Liberty University Global Economic Environment Discussion

Description

Book used for class is Managerial Economics and Business Strategy by Michael R. Baye & Jeffrey T. Prince. ISBN 978-1-260-94054-1
Submit a thread response to the following discussion post (MV):
As an employer wants to reduce the production cost during the economic recession, he/she could choose to (1) lay off some workers without changing wages or (2) keep all workers but cut wages for all. Which method would you choose? Why?
As an employer, if I was addressing an economic recession and needing to make cuts. I would be really honest with the entire staff. I can lay some people off or everyone can take a pay cut/hour reduction. This would allow them to know the full scope of the situation we as a company are facing. The most important thing one can do is be as honest as possible with the employees about the current financial state of the company. People want to know where they stand and not be worried about the unknown. This is why honesty is so important in management employees depend on management to make the right decision. “In the corporate world, surprises can have especially unfortunate consequences. Sharing information within the organization makes for more stable operations” (Craig, 2020, para. 8). When a company can stabilize the workforce, it leads to a more profitable and stable organization. Employees want to know that their management can be trusted and that is why honest conversations are so important.
The importance of being transparent with employees is a new idea for the most part managers operated in the dark. However, scripture would tell employees it is important to be fair to your workers. Scripture states, “You shall not oppress a hired servant who is poor and needy, whether he is one of your brothers or one of the sojourners who are in your land within your towns” (Deuteronomy 24:14, ESV). It is important the needs of the worker are placed at the forefront of every conversation when the discussion is about eliminating positions or reducing wages. Keeping an employee-focused perspective is important when making decisions that affect the overall decisions in regard to their employment and wages.

Explanation & Answer:
250 words

Tags:
Production cost

Global Economic Environment

Managerial Economics and Business Strategy

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