Impacts of Liberalization of Labor Markets - Essay Example

Impacts of liberalization of labour markets Name Institution Impacts of liberalization of labour markets Labor markets are essential in the economy of any country. They determine the level of growth of any country through addressing the challenges that affect employers and employees. The concept of liberalization of labour markets has been an issue f concern among many nations. In this case, liberalization of labor markets allows employees and employers to have free will of working and looking for find work effectively (Barrow, 1996). The ability to find work and create work helps in determining flexible wage rates. In addition, liberalization is effective in allowing employees to fight for their rights by undertaking labor unrest. Under most occasions when the employees foresee exploitation by their employers, they go to the streets to seek justice. Market liberalization has significant impacts on production of a company. For example, companies that engage employees in decision-making have higher advantage in making more sales than companies that have authoritative bosses (Ho, & Chen- Chia, 2006). This is true because the employees play a bigger role in handling most of the jobs directly. On the other hand, the employers act as a guide to employees on how to handle their work effectively. The liberalization of the labour market has expanded the use of market-like mechanisms such as competition, pricing, dispersed decision-making and work-based incentives to enhance program outputs. These mechanisms are essential in analyzing the productivity of a company in the present. In addition, the mechanisms help in carrying out contingency planning responsible for solving any threats that may hinder the operation of a business (Scott, 2001). In the end, the company in question will be better placed to utilize opportunities and work on the weaknesses of the company to increase productions. Dispersed decision-making is necessary for companies seeking to improve on the quality of their services and increase company performance. In this case, decision-making refers to the ability of using cognitive measures appropriately aiming at picking a choice that best suits a problem from an array of options. Dispersed decision-making allows a manager to incorporate other people in the decision-making process. This element is vital as it brings people who are like-minded together towards solving a problem (Hood, 1991). Dispersed decision-making allows the manager to consider several suggestions that arise from stakeholders and employees. This ideology helps the manager to have a wide range of options for considerations that may not have existed initially while handling the problem on a personal basis. Dispersed decision-making provides the spirit of togetherness that is vital to any company. Employers and employees are entitled to work together with the aim of increasing performance. For example, when employees are incorporated in decision-making, social inclusion is emphasized. Employees are in a position to give their views on situations that may seem less effective in the company (Hood, 1991). In addition, the employees are able to show case their skills of decision-making allowing them to work under minimal supervision (Flynn, 1990). In the end, the company management will have to deal with other issues rather than supervising the employees all the time. Dispersed decision-making intends to enhance performance of a company and increase sales. Managers, who allow the employees freedom of expression and inquiry, are likely to improve the management of the company. On the other hand, employees feel trusted, and they work hard to prove the effectiveness of their ideas (Scott 2001). For example, when an employee has problems with customer service delivery strategies within the company, the employee may suggest an effective way of solving the situation. If the manager finds the alternative convincing, the employee will be given a chance to prove the idea. In the end, customer service delivery may improve and increase the rate of consumption of goods and services of that company. Initially company managers were afraid of using the ideas of employees to increase performance. However, after discovering that decision-making helps in sharing of ideas that may be effective, more company managers have resulted to dispersed decision-making. In the end, it has helped in increasing company performance. Incentives are vital in any company aiming to increase performance and output. However, the incentives should be applied effectively as they can also destroy a company. Work based incentives refer to additional benefits given to employees to appreciate their effort or to make their work easier. Incentives can be in material or non-material form. The main idea of incentives is to show appreciation or enhance behavior that may consider necessary for an organization’s status. For example, an employer can reward an employee for the excellent work done by giving the employee a bonus (Fitzgerald et al., 1991). This motivates the employee to work harder. In addition, it is a sign of motivating other employees to work harder in order to be recognized in future. In the end, the employees will be increasing output and performance of the company. However, it is vital to