STRATEGIC MANAGEMENT Essay Example | Topics and Well Written Essays - 500 words - 1

STRATEGIC MANAGEMENT - Essay Example This usually happens when the organization is not in a position to manage the human resources or due to the worse business condition or depression in the economy. The termination of the employees from the organization is an emotional event for all the employees who are thrown out of the organization and who are still working in the organization. This is a major problem faced by the people in the economy as due to the worse economic recession. Many reputed firms were forced to put their talent employees due to this reason. This made the employees to lose their trust on the organization and this lead to low productivity in the organization. This also led to the decrease in employee morale. The important measure that has to be taken for this is to make employees aware about the reason for what they are being moved out from the organization. The â€Å"guidelines will help companies handle layoffs in a way that affords dignity to those let go and reassures survivors that the downsizing decision wasnt made arbitrarily† (Robbins, 2009, para.2). This will help in creating a positive attitude among the employees towards the organization. This will create an optimistic approach among the employees and will increase the overall productivity if the employees. Special care has to be given on those employees who still have a fear in their mind that they might lose their job. This fear will decrease the productivity of the employees. It is the responsibility of the organization to remove the fear and make the employees to be productive at his best. Manager should often communicate with the employees regarding the work performance and necessary instructions have to be given for increasing their productivity. â€Å"Discussing and acknowledging the companys position is the first step to keeping people involved — and co mmitted to solving problems they understand† (Robbins, 2009, para.3). When the company realizes that the layoff is important then prior

Recent Development in the Thoery of Rules versus Dicretions Essay

Recent Development in the Thoery of Rules versus Dicretions - Essay Example In this respect, this essay will assess the rationale in the Barro-Gordon Model of rules versus discretion to illustrate the relationship between monetary policies and inflation in achieving economic outcomes. Monetary policies play a crucial role in achieving certain outcomes – low unemployment, high money supply, or low inflation – in the economy. Achieving these outcomes, however, depends on the existing conditions surrounding the economic environment, which is also affected both by an individual’s expectations on future policies and economic conditions and the manner that these expectations are formed (Barro 1984: 1-2). The weight given to individual expectations, in this regard, highlights the monetary rules versus discretion debate under monetary economics such that as illustrated by the Barro-Gordon Model, an individuals’ expectations regarding future policies can either offset the effects of inflation under discretionary policies or achieve the zero inflation outcome through rules (Barro and Gordon 1983). Contrary to the traditional debate between rules and discretion focused on a policymaker’s capabilities and objectives; the Barro-Gordon Model is based on Kydland and Prescott’s work that identifies rules as a form of commitment similar to public policies and business dealings (Barro 1984: 1). In this respect, a monetary policy will only be as effective as the government’s reputation and its credibility in making a commitment to a policy because assuming that individuals are rational, they will always act in manner that predicts government behaviour and compensate for any losses that they believe will come from it. Hence, under monetary policies, where the output is always a consequent rise or fall in inflation, assuming that inflation is high and individuals are rational, these individuals will always expect a higher inflation rate and immediately adjust to these high rates, eliminating the