One of the limitations of niche marketing is that this market strategy is not suitable for long term business because of the fact that niche does not offer sufficient business. In case if one`s business has to rely on selling large quantity or large number of products then niche marketing is not a place to business.
In today’s competitive workforce, compensation and benefit packages plays a crucial role on recruitment and retention for both the organization and the employee. Bumpbie finds itself in a situation where it could positively affect its employee’s morale, turnover rate and longevity; by making a strategic decision to implement compensation and benefit packages that will encourage current workers to stay and entice new applicants. Money is not always the inherent reason businesses experience high turnover rate, the constant shifting in the job market will always be a contributing factor as well as employee’s moral. Mayhew, R. (2016), explains that an “employee compensation plan” refers to all the components offered as well as the way in which they are paid, and the reason behind the employees getting the compensation case bonuses, salary increases and incentives. The fact that there are voluntary and mandatory benefits that organization provides to their employees give employees the freedom of choice, as well as the option to make the whether to stay with or leave an organization based on the benefits it provides. Variable Pay is also an option that some employers offer their employee which is performance based or results oriented. Whether it is profit sharing, merit based programs or incentive bonuses; it all comes down to which organization can provide employees with the compensation or benefits packages that best satisfy their needs.
In 2008, the economy in the United States took a severe downturn into a recession. Due to this recession, the management at Thompson Technology “implemented a companywide hiring freeze to curtail labor costs by 10 percent “ (Gusdorf, 2012, p. 1). The lengthy period of uncertainty, job realigning and numerous changes intensified the overall sense of uneasiness and frustration for the employees, which in turn lead, to employee disengagement. Now that some of the most difficult decisions have been made, Human Resources must address the problem of low morale. This particular issue threatens to cost the company in productivity and loss of human talent. In order for HR to address these issues, they will first need to assess the level of disengagement of the employees. Once the assessment is complete, they can begin strategizing ways to improve employee engagement and maintain productivity.
Thinking critically and making decisions are important parts of today’s business environment. It is important to understand how the decision making process works and the steps involved. The nine steps of the decision making process are: identifying the problem, defining criteria, setting goals and objectives, evaluating the effect of the problem, identifying the causes of the problem, framing alternatives, evaluating impacts of the alternatives, making the decision, implementing the decision, and measuring the impacts. (Decision, 2007.) By using various methods and tools to assist in making important business decisions an individual can ensure the decisions they make will be as successful as possible. In this paper it
According to the article, “The Downside of Downsizing,” Caela Farren, points out that companies no longer have loyalty to their workers; therefore, it is no surprise that workers no longer look to remain in jobs long-term. Farren also believes that companies need to look beyond the bottom line and see that it is the human factor that makes the company successful (Farren, 2008).
Although qualitative analysis is used for physical areas, with the usage to tackle non-financial information, it can be widely useful in business and finance fields.(kesh and Raja 2005, 167) The qualitative analysis of the company level is concerned with products and services, competitive advantage, management efficiency, corporate culture. Advanced products can get increasing cash inflows and improve company value (Carter and Demissew 2008, 63) because booming demand for products and services can lead to a high reinvestment rate of the company, this creates additional wealth.( Madden 2007, 125) Competitive advantage can includes producing capacity and the efficiency of a company’s design and cost controlling better than the industry’s competitors. Generating a competitive advantage for a company will creates stakeholder value. (Vilanova, Lozano and Arenas 2009, 63) The improvement of management efficiency can lower operating costs and company culture can enhance corporate image, leading to improvement of company value.
At a time when many companies experience a difficult economic situation, they have to cut costs by laying off workers, and worse if your employees decided to leave for other competitors. Losing a talented worker is costly and to replace your top employee’s knowledge, experience and customer relationships is not something as simple as ones might think. So why do good employees quit? Even with high wages or great benefit, employees can still depart from the company if they do not get along well with their managers. So in order to keep good employees on board, the managers play an important role in knowing and matching their workers’ needs. In what follows, I going to analyze the case study: “Why are we losing all our good people?” which is about a fictional firm called “Sambian Partners”; what's really the reasons that is driving talented people out of the company and offering some solution to help Sambian stop the talent drain.
