Labor Market Liberalization - Assignment Example

Name Professor Title Date Labor market liberalization Introduction Liberalization of labor market means changing the labor market to become more of a free market than it was before. That means that employees or laborers are free to move from one organization to another that makes them comfortable. Labor market liberalization means opening up of the labor market and not locking it out like before (Barrow 1996). It also means that organizations are free to hire employees who meet their specific qualifications without any restrictions. With the liberalization of labor market, the rights of employees are important and arte given priority .The rights are inclusive of the working conditions, the salaries and other benefits that they should enjoy while working in the work place. Liberalization of the labor market has had an impact on organizations, both positive and negative impacts. However, the positive impacts outdo the negative impacts hence; making it beneficial to organizations. The reforms have led to the liberalization of labor market which has been a benefit to many parties like the organization or the work place (Pace 2002). This is because it is now easy to hire employees with the right qualification. It is about making the labor market e free market for the organization and the employees. The government and the economy are also beneficiaries of these reforms. It has an impact on the wages of employees in the organization. This is because through this liberalization led to an increase in the wages and salaries of workers due to the rights that employees have. There has been an increase in the incomes of employees due to the reforms on the salaries of employees (Evenett & Hoekman 2004). There is employment of more employees in organization due to these reforms in the labor market. Market like arrangements Competition. In regards to Bruce (2006).It is the examination of strength and abilities of people or employees in a work place with the aim of improving the quality of work in such organizations. It is competing with other members of the same organization for a certain prize like bonuses or salary increments among other benefits. Competition is the rivalry between more than one firm to increase efficiency of their products and effectiveness. The rewards of competition are meant for the winning or the best employee at our work place so that there is motivation for all the employees. Our work place uses direct competition among the employees in that employees are given a goal to achieve and they compete to achieve them .Our work place does not, however, encourage completion amongst employees because it creates rivalry. The completion here is against the set goals and not which employee is the best or the worst. It is about which employee meets the level of standards set in terms of the production or service levels. It is through this completion that we form a basis of rewarding the employees according to the ones who achieve the objectives have set. The aim of using this arrangement in our work place is to provide motivation for the workers in achieving the objectives of our organization. Our work place implements this arrangement by setting a certain level that the employees should meet at a given duration of time. For instance, we set the level of producing a given commodity to be 500 units at end of every week. Our organization also sets the kind of reward that it gives to the employees who reach the target they have set (Nelson, D. L & Quick, J. C. (2010).There is a reward for the employee who meets this level. These rewards act as a motivating factor for the employees. Motivation of the employees means that they all will work hard to give the best of their outputs and the level that has been set (Kossler, M.E & Prestridge, S. (2011).The target of the rewards is to improve the welfare of the employees in our work place so that they get the motivation to work harder each day. Motivating workers makes them feel the recognition of their efforts in the organization, unlike where there is no recognition of their efforts. It is by doing this that they get a reason to come to work in our work place. Impacts of competition in our work place There are both negative and positive effects of introducing completion as a market like arrangement in our work place. The positive impacts are more than the negative ones, which means that it has been of help to our work place (Federman 2009). A healthy completion among employees is where they compete to achieve a certain level of output, and not competing with each other. Our work place ensures that we set the goals so that the competition is fair. For instance, we set a goal of producing 2000 units of a certain product by the end of each month by each employee in the organization. Competition among employees in our work place has led to an improvement in the quality of services and products. This is because every employee is striving hard to give his or her best in terms of the output they give in the work place (Barrow 1996). They do so because they want to have the benefits of being the best in our work place and giving the best of their outputs. This has been a healthy completion because the there has been a great improvement of the quality of services that we offer in our work place. This has led to an increase in the returns and profits in our work place because of an increase in the number of customers purchasing our products. Employees benefit from this competition since we provide opportunities for the best performing employees in our work place. These opportunities are meant for the best performing employees, so they work hard to achieve that position. Our work place gives these opportunities to the overall best employee on the basis of the kind of output that they give to the organization. Some of the opportunities that we offer to the best performing employees under the different categories that we have are like training opportunities for them (Pace 2002). The training seminars are meant to improve on the qualities of their skills and also for interaction with other employees of different organizations so that they learn