In the context of your firm, discuss two factors that would increase your demand for labor
It is undeniable that most firms require labor to produce output. In this case, they can not produce any output without using labor. As a matter of fact, the number of workers that an organization will hire is an important decision that needs to be critically evaluated and looked at for long term sustainability.
The number of workers is important because it affects the costs and profits that a given organization will get (Head, 2005, p. 12). Therefore, it should be known that there are important factors that will affect and increase the demand for labor. In this case, the firm can not increase its labor force unless these underlying factors are existent.
The demand for labor will be increased by a high market demand for the company’s output and products. When a company’s output and products are on high demand, it means that production has to be increased. A firm can not increase its production with its current number of employees and this means that more workers will be hired to correspond with the increase in demand for its products.
Another factor that can lead to an increase in the demand for labor is the firms’ expansion (Budd, 2004, p. 19). If the company is expanding, it will need to hire more workers who will be in charge of its new ventures. This is quite obvious because every company must expand as time goes by and this means that it will have to increase its labor force.
If the market price of the good or service that your firm produces increases, what would happen to your demand of labor?
If the market price of the good or service that a firm produces increases, there will be a notable impact on the demand for labor. In this case, the company’s products will be fetching good money in the market and this means that revenues will increase.
When a company’s products are attracting a good market price, it will always want to increase sales through an intensified production of goods and services (Head, 2005, p. 23). In this case, the market price can increase because there is a large demand for the goods and services.
Every firm would want to get the best price for its products and this is the only opportunity to get as much sales as they can. The only way that the company can achieve this is to hire more workers that will enable it to satisfy and meet this increase in demand.
Therefore, it can not occur that should the market price of the goods or services increase, the company will embark on reducing its work force. It only arguments well that if the market price increases, a firm should respond by hiring more workers (Budd, 2004, p. 29). In this case, the demand for labor will increase and go up.
What specific skills do you think your workers should have? Why is this important?
Workers should have specific skills that will enable them to accomplish their tasks without any problem. This is necessary for them to go about their activities. Workers should have communication skills because they are critical in any business (Budd, 2004, p. 45). In this case, they should be able to listen and communicate well with others.
It is good for workers to have leadership and management skills in any organization. These skills will enable them to take charge of themselves and other co-workers and thereby discharge their duties well. Teamwork is an important skill that every worker needs.
This is because there might be areas where workers are needed to work together as a group in the accomplishment of various tasks (Budd, 2004, p. 71). In this case, a worker should be in a position to work with others in a professional way and manner. This will enable them to accomplish their tasks and goals without any problem.
Reference List
Budd, J, W. (2004). Employment with a Human Face: Balancing Efficiency, Equity, and Voice. New York: Cornell University Press.
Head, S. (2005). The New Ruthless Economy: Work and Power in the Digital Age. Oxford: Oxford University Press.