Economics Theories and Principles Frictional Unemployment - 1100 Words

Economics Theories and Principles: Frictional, Structural Unemployment (Coursework Sample) Content: NameCourseInstitutionLecturerUnemployment has been a challenge in both the developing and developed countries. Research and other initiative have been taken by the government to ensure that the situation has been curbs. However concrete solution to the same have not been realized. In order to solve the problem of unemployment it is important to know the categories of unemployment in order to find the policies and strategies that should be taken to resolve the issue. These types includes frictional unemployment, structural unemployment, cyclical unemployment among othersFrictional unemploymentThis the type of unemployment comes during the transition of on job to another. This is caused by inevitable delays in time when someone is looking for a more suitable job. This is common in a free job market economy. It also refers to the period of time that one takes while searching for more new jobs. This type of unemployment is short term. The in most cases it happens due to g eographical and occupation mobility. This type of unemployment in an economy is considered good as it happens as people try to shift to a more productive areas.Structural unemployment.Structural unemployment occurs due to luck of capacity and skills to perform a task. Every job requires specific skills. Jobs that requires technical expertise will only be done by specific people. For this reason people without the specific skills will remain jobless. It is a long term problem as the employers will not take the unskilled to perform the task.Cyclical unemploymentThis type of unemployment occurs due to the economic business cycle. The job losses are caused by downturns and also contractions cycles of a business or economy. This type of unemployment is dependent to the consumer demand. During the sessions of low demand there is loss of job as the business profit margins are very low. This type of unemployment is most dangerous as it may cause bankruptcy in an economy.For this reason cycl ical unemployment is the most dangerous type of unemployment and every economy policy makers should find out ways to avoid it.Inflation is the persistent increase in commodity prices and it is characterized by the loss of value of money in an economy. Inflation is associated with costs that are oppressive to the economy. The economy experiencing inflation will have the following consequence; there is a possibility of reduction in international competitiveness. A country experiencing inflation will have their good being less competitive in the international market. The exchange rates therefore will be on a decline hence low input from exports. The second effect is confusion and uncertainty of the future. People may tend to hold money due to the uncertainty in the future expectation. For this reason people may fear to put investment due to fear of future losses. Consequently the economy will experience retarded economic growth. The third effect is that the economy may have booms and b ust economic cycles. In most cases high inflation is followed by recession. Keeping inflation low encourages economic growth. Other effects includes fiscal drag and income redistribution. High inflation discourages business investors as persistent increase in commodity prices increases the production cost and the consequence is low profit margins.Transfer payments are those payment that are made when no good or services have been delivered. On the other hand the gross domestic product are incomes that come from productions made in an economy. For this reason the transfer payment cannot be included in the GDP because the origin of the income is not based on production. The GDP of an economy is therefore given by Y= C + I+ G+(X-M).Buying an Italian purse means you have increase the import. The Italian purse is made imported good and therefore the balance of payment will be altered. On the other hand when someone buys a new house the proportion of consumption increases. The house is a consumption good therefore the consumer pays for the good. When new lanes are added to interstate 40 the amount cash is spent for development purposes therefore the amount spent goes to the government expenditure component. When someone buy a groceries the cash is entered in the investment expenditure. The grocery is purposely for business therefore the business that will be there will earn some income. New washer and a drier are consumable good therefore it will lie in the consumption component.The tax refund increases the consumer purchasing power hence the demand curve will shift to the right.The quantity demanded will increase by (Q2-Q1). This will cause the prices of the commodities to increase to P2 thus fetch a higher profit to the investors. A price increase will attract more investors in the economy. Therefore more goods and services will be brought in the market. The improved profit margins will therefore improve the economy real wealth. This will be as a result of increas ed investment by the new investors who enters in the market.According to classical theory the wages and prices of a commodity are subject to demand and supply forces. This supports the Says law which state that the supply creates its own demand in the sense that if more goods are supplied into the market the demand will go down thus affecting the supply of the commodity in question. Says law argue that prolonged unemployment may not happen in long run classical model. The adjustments in prices interest rates and wages ensures that the workers and the economic resources are fully employed. According to the classical model, wages, interest rates and commodity prices are flexible and can adjust in case of rise in aggregate demand.The change in a...

