Decision-Making in Business: Factors to Consider - Essay Sample

Introduction

During a business venture, there must be decisions to be made. However, the decisions influence the government either positively or negatively. Some also have both impacts. Therefore, before coming up with any policy, a lot of factors must be taken into account to determine whether it is best for the company or not. Besides, each company seeks to be the best and sometimes it is affected by issues which it must address. Sometimes these issues entail short term policies to cover up for the issues for a short time while others are long term to address issues for a long time. Employees are also affected by these problems. In this particular essay, all this will be clearly brought out and with how it affects the company and the individual in the long run.

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In addition, a strategy like hiring new permanent employees is a long term project. The employees experience job security, which they could not have felt if they had been employed on contract terms. Permanent employees also have the motivation and therefore work hard to perform at their level best so as to advance their career with the company (DeVaro, 2016). The company also uses fewer funds in each time recruiting and training the new recruits. However, in the long run, it is expensive for the company as they must incur cost due to retirement benefits. Also, sacking of permanent employment is also expensive. Hiring back retirees on a part-time basis is good as they bring back experience and even help nurture the young employees. However, they also have their own limitation, such as the recent technological advances can be a challenge to them. They believe in their olden methods of doing things and are resistance to the changing dynamics being experienced in the industry.

Basically, any organization with a high employee turnover brings forward a negative perception to the public. A low turnover ensures money is saved in that there is no hiring and educating new employees each time. It also ensures confidence in investors and customers that the company is on the right track. The productivity of new employees is also low as they still to familiarize with the new environment. However, it can also have its own challenges such as diminishing performance from current employees due to lack of competition and lack of new talent to come up with new skills to perform duties (DeVaro, 2016). The hiring freeze is meant to reduce cost mostly and is mostly experienced when the company has financial duress. It results in lack of new positions being created. The company is able to cut down most of its excess expenditures and maximize its profits. However, the employees are faced with more job duties as they have to fill up the gaping void without the company hiring.

Moreover, the company can reduce work hours. For obvious reasons, this brings about motivation from the employees, and they perform their duties in a better way. It ensures a reduction in expenses while still raising profits (Klimovsky, 2017). However, the company can experience discontented employees and in most cases, loss of sales. Employee training seeks to impact the workers with skills and knowledge to perform functions better. It enhances better system delivery as the employees can build up as a team. It also seeks to reduce cost from hiring each time. However, in the case of an employee quit from the company, they can take a skill to the competitor and the price of training is not low either.

Conclusion

All in all, all measures must be undertaken so that there can be smooth operation in an organization which offers enhanced services. The motive of the company must also be met, and it mostly entails proving services while still making huge profits. The above strategies must, therefore, be taken into significant consideration and all times when trying to use any of them. As demonstrated, they have both their positives and negatives.

References

DeVaro, J., (2016). Internal hiring or external recruitment?. IZA World of Labor.

Klimovsky, D. (2017). Participatory Budgeting.