A company under economic duress will often be forced to make difficult decisions, many of which can impact the experiences and lives of personnel. This is especially true when dramatic cost-cutting changes are demanded and even more so when these changes center on employee payroll. For personnel, financial compensation simultaneously represents a demonstration of the companies valuation of one's services and a critical means for individual survival. Thus, when payroll cuts must occur, there will inherently be negative consequences in the areas of motivation and morale. The research here will investigate these negative consequences with an emphasis on how best to keep morale at an acceptable level and to keep employees engaged in their work.
While cutting budget cost is important, current employee happiness should be the upmost priority, and according to one study (Streimikiene, 2009), job satisfaction has gone down dramatically in the United States over the years. Having unsatisfied employees lowers productivity and raises the turnaround rate, contributing to costly rises in operational costs within the Human resources department. Human resources are significant and crucial part of the company’s success; they budget the company's spending habits and negotiate better rates for employee benefits, including health care coverage. This department also ensures that the company is running smoothly by resolving conflict amongst employees or between employees and management. Anything that pertains to employees or managers is managed by the human resource department.
As a response to the economic recession of 2009, many companies have been forced to tighten their belts and re-energize focus on areas of their businesses that derive their competitive advantage. While cost cutting and streamlined production would likely play a part of the competitive strategy, organizations may also choose to look inwards towards internal resources as an area to exploit in the pursuit of business survival (Porter, 1999). As Watson noted “motivated and satisfied workforce’s can deliver powerfully to the bottom line”, where as in the case of Xerox in the late 80’s saw that a company focus on increased employee motivation and satisfaction correlated directly with the overall business effectiveness (Watson, 1994, p. 4).
Managers need to be aware of the negative effects layoffs can have on survivors. For instance, survivors exhibit increased absenteeism and turnover, lower productivity, and increased instances of sabotage (Gomez-Mejia et al., 2016). The productivity and morale of employees who survive a layoff will have a major impact on the future performance of a company (Broeckner, 1992). Once the layoff is complete the remaining workers are left to reorganize and take on the work of their former colleagues.
(ii) Management needs to know how employees respond to redesigned work environments, technological changes, increased accountability, compulsory increased efficiency with fewer amounts of help, and comparable phenomena that have been established to exemplify many work surroundings that have had a downsizing occurrence. (iii) A closer examination of the specific items used to the measure of the effect of downsizing reveals that stress- related issues are most responsible for the negative attitude toward downsizing. (iv) With companies downsizing it can affect you emotionally and mentally. The companies demand more responsibilities from fewer people, which can cause a lot of stress. The workloads increase to where one is working more hours and even weekends. Downsizing basically takes you away from your family and friends. Even though it is good for the company, it’s the employees who pay for it. (v) This study was part an attempt to analyze some of the variables that could affect the motivational level of survivors of downsizing variables. Furthermore the study proved that there was a big communication gap between the employees and the management, also that the management failed to answer the emotional needs of the survivors of downsizing which eventually resulted in a lot of mental trauma.
Consciously or not, the value of employees is high, especially experienced employees. So, losing them mean loss of cost. The society for Human Resource Management found that total cost of replacement can range from 90 per cent to 200 per cent of an annual salary, it already includes training and the loss of productivity (Manpower Group Solutions, 2010). Such as expensive unbalance at cost, as Kent (2004) and Bersin (2013) stated that the leaving employees are like disruption spread through the organisation, because turnover creates cost, not only in recruiting and administrative fees, but also invisible cost, such as lost productivity, lost engagement, customer service and errors, training cost and cultural impact. Those things that cannot be calculated clearly should be realized and considered by the company.
The factors that affect investments are based on the priorities of the stakeholders and decision makers, which are either based on long term growth or short term profit. In most cases firms tend to invest over long term (Adler R.W. 2000). There are many formal methods that are used in Investment appraisal and many of which are criticized as being traditional;
Workers and employees are the most important assets of any organization. Therefore, the retention of them is quite crucial to keep the business running smoothly. To achieve that different strategies are implemented, regardless the size of the organization