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Worker-Sensitive Firm

Worker-Sensitive Firm

Q Read “MGMT mistakes HMI” listed in the Required Readings section of the Weekly Materials. Answer the three questions presented on the case on page 13; providing additional research support for your responses. 1. A worker-sensitive firm is bound eventually to face a competitive disadvantage as it cannot control its labor costs. Evaluate this statement. 2. Do you see any risks in Herman Miller lowering its quality and its prices? Do you think it should have done so? 3. What do you think of the “enlightened” policy announced by Max DePree as he retired that henceforth no DePree will ever work for the firm again, in order that able people can have unimpeded career paths within the company? Discuss as many facets of this policy as you can.

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1. If a firm is worker-sensitive then it will always focus on the benefits and advantages for the employees. In this way the major focus on productivity and sales revenue growth will be affected in a negative manner. Labor costs is an important factor while considering the competitive advantage for a company (Greenberg. 2012). In this tremendous competitive business world, most of the companies prefer to cut down the labor costs wither by providing less wages to the worker or lowering the benefits and compensations.