note that incentives can create enmity within the employees. For example, one employee may consistently get attention and receive awards and appreciation from the manager. On the other hand, other employees may become jealous and may find ways of destroying the employee’s reputation. Initially managers feared that the latter would occur in case incentives were incorporated. However, it has been noted that incentives are vital in motivating employees to work harder and in the end, Increase Company output. Dispersed decision-making and work based incentives are essential in the performance of a company. The two aspects play a role in quality and value provision of services within a company. Dispersed decision-making allows the manager to have a variety of options to choose from before making a decision. When a manager involves other people in the decision making process, the manager allows several suggestions that are weighed and considered (Hood, 1991). It also gives the employees opportunities to improve on their skills on decision making when it comes to solving customer issues. For example, a telecommunication company may have problems with customer service delivery. In such a case, the manager can allow the customer service department to suggest ways of solving the problem. Giving employees the option of suggesting alternatives that may be useful for the company, may be a step of initiating a new service delivery methods. These methods will be appreciated by the employees and consumers. Therefore, the employees will feel appreciated and in put extra effort to display that, their ideas can benefit the organization. In the end, service delivery will be of quality, as it will be evidenced by the growth of consumer consumption in that company. Work based incentives are equally valuable in providing quality service delivery. This is ascertained by the fact that incentives motivate employees to work harder. They insert more effort in order to get bonuses in future or get a promotion. In addition, incentives allow employees to be focused on what they do. Under most occasions, when there are reward incentives, demotions also exist (Oyer, 2006). This means that employees who do not show great performance are demoted or sacked from the company. Therefore, in order avoid such circumstances the employees work extra hard to provide quality services and avoid losing their jobs. Liberalization of labour markets has several concepts in place that are unknown to many people. While carrying out research on mechanisms that have emerged through liberalization of markets, I discovered that liberalization of markets is effective in many companies. States like Korea that limits the employers and employees when it comes to decision making lose a lot when it comes to inspiring the development of a nation. For instance, decentralization of labour markets minimizes competition within the country. Employees are not motivated to work as their abilities may be appreciated but not rewarded. In addition, policy implementation by the state may not favor the employers or employees. Policy implementers do not involve other people in the policy making process. After survey has been taken and employers and employees concerns are put in writing, it is upon the state to find the alternatives that suits the people. In such a case, labor markets are oppressed. They do not take part in issues like wage determination as desired by other employees. Liberalization of labor markets allows people to engage in contingency planning that is vital to any business seeking to remain in operation. This means that, workers have the free will of expressing their ideas that may be incorporated in the development and performance of the company. For example, a company like Eurostar provides railway services linking United Kingdom to Belgium and France. This high-speed railway service must endeavor to have a team of professional workers who analyze the whole program. A slight change in the operation of the railway service can cause the company server loses or tremendous profits. Therefore, incorporating a systematic procedure that allows the workers and managers to work together is necessary. This means that Eurostar must have a well-trained team that appreciates diverse decision-making processes. This enhances their chances of focusing on establishing new opportunities that are vital in improving performance. Allowing employees to suggest their views is the best way of combating a problem (Newton, & Gray, 2009, para. 4). Reason being, the employees frequently engage themselves with the consumers. Concerns raised by the customers reach them first before they get to management. In addition, it is notable that the field world is carried out by the employees. Therefore, the employees are in a better position to come up with solutions to solve the problems in place. The concept of work-based incentives plays enormous roles in the provision of quality services and enhancing performance of a company. Incentives come in different forms and are vital for motivating the employees and managers (Gneezy, Meier & Rey-Bie, 2011). Managers who have played a large role in the performance of a company always are rewarded. In addition, their advice is usually appreciated even if they retire from their positions. For example, Alex Ferguson played a large