The Organization, Job and Recruitment Plan Analysis - 1100 Words

The Organization, Job and Recruitment Plan Analysis (Essay Sample) Content: Recruitment PlanNameInstructorCourse codeInstitutionDate 1 IntroductionAs competition increases, companies find it difficult to hire high-qualified and competent employees. Today, staffing in human resource is one of the most important management functions because it directs a firm towards efficient management of many other functions. Staffing is defined as the process of selecting, correctly training, rightfully rewarding capable employees to attain business objectives (Shamis, 2015). Similar is the case with Technosoftware Company as it also seeks a qualified employee to help in the production and introduction of their new product, RavWeb. A recruitment plan is a vital strategy that will enable the company to target the most appropriate recruiting sources, and eventually the most suitable candidate for this job. 1 DescriptionThe description of Technosoftware, the job, and the reward package will be included in all the recruiting sources so that candidates can famili arize with the firm, what is expected from them, and how much they will be rewarded for getting the job done, before applying. 1 The organizationUnlike other entrepreneurial organizations that are developed out of success, three frustrated, but ambitious computer experts- Walter, Darrell, and Benjamin, created Technosoftware Company. The company focuses in the development of software for business applications. Currently, the company is in the process of launching RavWeb, an on-line software package that the three founding fathers think will be a revolutionary product. For successful product launch, the company needs to hire a full time, professional staff member to work with the three computer experts. 2 The JobThe company wants to hire an employee that will be involved in every phase of the product management and product introduction that includes packaging, user manual writing, positioning strategy, pricing, promotion, product announcement, advertising, and sales. The candidate should be familiar with personal computers, willing to do clerical works such as typing, highly motivated, and self-sufficient. A degree in a technical field will be highly recommended and candidates with the right experience will be at an advantage. 3 Reward PackageThe first thing that the candidates should know is that the firm is small and for a start, the employee will be awarded $65,000 annually. However, if the sales of the new product, RavWeb, increase the company will reward a 20 percent bonus. Unfortunately, the company is currently not in the position to offer any health insurance or pension plan. More so, the employee might be required to work long hours, weekends, and during legal holidays.2. Recruitment PlanSince this will be Technosoftwareà ¢Ã¢â€š ¬s first fulltime employee, the company hopes to target highly qualified candidates and can only do so using recruiting sources that can attract the best candidates. The internal sources, in the case of Technosoftware, are irrelevant because the company has no employees that can be promoted or upgraded for the job. Hence, the external sources that will be used include employee referral, newspaper advertising, internet job boards, and the companyà ¢Ã¢â€š ¬s webpage. 2 Employee referralReferrals are one of the largest recruiting sources for hires. A current study shows that 39 percent of the companies that actively communicate job opportunities to their current workers and encourage referrals hire the right candidate that suits the job description (Pratt, 2015). This is so because A-players that are talented and motivated surround themselves with A-players with the same qualities. Hence, the company will encourage their part-time workers to communicate the opportunity to professionals that suit the job description. Referrals, as recruiting sources, have some benefits such as faster time to hire. A study shows that it takes a maximum of 28 days to hire a refereed candidate and ten more days (39) to hi re one through a site (Pratt, 2015). More so, it is relatively cheap because no recruitment fee is required. Candidates that are referred by a current or former employee have a smoother time adapting to the companyà ¢Ã¢â€š ¬s culture because they gain insight from the person that referred them, hence easy transition. On other hand, when a company heavily depends on employee referrals, it can lead to charges of discrimination from the candidates that are rejected. In addition, dependency on referral programs can encourage an attitude of stick together that hinders the growth of ideas (Reddy, 2015).2.2 Newspaper AdvertisingBefore the introduction of the internet, people were reading newspapers for new job posting and this tradition still exists even in the current internet era. The newspaper is an effective recruitment source because it can attract a large number of people from diverse backgrounds with various talents that might be useful to the company. The secret of using newspa per advertising is to place the ad in the right newspaper, right column, and on the right days to target the majority candidates (Tobbin, 2012). The biggest advantage of this medium is the wide distribution within the targeted location. Furthermore, many newspapers these days display the companyà ¢Ã¢â€š ¬s websites for additional information and distribution. However, the major con is that the number attracted to the ad can be very large, which leads to many unqualified candidates. On top of this, newspaper advertising is decreasing its popularity and has a short lifespan, a day, or two, which can be very expensive (Tobbin, 2012).2.3 Internet job boardsDue to the increased use of the internet and social media platforms, many jobseekers are turning to the internet to seek employment. Therefore, including an online recruitment source is important to find the right candidates. Internet board can be either paid or free; Monster and Workpolis are boards that will require the organizat ion to make payment before posting the job position. If the organization wants to cut down costs, it can use Job Bank board and advertise the position free of charge. The main advantage of internet boards is that many people will see the ad since most job seekers are using the internet to find their dream job, which can increase the time to hire the most suitable candidate (Tobbin, 2012). However, similar to print ad, the organization can receive many unqualified resumes due to the high number of people viewing th...