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Your firm has built a manufacturing plant not too far from a large European city
Your firm has built a manufacturing plant not too far from a large European city. You are a member of a management team that is charged with designing employment contracts that promote high effort among the employees.
a. What factors might you bring to the attention of the team?
b. Would your answer change if the manufacturing plant is located near a fairly isolated village in a developing nation?
Expert Solution
(a) Factors affecting the employment contract:
- Different incentives to the employees working in the plant to compensate them enough in order to motivate the employees.
- The incentives will include the dining facilities, health benefits, entertainment programs such as drama, play, etc. to increase the morale of the employees.
- The regulations of the body that govern the employment contract within the country and the laws related to it.
- Working environment and other conditions offered by our competitors in the same industry.
- Skills and other practices followed by the top-performing companies of the country.
(b) The answer would change because when the plant is located far from the city, the retention of employees becomes difficult, so the firm has to offer various other benefits in addition to the above-mentioned points so that the employees don't feel homesick. The benefits will include dining facilities, entertainment facilities, proper health conditions, etc. Good internet connections for communicating with families and friends back home are a must.
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