Managing Financial Principles Analysis

Running Head: Managing Financial Principles
1
Managing Financial
Principles and
Techniques
Student Name
3/5/2020

Running Head: Managing Financial Principles
2
Question (ii)
Answer:
Labour Shortage is a huge problem that every organization is facing. The reduced income growth
has caused the shortage of labour and this affects organization as well as the economy. There are
direct effects of labor deficiency on the profitability of an organization. The organization must
adopt structural changes to diminish labour scarcity. However, there are some steps which can
address the issue of labour shortage in an organization are as follows:
 The organization must focus on alternatives to replace labour needs. There are many
other substitutes available in the market therefore, the organization should search for
them.
 Create a healthy and safe environment to engage more employees, a safe and eco-friendly
environment will increase more employees’ retention and will lead to improvements in
the profitability of an organization. Moreover, an eco-friendly workplace will make
workers comfortable in their work.
 At regular intervals, an organization should appreciate their employees with rewards or
incentives for their performances. This will motivate employees and they will perform
their best. This is the best strategy to retain an employee for a longer period.
 Managers should outsource the production to a third party or outsiders. This will reduce
the workload in an organization and will make employees relax. Also, there will be no
burden on the hands of employees and they will free. The outsourcing of production will
estimate low cost which means profit will increase (Bateman, and Weiss, 2017).
 Moreover, an organization can relocate its production structure at some other place. This
will diversify the work into many other places. Thus, at each place, the requirement of
labour will be minimized and this will lead to smooth and fast work.
 The organization should utilize its existing workers for extra work by paying them an
extra amount. The already trained workers will work more efficiently instead of new
workers therefore; work will be conducted effectively and efficiently.
 The organization should explore different avenues and ways to manage things. There are
high complexities in working conditions therefore, the organization must try new things