Sample Essay On Global Competition In The Banking Industry
Owing to the dynamic business world, it is crucial that an organization is updated on the various adjustments it should make so as to keep making profit. In the banking industry, for example, the management is faced with tough decisions regarding the supply and demand changes in the labor market, changes in regulations, unions and relations. In order to survive in the competitive banking industry, the managers must make decisions that are in line with requirements in the industry and also they should ensure that they do their best to give their customers more satisfaction than they expect. This requires intensive and regular research on the ground so as to have a picture of how the decisions they make may impact on the success of the business.
Labor supply and demand may shift due to various reasons. The labor supply can be defined as the number of hours that workers are able to put into the job and this can change due to changing demands of employees in terms of salary, population, and the level of prices of goods and services (Schwab, 2010). For instance, if the population increases, the number of workers increases, therefore, even if the management does not increase the wages, they still get employees who are willing to work. Likewise, when the demand for labor rises, the management may make decisions to increase the amount that one earns but in cases where the demand for labor drops, the wages drop a well. The management has to ensure that the company meets the regulations on labor for example regarding providing the employees with protective clothing and giving them salaries that are not below the minimum wages. The management decisions on employees are sometimes influenced by the unions that they belong to since the unions act as the employees’ advocates.
Schwab, K. (Ed.). (2010). The global competitiveness report 2010-2011. Geneva: World Economic Forum.