role in coaching Manchester United football team. Through his hard work, Manchester United has remained top in most leagues. The retirement of the manager of the team was well appreciated by team members and Manchester United fans. In the end, rewards given to Alex Ferguson motivate other managers to work harder and leave a legacy in the football association. This example shows that work based incentives encourage service delivery to its fullest. However, it is not good for managers to work in order to be rewarded. Providing services on a free will perspective help the manager to learn more. Learning never stops unless a person is not willing to learn new things. However, if a manager embraces the occurrence of challenges that exist in the labor market and learn ways of coping with the situation, the manager will have made an enormous step in solving upcoming problems. Employees also get rewards of different forms. Compensation incentives, recognition incentives, rewards incentives and appreciation Incentives are the most common forms of incentives used by employers to motivate their workers to maintain sustainable performance. Compensation incentives may be in the form of bonuses or reasonable raises. For example, when an employee shows tremendous growth in achieving desired goals and objectives under minimal supervision, the employer may give the employee a salary bonus (Condly, Clark, &. Stolovitch, 2003). In addition, the option of getting a raise to a supervisor may be incurred. In the end, it motivates other employees who do not believe in their efforts to work harder. Recognition incentives are also common forms of work-based incentives used to encourage hard work. In this case, employees are usually rewarded by given tokens like certificates to recognize their efforts. Under other circumstances, the employers often praise the employees who show tremendous growth in their performance. This helps them to have a positive attitude and build a positive self-esteem. Confidence building is vital in enhancing quality service delivery. However, too much praise may be dangerous to the employee. For example, some employees become over confident that eventually ruins them in the future. Such employees believe that their opinions are the best and ignore opinions from other people. Therefore, in case an employer recognizes such traits in an employee, the employer should counsel the employee and give a sense of direction to the employer for personal and organizational benefit. Some employers give reward incentives to their best performing employees. A simple gift can motivate an employee to perform even better. The idea behind gifts is to have a reminder that once an employee’s effort was recognized and appreciated. For example, Manchester United manager was given a jersey with his name on it. This indicates that the company valued his work and appreciated his quality services. Other forms of incentives can be in terms of appreciation. For example, a company can organize a party for its employees to appreciate their hard work. In addition, offering things like holiday tours to the employees is among the best ways to appreciate employees work. Therefore, work based incentives motivate employees to perform much better and compete with other markets. In the end, it enhances chances of receiving more customers and increasing sales and profits. In conclusion, knowledge of liberalization of labour markets can be useful guide for grandaunts seeking employment. It gives them knowledge on how to incorporate skills learnt in class to achieve organizational goals and objectives. In addition, countries that appreciate liberalization of labour markets give employers and employees to establish themselves. It helps in realization of opportunities that are useful for personal or organizational gain. In the end, all participants in the labour market benefit from each other. Reference List 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, 447-469. Condly, S. J. Clark, R. E &. Stolovitch, H.D. (2003). The effects of incentives on workplace performance: a meta-analytic review of research studies. Performance Improvement Quarterly, 16(3). Flynn, N. (1990), Public sector management, Hemel Hempstead: Harvester Wheatsheaf, New York Fitzgerald, L. et al. (1991), Performance measurement in service businesses, chartered institute of management accountants, Cambridge. Gneezy, U. Meier, S & Rey-Bie, P. (2011). When and why incentives (don’t) work to modify behavior. Journal of Economic Perspectives, 25(4), 191-210 Hood, C. (1991). A public management for all seasons?. Public Administration, 69(1), 3–19. Ho, L & Chen-Chia C. (2006). A Study of Implementing Six-Sigma Quality Management system in government agencies for raising service quality. Journal of American Academy of Business, Cambridge, 10(1), 167-173. Newton, P. & Gray, M. (2009). Eurostar runs tests after train failures. Retrieved May 15, 2013, from http://www.cnn.com/2009/WORLD/europe/12/20/france.tunnel/index.html Oyer, P. (2006). Initial labor market conditions and long-term outcomes for economists. Journal of Economic Perspectives, 20(3), 143-160. Scott, G. (2001).Getting the fuzzy end of the lollipop: the problems with devolved budgets in further education colleges in. The International Journal of Educational Management, 15(4/5), 252-257. Read More