Contributions of the Hellenic World

At the heart of stagflation is the accepted practice of tying employee pay to factors that atomic number 18 outside the firm's assure (such as cost of living). The firm's own mathematical process (and thus the employees' performances) argon not reflected in the watercourse compensation matrices in office at most American companies. Instead, tying an employee's salary to the performance of the community will result in increase productivity, increased earningss, and increased gross national product.

Having presented his core solution in the first three pages of his text, Weitzman devotes the remainder of the book to justifying the solution and offer examples and illustrations of how his new compensation package could be employ. Expecting apology, he begins by examining corporate America itself and the major decisions that totally companies face.

All companies must(prenominal) decide how much to obtain, how much labor to use to make it, and the price to charge. Weitzman incorporates economies of scale into his argument (11) to suggest that mass intersection is characterized by declining average costs over the long run. By suggesting a lower overall wage, but including employees in profit sharing strategies, there would be lower prices, more product and higher employment (21).

What Weitzman is proposing (and the source for the title of his book) is a touch method of compensation rather than a wage-based system. Wages are ind

What Weitzman's concepts lead to is a bring to pass and thorough revamping of the American economy and contriveplace. On the one hand, workers would be encouraged to be inject more productive and such increases in productivity would be recognized by increased compensation. Presumably, the salaries of head executives, which have received much recent attention, would eventually come closer into alignment with their Japanese counterparts (which are significantly lower) as increased pressure for profitability carries up from the rank and lodge workers. Workers would be more likely to encourage productivity and blueprint that would enhance profitability, and workers would use peer pressure, rather than relying on focussing discipline, to bring nonproductive workers into line.

Since a share economy would imagine the demise of the large cores, such a compensation twist is likely to encounter strong opposition from current union leaders. Because the compensation program would possibly result in cut down individual compensation for managers, there is likely to be resistance from that group, as considerably. As a result, bringing about a share economy is likely to be difficult, despite Weitzman's well thought out and well presented arguments.

There are some other ramifications, as well. The need for unions, for example, would disappear, at least in their current configuration. Rather than having unions based on occupation, unions representing all workers in a single company are likely to develop since all workers have a stake in the way the compensation program is structured. Such unions would be more likely to work in concert with management since the overall goal of the company -- higher profits -- would be the overall goal of the workers, as well.

The biggest obstacle to the share economy is one that Weitzman himself presents in his finish chapter, and that is the ability to implement his compensation structure. Can it be implemented? According to Weitzman, it can be put into
Ordercustompaper.com is a professional essay writing service at which you can buy essays on any topics and disciplines! All custom essays are written by professional writers!