Labor market liberalizationIntroduction Liberalization of labor market means changing the labor market to become more of a free market than it was before. That means that employees or laborers are free to move from one organization to another that makes them comfortable. Labor market liberalization means opening up of the labor market and not locking it out like before (Barrow 1996). It also means that organizations are free to hire employees who meet their specific qualifications without any restrictions. With the liberalization of labor market, the rights of employees are important and arte given priority. The rights are inclusive of the working conditions, the salaries and other benefits that they should enjoy while working in the work place.
Liberalization of the labor market has had an impact on organizations, both positive and negative impacts. However, the positive impacts outdo the negative impacts hence; making it beneficial to organizations. The reforms have led to the liberalization of labor market which has been a benefit to many parties like the organization or the work place (Pace 2002). This is because it is now easy to hire employees with the right qualification.
It is about making the labor market e free market for the organization and the employees. The government and the economy are also beneficiaries of these reforms. It has an impact on the wages of employees in the organization. This is because through this liberalization led to an increase in the wages and salaries of workers due to the rights that employees have. There has been an increase in the incomes of employees due to the reforms on the salaries of employees (Evenett & Hoekman 2004).
There is employment of more employees in organization due to these reforms in the labor market. Market like arrangementsCompetition. In regards to Bruce (2006). It is the examination of strength and abilities of people or employees in a work place with the aim of improving the quality of work in such organizations. It is competing with other members of the same organization for a certain prize like bonuses or salary increments among other benefits. Competition is the rivalry between more than one firm to increase efficiency of their products and effectiveness.
The rewards of competition are meant for the winning or the best employee at our work place so that there is motivation for all the employees. Our work place uses direct competition among the employees in that employees are given a goal to achieve and they compete to achieve them. Our work place does not, however, encourage completion amongst employees because it creates rivalry. The completion here is against the set goals and not which employee is the best or the worst. It is about which employee meets the level of standards set in terms of the production or service levels.
It is through this completion that we form a basis of rewarding the employees according to the ones who achieve the objectives have set. The aim of using this arrangement in our work place is to provide motivation for the workers in achieving the objectives of our organization. Our work place implements this arrangement by setting a certain level that the employees should meet at a given duration of time. For instance, we set the level of producing a given commodity to be 500 units at end of every week.
Our organization also sets the kind of reward that it gives to the employees who reach the target they have set (Nelson, D. L & Quick, J. C. (2010). There is a reward for the employee who meets this level. These rewards act as a motivating factor for the employees.