Short Labor Supply Influences Retail Sector Essay

1606 Words Oct 15th, 2012 7 Pages
Short Labor Supply Influences Retail Sector

This essay identifies and explores the impact of one external factor that has influenced my organization and job within the last twelve month.
The factor I have chosen sits in the task environment is labor supply. Task environment is the external segment comprising the specific external elements that an organization faces (Bartol, Tein, Matthews, Sharma, Scott-Ladd 2011, p. 76). While Bartol et al (2011, p. 77) defines that an organization’s labor supply consists of the people employable by the organization.
I would like to introduce my company and my job responsibility. I work as a sales advisor in X shop. The X department store is a local retail chain store selling apparel, shoes and
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The external environment of Labor supply is significant to a company. One of the positive effects is to boost the profit of the company. My company has totally hundreds of employees, take average of $2500 per month, the yearly expenses for salary will be $1,250,000. The lesser manpower they own, the more profit of the company they have (Rosenfeld 2010).
A lack of workers is easy to manage and control is the other positive effect with short labor supply. In our retail shop, one manager has to control the total 25 employees from different departments such as shoes, apparel for both ladies and gentlemen, beauty, lingerie in the sales and services line. It is much easier for the manager to manage and command the staffs rather than the large group of staff. No business that requires additional employees can reach their potential without them; striking a balance between the labor available and the labor needed is always a concern that relates to productivity and to profit (Morgan 2012).
However, there are more negative effects than positive ones with the short labor supply. It is becoming more and more serious for the company now.
First of all, the company industry may lose the capable staff. By last twelve months, most of the local employees leave the company one by one. The company does not have any quota for foreign

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