Explore BrainMass

This post addresses ecomics questions.

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

What is the logic of a firm setting and exercising the application of a mandatory retirement age? What are the pros and cons of the mandatory retirement practice from the perspective of the firm/organization, individual, economy, or Nation? How might your response change with time; i.e., as you age or as the discoveries, opportunities, and challenges of mankind continue to evolve? What affect might our concern for the baby boomers reaching retirement age, and the smallest number workers supporting the largest number of retirees drawing social security, have on our views regarding mandatory retirement. If the seniors are employed, they will be contributing to social security through their FICA payments.

Living employees company stock or stock options in lieu of pay increases has been popular in many companies. The employees often are not allowed to sell their stock (or exercise their purchase option) for at least one year after receipt, and must forfeit the stock if they quit or are fired within a specified waiting period. Discuss the pros and cons of stock bonuses in lieu of cash bonuses from the perspective of:

o the employee;

o the firm;

o the stockholder;

o the economy (the Nation).

Are there any upsides (benefits) or downsides (costs) to the economy from using stock or stock options as a form of compensation?

© BrainMass Inc. brainmass.com October 25, 2018, 5:19 am ad1c9bdddf

Solution Preview

What is the logic of a firm setting and exercising the application of a mandatory retirement age?

There are a few reasons for it. There are many firms who believe that once an employee gets older, their salary has likely increased, and they're paying more than they would for a middle-managerial position. If there is a mandatory retirement age, it saves the company money due to the salary difference. Also, when a person gets near retirement age, companies generally bring in young businesspersons with fresh, new ideas in order to keep the company's strategy current, young, and in-line with the competition. Companies want to ...

Solution Summary

The solution discusses issues relating to retirement ages and relates issues and also discusses stock options.

See Also This Related BrainMass Solution

Write a 1,500 - 2,000 word research paper discussing a current topic in the field of Managerial Ecomics (the economics of the firm)

Subject: Human Resource Management
Level of Study: MBA
Must be in APA format. Both in-text citations and a general reference list at the end of the paper MUST be used.

Surveying Employee Opinions
June 26 2008 - A recent survey by Opinion Research Corporation found that many US businesses are missing out on vital feedback and ideas from their own workforces.
Opinion Research Corporation's annual employee research survey shows that 44% of the 1437 respondents do not carry out employee surveys - compared to 47% in 2007. And almost a half (46%) of businesses that conducted surveys did not make any organizational changes as a result of employee feedback (slightly worse than the 44% in 2007).
Employee surveys were most popular in the South (57% of companies questioned) while those in the North Central region ( Ohio, Indiana, Illinois, Michigan, Wisconsin, Minnesota, Iowa, Missouri, North Dakota, South Dakota, Nebraska, Kansas) were the least likely (52%) to take any action following employee surveys, compared with 42% in the West.
Terry Reilly, Director of the Employee Engagement practice at Opinion Research Corporation US said:
"Your employees hold the key to your success. An employee survey gives them the opportunity to let their feedback be heard and become part of the ongoing strategy of the organization."
The research shows a strong correlation between positive employee perception and the responsiveness of an organization to employee survey feedback. 84% of workers in businesses that acted on survey feedback felt that the changes positively affected them personally - up from 74% in 2007. However, nearly one quarter (23%) of these did not think that the change was communicated well in the workplace.
US results were much better than those from a similar study in the UK where only 32% of respondents thought that change was managed effectively in their organizations - compared to 63% in the US. And only 43% of British respondents said they had the opportunity to contribute their views before changes were made to their jobs. This compared to 62% in the US.
Terry Reilly commented:
"Ineffective management of change within an organization can lead to increased uncertainty in the workforce. Offering employees the opportunity to voice their opinions before change is implemented can significantly improve employee engagement, and, in turn - the success of the organization."
Top Themes in Employee Surveys
An analysis of employee responses to opinion surveys in 2006 found a number of recurrent themes. HR Solutions, Inc., a Chicago-based management consulting firm specializing in Employee Engagement Surveys, compiled a top 10 list of the issues that concern employees the most:
1. Higher salaries. Pay is the number one topic for employee dissatisfaction.
2. Internal pay equity. Employees are particularly concerned about 'pay compression' (defined as the differential in pay between new and more tenured employees).
3. Benefits programs. Particularly health/dental, retirement, and Paid Time Off/vacation days. Many employees are unhappy about the cost of health insurance, especially prescription drug programs.
4. Over-management. "Too many chiefs, not enough Indians" is a typical comment.
5. Pay increase guidelines. There should be a greater emphasis on merit.
6. The HR department. They need to be more responsive to employees' questions and/or concerns.
7. Favoritism.
8. Improved communication and availability. This applies to both supervisors and upper management.
9. Over-work. Workloads are too heavy and/or departments are understaffed.
10. Facility cleanliness.
Responses from written feedback can be different than verbal employee feedback sessions, according to Jennifer Rand, Principal Consultant with HR Solutions. "Most of what the consultants hear during the feedback sessions supports in great detail the themes of the written comments. The comments most prevalent are usually those things that have changed, whether negative or positive, i.e. benefits, since it is human nature to resist change," she said.
HR Solutions say that organizations should not overlook the write-in comment section of their employee survey as Quick Wins oftentimes originate from it. Quick Wins are easily implemented, actionable improvements to workplace setting or environment involving little resource investment. They can lead to immediate improvements in employee engagement and reassure employees that managers are acting on the survey findings.

View Full Posting Details