How Treating Employees Well Impacts Profits and Sales Research Paper

How Treating Employees Well Impacts Profits and Sales - Research Paper Example In light of this, this paper will investigate the rationale behind treating employees well to benefit an organization. Although there are several other factors to consider for an organization to maximize profits, people responsible for the management of organizational matters hold the highest value in moving towards the fulfillment of organizational goals. The rationale for Treating Employees Well There are several reasons stating why better treatment of employees results in improving job performances, as well as in maximizing profits and sales. In fact, a study conducted by Leblebici (2012) on the impact of workplace quality on employee productivity documented that an organization that treats employees well tends to have a creative workforce that not only contributes to the formation of strong organizational culture but also produces top results. For example, if managers of a company develop and implement an attractive compensation plan for employees, the result will be very positiv e for the company as employees will tend to work hard to achieve rewards and benefits included in the compensation plan. This will result in improved employee productivity, as well as increased sales and profits for the company. While talking about the reasons that make positive employee treatment productive for the achievement of organizational goals and objectives, let us talk about employee satisfaction which is one of the main factors having links with positive employee treatment and improved organizational performance. It is a fact that every employee wants to in an organization that understands the needs of employees and take effective measures to meet those needs. The level of employee productivity is usually high in organizations which respect the needs of employees and provide them with safe and flexible workplace environment. Employees highly contribute to the development of the organization as long as they feel satisfaction with the workplace environment provided to them by their managers (Leblebici, 2012). For example, in organizations where employee safety and benefits are considered critical for the development of organization, the level of employee performance goes high because employees become able to concentrate more towards work instead of worrying about their professional life and safety. Treating employees well not only increases organizational performance in terms of increased sales and profits but also draws more employees into an organization. For example, an organization that treats its employees well stands a chance of creating an organizational culture that creates a good picture of the organization. When this happens, employees and other stakeholders spread the word, and this encourages other potential employees to apply for positions available within the organization. It is a fact that employees do not like to work for an organization that has poor of its culture because of improper employee treatment, such as, lack of compensation plans and job insecurity (Leblebici, 2012). Employees do not apply for jobs within such organizations and try their luck with the organizations that are known for their employee friendly culture.  

Understanding economic globalization Essay Example | Topics and Well Written Essays - 1750 words

Understanding economic globalization - Essay Example Economic journals define globalization as a process by which national economies and cultures are integrated into an international economy so as to enhance international trade, direct foreign investment, migration, and technology sharing. It is generally argued that the concept of globalization greatly contributes to effective and rapid circulation of ideas, languages, and cultural ideologies since nations have liberalized cross-border trade regulations with intent to enhance foreign investment and cross-border trade for international business expansion.On the contrary, Deepak Nayyar strongly claims that globalisation has not led to a rapid growth and economic convergence in the world. He adds that this process greatly slowed down economic growth, caused the divergence of income levels, and widened the gap between industrialised nations and developing countries. Nayyar’s framework mainly compares the globalisation process of late nineteenth century with that of the twentieth ce ntury. Nayyar’s framework Nayyar tells that the term globalisation is used both in a positive and a normative sense, and hence it is a cause for confusion. According to Nayyar (2006), the word globalisation is used in a positive sense to express a process of integration into the global economy whereas it is used in a normative sense to describe a developmental strategy in the context of a rapid integration with the world economy. In the opinion of Nayyar, globalisation can be simply referred to a spread of economic activities across national boundaries. He clearly explains that the phenomenon of globalisation has three economic manifestations including â€Å"international trade, international investment, and international finance† (Nayyar, 2006). More precisely, this process increases economic openness, promotes economic interdependence, and strengthens economic integration in the world; and in order to get more clear ideas about the globalisation process, Nayyar descr ibes the terms economic openness, economic interdependence, and economic integration. Although globalisation and resulted economic openness facilitates flows of investment, services, technology, information, and ideas beyond national boundaries; this process cannot liberalise cross-border movement of people (ibid). In addition, Nayyar strongly argues that economic interdependence as a result of globalisation is asymmetrical. He opines that countries in the industrialised world are more interdependent while developing countries are highly dependent on industrialised countries. It also seems that countries in the developing world are less interdependent. A situation of interdependence emerges when the benefits involved in linking and costs involved in delinking are almost same for both partners. In contrast, when the derived benefits and incurred costs are notably different for both partners, it contributes to a situation of interdependence (ibid). By referring to these ideas, he stat es that globalisation has not much contributed to the economic prosperity of developing and underdeveloped countries. In the view of Nayyar, economic integration straddles national boundaries because importance of borders in economic transactions has been decreased as a result of globalisation related cross border liberalisation. To justify the argument that the globalisation has reduced the pace of economic growth and also caused some adverse effects on the economies, Nayyar points out a sequence of evidences. In order to strengthen his arguments, Nayyar refers to the point that global economy in the late 20th century and early 21st century (globalisation era) was very much similar to that in the late 19th (pre-globalisation era) century in many ways. He asserts that there were no restrictions on the movement of goods, capital, and labour across national boundaries during the early 20th century and hence governmental interventions seldom constrained economic activities. He tells th at the popularisation of steamship, the railway, and the