Computer Zone, Inc.

Computer Zone, Inc.

Computer Zone, Inc. is well known for its first-rate output and management that is heavily invested in cutting-edge technology. However, as seen in the most recent financial and statistical report covering the period between 12 August and 13 May, the employment of contract labor has led to significant swings, which have negatively impacted quality, labor costs, and on-time performance. This case study chosen by inventory management entails the establishment of an overall plan for level loading the workload in the production and recommending choices for the suppliers for inventory management in order to avoid potential financial restrictions and curtail future consistency. Political involvement, economic crisis, socio-cultural issues and religious diversity has been the shrouds of companies and as such can either affect the company internally or externally. Managerial strategies implemented by the company may directly or indirectly command the financial outcome regarding profits generation. Basically, in this case study, it involves a huge drift and inconsistency in the number of employees which involves labor contracts. Furthermore, the nature of the company’s produce commands the number of hired laborers per month in relation to possible profit generation.

Discussions

In business or manufacturing environment, management is structured to ensure total and maximum profit generation, strategies laid down should be efficient and effective toward obligations (Adams, Juan & Virginia, 2009). To ensure maximum profit generation, some companies opt for contract labor rather than permanent work force and in this case study, the issue that might lead to this alternative within a company wholly relies on the nature of the job offered.

These issues include; need to cut the production cost due to fall in profit affected by excess employee leading to employee retrenchment rather than dismissal of employees that might be associated with dismissal cost (Adriana, Jimeno &Virginia, 2005). A un-conducive political atmosphere such as electioneering periods thus possible violence, this might affect the number of sales per output, risks involved in traveling thus low worker turnout, huge national debts transcends to companies for higher taxation rates. Religious issues, this diverse nature affects the working days and hours that might be involved with permanent employees, for instance, a company employing all Christians will correspond to no working on weekends.

In addition, issues such as a need to delegate low priority duties associated with low-skilled worker by the company as well as the need to expertise a specific job, e.g., electrician and to avoid possible risks. This might be strategically to meet a specific requirement as well as deadline, selectively choosing the right kind of contract labor is instrumental in ensuring that the needed work is completed.

According to (Erickceck, Houseman & Kalleberg, 2002), need for outsourcing and screening of contract workers for permanent jobs and possible future promotion, for instance, checking commitment levels. Furthermore, permanent jobs involve incurring of extra costs such as provision insurance covers as opposed to contract labor. Upcoming companies tend to prefer labor contract which is instrumental in stabilizing before picking up.

Substantial political instability correlates to reduction of gross domestic product of a nation, reduced per capita incomes further passes on the constrains associated such as contract frustrations, breaching of governmental contracts to cope with nations economic crisis, cut on provision of subsidies (increases company’s production cost), increased taxations. This political malice transcends to determine the number of employees reaching the work place due to fear.

Solutions

Compensations for delays such as concurrent delay, i.e., simultaneously unrelated delays and compensable delays which can be from either the employer or employee (Nathan, Lee &Parkman, 2016), to ensure on-time completion. Computer Zone, Inc. to consider contract agencies rather than individuals for the provision of laborers. This will reduce the cost such as transportation allowances and enhance flexibility in case of need of dismissal arises depending on the terms of the agreement.

Though political interference in economic growth solely lies in the hands of the government and the political class, it’s inevitable to fully control the situation to propagate conducive economic growth. However, only pre-measures should be take to control in case of political uncertainty, measures can be; professional and non-professional covers such as political evacuation cover for the employees, political risk insurance e.g. damage caused by violence.

Follow-up and contingency plan

In case of reoccurrence of the problems associated with; fluctuations, use common components, mixed model production lines, finished goods inventory, and designing production so the product differentiating steps are done toward the end of the process so they can be directed by actual customer demand rather than forecast(Sheila 2009, p. 3). On causing quality and on-time performance consider using experts specialized in that particular field and lastly on high labor cost consider labor agencies mediation to act as the intermediary.

Conclusion

Generally, having effective work force availability within a company greatly affects the output quantitatively and on time performance. In other cases, involving intermediaries to get contract labor may financially affect the employee due to commission deducted by the intermediaries thus de-motivating. Lastly, long-term contract via contract agencies might make the worker feel they are on permanent payrolls as other company’s employees.

To curb possible political turmoil, effective identification and quantitative examination of methods of transforming political uncertainty to economic growth. This case study further suggest that country’s preoccupied by this political impedance need to prudently address its pertinent root causes and try to diminish its effects in relation to company policy.

References

Adams Cummins, (2009). Resolving Problems and Disputes on Construction Projects: Tackling Contract Performance Delays

Adriana Kugler, Juan F. Jimeno& Virginia Hernanz,(Jan 2005). Employment Consequences of Restrictive Permanent Contracts:Evidence from Spanish Labor Market Reforms

George A. Erickcek, Susan N. Houseman & Arne L. Kalleberg, (2002). The Effects of Temporary Services and Contracting Out on Low-Skilled Workers: Evidence from Auto Suppliers, Hospitals, and Public Schools

Nathan Chapman, Lee C. Davis and W. Henry Parkman, (2016). Resolving Problems and Disputes on Construction Projects: Tackling Contract Performance Delays | Lorman Education Services.

Sheila Julien, (2009).Coping with Demand Fluctuations in Service Industries, Vol 15. No 1