from them. There has been an expansion of business in our work place because of the competition in the organization. This includes the increase in the variety of products that our work place deals with that is, variation in the products (Bruce 2006). This is because of the increase of the products that we produce and the improvement in their quality due to the competition. Our slogan in the organization is that if an employee achieves the set objectives, the whole work place wins. The expansion of our work place has been a result of this hard work and competition of the employees to fully utilize their potential. It has been a benefit to the organization because of the creation of markets in our business line hence; more earnings for our organization. A negative impact of competition in or work place is that some employees feel that there is no recognition of their efforts in the organization hence; feeling inferior (Federman 2009). There are those employees who achieve well and others achieve highly hence; they feel that they are seen as poor workers and there is no motivation for them to work. This feeling in our work place creates a rivalry among the employees hence; at times not able to achieve the objectives set. 1. Disperse decision making arrangement. According to OECD (1994).Decision making is the process of coming up with one choice from many choices available to the decision maker. It is a process of coming up with a conclusion or judgment from the many alternatives. Disperse decision making is an arrangement by organizations to delegate decision making duties to other members of the organization rather than the top managers. The decision makers in this case are a group of employees. They are responsible for making decisions concerning the organization like purchasing of products or employment and deployment of employees among many other decisions. They affect the decisions either directly or vice versa. This kind of arrangement works in such a manner that everyone in the organization is part of the decisions made. There is the distribution in our entire work place of the power to make decision such that everybody in the organization makes decisions (Federman 2009). This means that the top managers are not the only people that make decision in the organization. There is creation of groups of employees on the basis of their skills like purchasing skills or accounting skills. This is so that the decisions they make are of quality and of standard according to the skill. We refer to this arrangement as the participative method because every member involves him or herself in the process. The intension of this arrangement in our work place is to ensure that all the levels of management in our organization have the authority to make decisions. That means that every employee has a role to play in the decisions of our organization which makes them responsible enough (Federman 2009). It is a form of sharing of powers in our work place, so that top mangers do not have overpowers over our organization. However, the management still remains with a little more powers than the lower levels of administration in the organization. The main aim of adopting this type of arrangement in our work place is to encourage delegation of duties to the lower levels of management so that they acquire skills. These skills will be of help to them in their human resources (OECD, 1993); This arrangement also gives the employees in the lower levels of management a sense of ownership and belonging to our organization. We also want the decisions that are made to be diverse and broad with the consideration of the opinions of all members in our work place. This delegation motivates the employees in our work place, especially the lower levels of administration. The policies made from this form of arrangement are less unbending; therefore, enforcing them is easier than those made only by the top mangers of the organization (Pace 2002). The lower level employees will find it easier to fit in such decisions because they were part of the making hence; making it easy to implement them. This is because this arrangement in our work place allows for use of less power or dictatorship to the lower employees. Impacts of disperse decision making The implementation of disperse decision making in our work place has had its advantages and disadvantages. However, the advantages outdo the disadvantages and that is why we use this arrangement in our work place (Evenett & Hoekman 2004). It has a good impact in our work place because decisions that we make with this arrangement are quality decisions that are helping our organization to grow. This arrangement also has been of help to all the employees of our work place because of its benefits. Making of decisions using this model is fast and produces quality decisions. This is because there is consultation of all the employees in the work place who give their opinion about it. The contributions by all members of our work place make the quality of the decisions to be high and effective (Evenett & Hoekman 2004). This is because a decision will be given to the group of employees in our organization then they discuss on it and come up with relevant solutions. It is a fast way of decision making because the top mangers are not left with a huge work load of making all the decisions in the organization. This kind of decision making encourages delegation of duties by the top management to the lower levels in the organization. This delegation is done on the basis of the skills of the members of the organization. Decisions are given to those members with the relevant skills on that field so that they make quality decisions Federman, B. (2009).This encourages the delegation of that duty to lower levels of management hence; motivate the employees. In reference to Ho, Li-Hsing & Chen-Chia Chuang, (2006).There is empowerment of employees at the lower levels of management because of involving them in making decisions for our work place. This will give them additional skills for decision making which will be useful incase of promotion of these employees in the same organization where they will utilize these skills .Empowering these lower