Essay Sample on Maximizing Value and Efficiency: How Companies Manage Labor Costs

Paper Type:  Essay
Pages:  3
Wordcount:  564 Words
Date:  2023-04-08

As companies tend to enlarge their operations and bring in new employees, many factors are taken into accounts, such as economic factors and environmental factors. The cost of labor is one of the primary concern as labor generally aggregate a large part of the company budgets. The company has to look into consideration the skilled and unskilled workforce offered by the employees, which contributes to the production of quality goods and services. The organization tends to invest more labor through unions, thus making the labor work efficient and enabling the creation of the best quality. The wages of unionized workers are significantly higher than the payments of nonunion in almost every business. Higher salaries of unionized workers can generally result in reduced company income, lower share prices, and reduced shareowner returns. Unionized also reduce employers' easiness in regards to hiring, relocating, or upgrading employees. This email is aimed at providing information to the planning committee for the new plant to offers advice with regards to the plant size, location, staffing, wages and benefits, and other employee relations issues to shield the company against the adverse effects of unionization.

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Large plants with many employees are hard to arrange, but also often hard to manage using desired human resource management strategies. On the other hand, plants with fewer employees tend to be easier to organize and obtain agreement on issues but may not provide companies with allowable levels of productivity and return funding. Therefore the medium plants are the best to implement in that they provide the best labor environment in which to avoid unionization. The planning committee recommends that the new plant be located in a rural area. Union activity and membership are least prevalent in rural areas. Workers in these areas are less likely to have the previous conversance with unions and may be less open to them. Further, plants located in such regions allow less opportunity for workers to compare their wages, benefits, and working conditions with that of unionized workers. The lack of a strong union presence makes the rural area an excellent place to establish a new plant.

Finding the right location for the company is essential in establishing the organization's ability to flourish and expand the plant operation. Many attributes to keeping a union out of the organization, following specific guidelines of the committee, should warrant successful results. When a single market is created alongside its fellow member countries, four freedoms are introduced consisting of movement of goods, services, people, and capital without restriction between countries who are members. The planning function of management provides goals, plans, direction sand. It defines duties in any organization. Many types of programs must be put into consideration, such as strategic, operational, skillful, and uncertainty plans. Each one of these types allows an organization to have multiple methods to play different parts to achieve an overall common goal. In addition to a limited existing union presence, it is also offered with support, which is a union-free goal.

In conclusion, the company has an obligation to ensure the employees' needs are well attended to. It should ensure that they are fairly compensated and rewarded for their input in the organization. The organization should put into consideration the economic factors and environmental factors that help to creates a link between an employee's attitude and the actual work performance that has been found to be somewhat inconsistent.

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Essay Sample on Maximizing Value and Efficiency: How Companies Manage Labor Costs. (2023, Apr 08). Retrieved from

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