What Factors Influence An Employee's Organizational Loyalty – In microeconomics, competition is influenced by five factors: Product characteristics, number of sellers, barriers to entry, availability of information and location. Each factor depends on the availability or attractiveness of substitution, and most markets lie somewhere between perfect competition and monopoly.
Product characteristics describe their level of differentiation. If a company’s product is similar to others already on the market, the product or service cannot be distinguished from products sold by competitors. This situation would involve fierce competition. Alternatively, a product may be completely differentiated or unique with a low level of competition.
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What Factors Influence An Employee's Organizational Loyalty
The number of sellers affects the competition. If there are many sellers of an undifferentiated product, competition is considered too high. If there are few sellers, competition is low. If there is one seller, the market is considered a monopoly.
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Barriers to entry can affect the number of sellers. Market characteristics such as high capital investment requirements or heavy regulations can prevent new firms from entering the market, which in turn provides a level of protection for existing firms. With lower competition due to barriers to entry, companies will be able to charge higher prices.
Availability of information is mainly about price discovery. When customers can effectively and accurately define prices over competitors, firms are unable to fix prices and competition is robust.
A proactive placement strategy can corner potential customers and reach them more effectively than the competition. Gas stations, for example, are often strategically located on busy corners.
Most markets are somewhere between perfect competition and monopoly. In perfect competition, each firm’s marginal profit equals marginal cost. There is no financial gain. In a monopoly, marginal profit equals marginal revenue, which is the incremental revenue generated by selling one more unit.
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Firms in perfect competition are considered price takers, which means they do not have the ability to set prices, the reason why marginal profit equals marginal cost. Perfectly competitive markets are defined by a homogeneous product, many sellers with low market share, and no barriers to entry or exit. These companies cannot differentiate their products and their customers have very accurate information.
A monopoly involves one company dominating the entire market. In this situation, the company sets the price and competition is non-existent.
The soft drink market, dominated by Coca-Cola and Pepsi, could be considered an oligopoly, with a few large companies dominating most of the market. The market for tomatoes could be considered a step or two above perfect competition; after all, some people are willing to pay more for organic or heirloom tomatoes, while others only look at the price.
The Federal Trade Commission enforces non-criminal antitrust laws in the United States and prevents and eliminates anti-competitive business practices, including coercive monopoly. The agency works with competition and consumer protection agencies in other countries to monitor deceptive and competitive business practices that affect American consumers.
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Macroeconomics looks at how the overall economy works and studies employment, gross domestic product (GDP) and inflation. Microeconomics deals with the effects of supply and demand on individual markets for goods and services.
Most markets operate somewhere between true competition and monopoly. Microeconomic factors that affect competition include the features of a product and the number of sellers. In the United States, the Federal Trade Commission works to eliminate anti-competitive business practices.
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By clicking “Accept all cookies”, you agree to the storage of cookies on your device to improve website navigation, analyze website usage and assist with our marketing efforts. For any company, employee performance is the key to success. Every employee must work towards the vision and mission of the company. There is no overarching mantra around employee performance – it’s about how companies manage, improve and motivate their employees.
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According to SHRM’s 2020 report, more than 85% of employees are not engaged in their workplace. So companies need to find a way to ensure employee engagement, which in turn leads to employee productivity.
Employee performance is a measure of how well or poorly an employee performs their required job duties and how quickly they meet their deadlines or requirements
Measuring employee performance can help you identify potential flaws in your employee training program and guide you on how to improve.
Employees will not operate in a vacuum. Certain factors such as the employer, personal preferences and many other external factors affect the performance of employees. We will not consider factors that hinder employee performance, such as personal problems, because the organization cannot eliminate these types of factors.
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Alternatively, we focus on factors that have a positive impact on employee performance. Companies that think about how they engage their employees can make the difference. There is no simple or easy way, but there are certain key areas that can create strong results. The mantra is simple, since we know the factors that have a positive impact on employee performance, focusing on these factors will ultimately increase employee productivity.
Common ways to improve employee performance are to identify problems of underperformance and match them according to the skills of your employees. You need to enrich two-way communication to have a positive work environment. Set clear goals and achievable milestones and effectively train employees to drive growth and achieve effective employee productivity and performance.
Training focuses on immediate improvements, such as managing a change in your business software, while development focuses on long-term goals. The performance of employees depends on the training he/she receives from the company. Companies have different levels of training and employee performance expectations depending on the situation.
Investing in training can increase your profit margin by 24% or more because it makes your employees better at their jobs. Training also helps improve retention and reduce turnover. In a recent survey, 68% of employees say that training and development is the most important company policy, so managers must understand each individual and provide appropriate training to retain their staff.
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Furthermore, the training does not end at boarding. If employees do not receive training after their first few weeks on the job, they will feel that the company is not investing in their development. Companies should provide a problem-free learning environment for employees, which promotes the career progress of the employees.
“For the things we must learn before we can do them, we learn by doing them.” – Aristotle
Similar to Aristotle’s saying, a modern digital hiring platform allows your employees to learn by having hands-on experience with the product (in-app training) by creating interactive walkthroughs. This innovative method reduces time spent on training by 70% and improves employee performance.
The Workplace Research Foundation (WRF) found that a 10% increase in investment in employee engagement can increase profits by $2,400 per employee. employee per year.
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Now that we have learned the positive side, let’s look at the other side of the coin. According to Gallup, actively disengaged employees cost approximately $450 to $550 billion in lost productivity each year.
Employee engagement does not happen overnight – the company must focus on the needs and wants of employees over time and must drive a strong culture.
What remains puzzling is how corporate culture affects employee performance? Let’s look at some facts and discuss the buzzword
According to Glassdoor’s Culture Survey, 2019 reports that more than 77% of adults in four countries (US, France, UK, Germany) consider a company’s culture a priority when looking for a job, and more than 50% of respondents said that the company culture is more important than salary when it comes to job satisfaction.
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While unique benefits and high salaries used to be the keys to attracting top talent, the situation has changed. Companies need to understand that salary alone cannot make your employees happy, culture matters a lot.
“If you​​​​get the culture right, most other things will just take care of themselves.” – Tony Hsieh
Companies that have strong cultures experienced a fourfold increase in revenue. Culture is the backbone of the company, helping to retain employees and motivating the performance of your employees. Company culture empowers employees to defy the odds and achieve greater achievements.
Culture also needs to be regularly cultivated for long-term benefits, it is not a one-time goal to achieve. The more the company invests in culture, the more employees will be engaged. Company morale and culture go hand in hand with performance.
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If you are trying to grow and improve the productivity of your employees and your company as a whole, you must focus on developing a culture that promotes employees, employee health, persistence and productive leadership. A good way to promote employee performance and productivity is to motivate your employees and provide them with continuous training.
Employees who feel secure and excited about their work are the ones who stay. Your turnover will be lower and you will have employees who really know what they are doing. If employees are not motivated to do their job well, their performance will suffer and they will spend more time messing up than actually working productively.
As we discussed above, the factors that can improve the performance of employees are training and development, which focuses on improvement. Second is Employee Engagement which should be prioritized as they are the front lines
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