Termination of Employees


Most employees are hired for an indefinite period. If no length of employment is agreed upon, employment is “at will.” This means that an employer can discharge such an employee at any time for any reason or without giving any reason. Unions generally negotiate a change in this rule for the employees they represent. Most union contracts contain a clause that permits discharge only for good cause.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Contracts between Employers and Employees


If an employee has contract to be employed for a certain firm for a specified period of time, and the employer breaches the contract by dismissing the employee, damages recoverable would generally be the unpaid salary at the time of dismissal. Some courts allow the employee to collect wages up to the period of time at which a new job is found, as long as the employee “mitigates damages” by actively seeking employment. On the other hand, if the employee walks out without cause, then the employer may recover the cost of replacing the employee. This would include any additional salary that must be paid to the new employee which is greater than the previous employee’s salary.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Competitive Marketing Theories


Competitive market theories are derived from the neo-classical economic concepts of rational choice and maximization of utility. The assumption is that individuals choose jobs which offer them maximum benefits. The utility or value of these benefits – money, vacation time, pension entitlement and so on – vary for different individuals according to their personal preferences. People move from one organization to another if improved benefits are available. At the same time, employer organizations attempt to get the most from their employees for the lowest possible cost.

The outcome of this process is a dynamic and shifting equilibrium in which both employees and organizations compete to maximize benefits for themselves. Within a specific region or industry there is a balance between supply and demand for human resources. Pay and conditions for employees are determined by the relative scarcity or abundance of skills and abilities in the employment market. Competitive forces push wages up when demand for products – and hence employees – increases, and downwards when the economy is in recession. In the latter case a market clearing wage is eventually arrived at which is sufficiently low to encourage employers to increase recruitment and eliminate unemployment. This discourse reinforces the view that employees are objects to be traded like any other commodities in the market – human resources in the hardest possible sense. Supposedly, they offer themselves – their skills and human qualities – for sale to the highest bidders. Within this mindset they could just as well be vegetables on a market stall.

Competition theories assume that job-seekers have perfect knowledge of available jobs and benefits. Job-searching is an expensive and time consuming business. The unemployed do not have money and those in work do not have time. The result is that few people conduct the extensive searches required to find jobs which meet their preferences perfectly. In practice, most individuals settle for employment which is quickly obtained and which exceeds the reserve minimum wage they have in mind. There is a considerable element of luck involved. Moreover, the job-seeker does not make the choice: in most cases the decision is in the hands of employer.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Greed


Technically, greed is not one of the seven cardinal (deadly) sins, avarice is. Greed is an excessive desire to get or have, as wealth or power, beyond what one needs or deserves. There is no mechanism , or even rationale, for deciding what  one needs  or deserves  or what is excessive.

Pride is the first of the seven cardinal sins, but we are encouraged to be proud of country, school, family, employer, and other institutions. The issue is not pride but the form that pride takes. This applies to wanting more than one has, what some people call greed. It depends on how the greed affects behavior. Greed is not bad. Immoral and unethical behavior is bad.

Greed means the desire to have more than one has. This trait leads, through the invisible hand, to competition. Greed causes us to want more in a free, competitive society we have to work harder and smarter. This increases human welfare by providing more and better marketing mixes (product, price, distribution, and promotion). It is the marketing mix that satisfies the buyer’s wants and needs. Competition keeps greed in check except when we act immorally. In business competition, unlike sports, there can be more than one winner.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Employee-Employer Contract


Employees and employers are engaged in a stakeholder relationship that includes numerous expectations by both parties. The employer, for example, has assumed various duties and obligations. Some of these responsibilities are economic or legal, others are social or ethical in nature.

The relationship is clearly more than simply paying a worker for the labor provided. Cultural values and traditions also play a role. In most Western countries, employers feel they have a duty to include workers on the board of directors to assist in forming company policy. For many years, Japanese employers have offered their workers lifelong employment, although this practice has become less widespread in recent years.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Preparing a Resume


All job applicants need to have information circulating that reflects positively on their strengths. That information needs to be sent to prospective employers in a format that is understandable and consistent with the organization’s hiring practices. In most instances, this is done through the resume.

