees would be low in a strong organizational culture. There is a negative relationship between strong organization culture and turnover rate. Organizations provide good treatment for employees and they have high job satisfaction. They are willing to distribute their work and help the organizations. Maybe there is arguments saying that strong organizational culture causes no freedom to be innovative.
1. According to Friedman the moral responsibility of business managers is to make sure the shareholders are taken care of as long as its legal and what they believe is morally correct. A problem with this is sometimes business managers cannot do what they believe is morally correct because they wouldn’t be using their own money, they would have to use the shareholders’ money and they may have never agreed to it. It is very important to keep the shareholders happy because without them corporations would fail; therefore, some things are done unethically. The social responsibilities of business managers according to Friedman is to maximize profits.
For example, failure in managing workforce diversity can bring dissatisfaction among the employees. Consequently, it will result high turnover and absenteeism in company which will ultimately result lower profits. High turnover will also result loss of expenditures financed on the hiring as well as training and development of employees. In addition to this, failure in managing workforce diversity may result poorer productivity of individual employees which will ultimately result lower productivity of the firm (Daft, 1997). Elmuti (2001) argued that firm may have bad image in the market and will not be able to attract competent, skilled and trained personals against the particular positions.
Even though in the workplace employees are interdependent, it’s important to respect individuals differences will help to increase productivity in the organisation. Having diversity in the workplace, can help lower the number of lawsuits and increase creativity, business image, recruitment and marketing opportunities. (Esty et al. 1995). It’s important that organisations practice diversity management for its success and the consequences such as money and loss of time should not be
This competitor can potentially take some place of Unilever products.Basically every company who is competing in an industry environment has a desire to be superior to its competitor. So in recommendation, Unilever can use some of the strategy like cost leadership strategy. By this strategy Unilever are able to provide lower prices for its product than its competitor, but in other hand they still get a satisfactory profit. Low price function as barrier for competitor to enter the competition. This strategy is effective especially for customer who easily affected by price shift.
Another element that leads to higher employee turnover is poor working conditions. If working conditions are not ideal will be inconvenienced and might seek better job opportunities. People pursue advancement in their career, if the job does not provide opportunity for
The causes of the existence of the decentralized decision making First and foremost, decentralization provides lower-level managers with crucial experience in making decisions. Without this experience, they would not be prepared to act decisively when they are promoted into higher-level positions. These decisions are important but not as vital as developing a criteria for the hiring and dismissal of employees. Hansen, Mowen and Guan (2009) claim that firms may prefer decentralization because it ensures efficiency by making sure that managers closest to the local information make decisions in a more timely fashion; that managers have hands on training to prepare them to move up the management hierarchy; that managers are motivated by having the freedom to exercise their own initiative and creativity; that managers and divisions are encouraged to prove that they are profitable, instead of allowing their failures to be masked by the overall profitability of the company. Moreover, decentralized supply chain configuration (SCC) example could offer various contemporary advantages such as individual suppliers’ decision right protection and overall decision efficiency enhancement (Qu, Huang, Zhang and Dai, 2010).
The use of performance appraisals and linking such appraisals and compensations has been consistently connected with increased productivity of a firm. HRM practices have both positive and negative effect on turnover and productivity but have little control over firm’s profitability. Many different sort of hypothesis were suggested regarding such topics. But the most appropriate one was “Alignment of firms high performance work practices with its competitive strategies will diminish employees turnover ad increases productivity and corporate financial