The paper 'Impacts of Liberalization of Labor Markets' is a good example of a Management Essay. Labor markets are essential in the economy of any country. They determine the level of growth of any country by addressing the challenges that affect employers and employees. The concept of liberalization of labor markets has been an issue f concern among many nations. In this case, the liberalization of labor markets allows employees and employers to have free will of working and looking to 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. On most occasions when the employees foresee exploitation by their employers, they go to the streets to seek justice. Market liberalization has significant impacts on the production of a company. For example, companies that engage employees in decision-making have a 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 labor 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 production. 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 to use 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 into 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 showcase 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.
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