No matter who you are or where you are in your career, you need a current resume. Your resume is typically the only information source that a recruiter will use in determining whether to grant you an interview. Therefore, your resume must be a sales tool; it must give key information that supports your candidacy, highlights your strengths, and differentiates you from other job applicants.

It is important to pinpoint a few key themes regarding resumes that may seem like common sense but are frequently ignored. If you are making a paper copy of your resume, it must be printed on a quality printer. The style of font should be easy to read—Courier or Times New Roman. Avoid any style that may be hard on the eyes, such as a script or italic font. A recruiter who must review 100 or more resumes a day is not going to look favorably at difficult to read resumes. Use an easy to read font and make the recruiter’s job easier.

It is also important to note that many companies today are using computer scanners to make the first pass through resumes. They scan each resume for specific information like key job elements, experience, work history, education, or technical expertise.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Constant Challenge


This is clear when you consider how people find jobs in the first place. For many people their whole career history is laced with luck and chance: being in the job market when a certain company was recruiting, seeing a certain advert, knowing someone who knew someone. Many people not in a true vocation have little real idea about the job or company they start working for before they actually start the job.

Some people pick losers and are repeatedly made redundant, or take several jobs before they find something that fits. Other people pick winners in the job lottery, walk into their first position and stay there all their working life.

Nothing wrong with that from a personal point of view, but the last thing these people want to do is rock the best by pushing themselves or indeed anyone else (except those lower down the pecking order) out of their comfort zones.

This inevitably creates stuffy, complacent business. What incentive is there for these people to take risks or leave when they don’t think they will ever find another job half as cushy as the current one?

What is more, when an employee has several years of service under their belt, disgruntled employers will duck this issue, thinking that they will be too costly and difficult to move on.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

The Circular Flow


In a simplified world with only two types of economic agents, individuals and business firms, the relations between them can be pictured. Individuals and firms have dual aspects, and thus transact with one another in two distinct ways. Individuals are in one aspect consumers of goods, while firms are producers of goods. Thus, a real flow of consumption goods occurs from firms to individuals. But the goods must be produced. To permit this there must be a “real” flow of productive services, from the individuals in their second aspect as owners of resources to the firms as employers of resource services.

In a socialist command economy these flows of goods and resources might be directly ordered by a dictator. But in a private enterprise economy the relations are based on exchange and so must be mutual and voluntary. Hence, offsetting the “real” flows are reverse “financial” flows of claims that in a modern economy normally take the form of money payments. The consumers’ financial expenditures on goods become the receipts or revenues of the firms. The exchange of consumption goods between individuals and producing firms in return for financial payments take place in what economists call “the product market.”

The revenues received from sales to consumers provide firms with the wherewithal to buy productive services from resource-owners. This closes the circle; the firms’ payments for productive services become income to the individuals, available once more for spending on consumer goods. Purchase and sale of productive services take place in what economists call “the factor market,” again really a number of distinct markets for the various types of productive services.

Looking within the box representing the firms as economic agents, what takes place there is the process of production, the physical transformation of resources into products. Within the box representing individuals, consumption of the produced goods takes place. Here again the circle is closed by the fact that consumption is necessary to reiterate the main productive resource—labor power—for the next cycle.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

The Employment Market


The employment market comprises all those people who are available for work. The market is affected by national or regional supply of and demand for appropriately  skilled employees. It is constrained by demographic factors such as the number of young people leaving schools and universities and by cultural variables such as expectations  for mothers to stay at home looking after children.

The employment or job market is the ultimate source of all new recruits. Human resource managers need to understand the dynamics of this market in order to deal properly with resourcing, set competitive salaries and obtain people with essential skills. They need to understand the expectations of prospective employees and have an insight into issues such as:

o     Why do people work?

o     What conditions and salaries are they prepared to work for?

o     What expectations do they have of employers?

o     How does the availability of human capital affect employment levels?

o     What effects do the activities of competitors have on employee availability?

o     What patterns of work are replacing traditional nine-to-five jobs?

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

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