level employees involves the test of abilities of workers to come up with decisions that will greatly affect the whole organization. Our workplace has been able to create responsibilities in the lower levels of management when they are given such duties to make decisions. Our work place is a big organization, therefore, disperse decision making leads to efficiency of the decision making process. This is because the top mangers do not have to approve all decisions in our organization. This reduces the load of the top mangers, which means reduction in their work hence; efficiency in their outputs. Retrospective commentary on the research This research has been of help because there are various lessons I have learnt from it like creating awareness of market liberalization of labor and its effects on the market like arrangements. This research has been of benefit not only to the researcher alone but also to organizations because they are learning how to delegate duties to the subordinate staff for effective decision making in organizations. There are lots of new things from this research that did not have knowledge on it before (Ho, Li-Hsing & Chen-Chia Chuang, 2006), these are all lessons that I have learnt and comments on the research about labor liberalization and its effects on the market like arrangements in organizations and specifically our organization. The research has also shown me how the implementation of the arrangements in the organization is done so that it favors all employees. For instance, how competition and elimination of dormant employees works (Evenett & Hoekman 2004). One of the lessons I have learnt is that the implementation of these arrangements is not an easy one because of the oppositions that it faces in the organization. Also, being a new arrangement in the market, it is bound to bring along challenges when trying to implement it. This is because no other organization uses it, so creating no example for other organizations to copy. Another lesson I have learnt from this research is the effects and impacts of the market arrangements on organizations that adopt them. This is because there are always the impacts of any change that takes place in the organization. The impacts the market arrangements from this lesson are both negative and positive. The research shows and explains both the positive and negative effects so that organizations can look at them and decide if they are fit for them. Some of these impacts are new even to our organization, therefore, providing an opportunity to learn them more. These lessons that I have learnt are helping many other organizations that need to change their arrangements so that they keep up to date with the changes in the labor market. This include some factors like the disperse decision making in organizations. This aspect is new and beneficial to me and other organizations because of its importance discussed above. It is a new technique in organizations to involve all employees in the decision making process so that they improve on the quality of decisions (Federman, 2009). Among the new things I learnt from this exercise are the effects and impacts of diverse decision making. These impacts include factors like: A negative impact of this arrangement in our work place is that it proves a challenge for us too control operations in terms of the decision making. There is no uniformity in the making of decisions in the organization because of the delegation of such duty (Bruce 2006). The kinds of policies that are set using this kind of arrangement are not standard because they are made by different people in the organization. When decisions are made by specifically the top mangers, there is the standardization of the decisions. That means that mangers should be careful when delegating the duty of decision making to the subordinate staff. They should delegate this sensitive part of the organization top the lower levels of management who have the skills to make such decisions. I also learnt disadvantages of this arrangement like incase a decision goes wrong, it is difficult to establish the long chain of the decision makers. Conclusion In conclusion, the accountability of decisions made in this form of arrangement is difficult. This is because no member of our work place wants to have an association with wrong decisions made. These are the negative impacts that this arrangement has at our work place and they pose as a challenge to our organization. All these are lessons learnt and comments on the research about market like arrangements and the liberalization of the labor market. This research paper has shown the changes taking place in the labor market and its effects on both the employees and on organizations. There are also explanations on the two types of market like structures in use in our organization. It shows how they work in our organization and the impacts they have had on it on the implementation of the arrangements. References Barrow, C.W. (1996), "The strategy of selective excellence: Redesigning higher education for global competition in a postindustrial society. In: Higher Education, 41, Kluwer Academic Publishers, Netherlands. Bruce, A. (2006): How to motivate every employee: 24 proven tactics to spark productivity in the workplace: McGraw-Hill professional. Evenett, S.J. & Hoekman, B.M. (2004), "International Cooperation and the Reform of Public Procurement Policies" Federman, B. (2009): Employee engagement: a roadmap for creating profits, optimizing performance and increasing loyalty: John Wiley & Sons. Ho, Li-Hsing & Chen-Chia Chuang, (2006), "A Study of Implementing Six-Sigma Quality Management System in Government Agencies for Raising Service Quality," in Journal of American Academy of Business, Cambridge, Vol. 10, No. 1, pp. 167-173. Kossler, M.E & Prestridge, S. (2011): Leading dispersed teams: John Wiley & Sons. Pace, R. W. (2002): Organizational dynamism: unleashing power in the workforce: Greenwood publishing group. OECD (1994), Public Management Developments: Update 1994, OECD, Paris. Nelson, D. L & Quick, J. C. (2010): Organizational behavior: Cengage learning. OECD (1993), Managing with Market-Type Mechanisms, OECD, Paris. Read More