Resource Management Improvements

Table of Contents
1.0 Introduction ................................................................................................................... 3
2.0 Challenges that hinder “WeWork Inc” productivity and performance ............ .. 4
2.1 Challenges in respect of failing to safeguard the stakeholder’s interest .......... 4
2.2 Challenges of leadership ............................................................................................. 5
2.3 Challenges of resource management ...................................................................... 7
2.4 Challenges in finance ................................................................................................. 8
3.0 Improving WeWork resource management to enhance production
and performance ............................................................................................................... 10
3.1 Sustainable Leadership ................................................................................................ 10
3.2 Resource Management Improvements ..................................................................... 11
3.3 Products & Process Improvements ............................................................................ 12
3.4 Organizational culture rebuilding process ................................................................ 14
4.0 Conclusion ........................................................................................................................... 16
5.0 Recommendation .............................................................................................................. 17
6.0 Reference ............................................................................................................................ 18
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1.0 Name two economists and their contribution to the field of modern
macroeconomics
1.1 John Maynard Keynes & Adam Smith
John Maynard Keynes, a British economist, led a shift in economic theory that disproved the
then-dominant notion that full employment would be produced by free markets automatically,
i.e., that everyone would have a job as long as workers were flexible in their wage demands.
Prior to Keynes, the majority of European economies—and unquestionably the US—had relied
on Adam Smith's idea of free markets and the invisible hand. The expansion of capitalism was
generally beneficial to the nations that embraced it; as it should have, it created incentives for
creativity and a commitment to hard effort. However, it also brought about a boom-bust cycle,
which caused the economy to contract periodically and cost people their money and
employment. Keynes hypothesized that there might be a more effective strategy for
governments to influence the economy, one that would contribute to taming the bust-causing
economic cycle.
Keynes advocated for governments to actively participate in economic management. He
thought that governments may affect interest rates by participating in the bond market as both
buyers and sellers. Governments can encourage or dissuade people from saving money by
affecting interest rates. If the economy was having trouble, the government may purchase
bonds to lower interest rates. Because people could borrow money so cheaply and because
they wouldn't be able to generate much money on their savings, there would be more
spending, which would lead to economic development.
On the other hand, if inflation started to rise too quickly and the economy started to grow too
quickly, the government could sell bonds to remove money from circulation and raise interest
rates, which would encourage people to save money rather than spend it. Keynes firmly felt
that intervention might abolish, or at least substantially lessen, the severity and frequency of
economic busts, but his proposal needed ongoing monitoring and action by a centralized bank.
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2.0 Why Keynesian school of macroeconomics different from classical thought of
economics
John Maynard Keynes considered the government and economists should periodically assist the
economy, in contrast to the classical economics who hold that the economy is, for the most
part, self-correcting and free markets leading to an efficient outcome along with self-regulating.
Long-term economic growth (long run aggregate supply curve is inelastic); therefore any
deviation from full employment will only be temporary is a component of the classical model,
whereas short-term economic growth is a component of the keynesian model.
Also the classical model emphasizes how crucial it is to maintain government intervention to a
minimum and work to keep markets free of any potential impediments to their effective
operation. Keynesians contend that because markets are flawed, the economy can function
below capacity for a long period of time. Keynesians emphasize the importance of government
involvement (expansive fiscal policy) in overcoming recession.
Keynesian View Monetarist view
Fiscal Policy In recession, expansionary
fiscal policy can stimulate
economic activity
Fiscal policy causes no long-
term increase in real output
Wages rigidity Wages can be sticky
downwards causing
unemployment
In absence of min. wages
/trade unions wages flexible
Unemployment Demand-deficient
unemployment big causes
Tend to emphasis supply-side
unemployment (natural rate)
Philips Curve There is a trade-off
between unemployment
and inflation
Only a trade-off in the short
term
Government borrowing In recession, government
should borrow more to
offset fall in private
spending
Government should seek to run
balanced budget
Crowding out No crowing out in
recession
Government borrowing causes
more crowding out
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3.0 Increase in real GDP is often interpreted as increase in welfare. What are
some problems with this interpretation?
Government pays close attention to real GDP, often behaving as if greater GDP the better.
However, real GDP is not the same as economic well –being. At best, it is an imperfect measure
of economic well-being because, for the most part, it captures only those goods and services
that are priced and sold in markets. Many factors that contribute to people’s economic well-
being are not priced and sold in markets and thus are largely or even entirely omitted from
GDP. Maximizing real GDP is not, therefore, always the right goal for government policymakers.
Whether or not policies that increase GDP will also make people better off has to be
determined on a case-by-case basis. To understand why an increase in real GDP does not
always promote economic well-being, the following factors which are not included in GDP but
affect whether the people’s welfare must be taken into consideration.
Real GDP is at best an imperfect measure of economic well-being, among the factors affecting
well- being omitted from real GDP are the availability of leisure time, nonmarket services such
as unpaid homemaking and volunteer services, environmental quality and resources
conservation, and quality of life indicators such as low crime rate. The GDP also does not reflect
the degree of economic inequality in a country. Because real GDP is not the same as economic
well-being, proposed policies should not be evaluated strictly in terms of whether or not they
increase the GDP. Although GDP is not the same as economic well-being it is positively
associated with many things that people value, including a higher material standard of living,
better health, longer life expectancies, and higher rates of literacy and educational attainment.
This relationship between real GDP and economic well-being has led many people to emigrate
from poor nations in search of a better life and has motivated policymakers in developing
countries to try to increase their nation’s rates of economic growth.
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