Name: 21.

Hoang Thi Kieu Nhan Class: K57BFA

Email: hoangthikieunhan@gmail.com

Topic:

Business should utilize the labor force to maximize profitability

Outline:
I. Introduction:
The labor force is an important key that impacts on the firm’s improvement.
II. Body:
II.1 The labor force plays an important role in economic.
II.2 The influence of labour force on the company’s quality.
II.3 The effect of the labor market on company’s productivity.
III. Conclusion:
The corporation need to utilize the workforce to maximize profit margins.
--

ABSTRACT

This paper investigates the workforce is a crucial key in the development business. The costs of the
labor force are indeed easy to calculate, but the value of the labor market which brings does not
measure. Admittedly, the outstanding advantages of labor are improved quality and productivity. I
examine the effect of labor on profit margins through its influence on quality. I examine both
conformance quality and service quality. Through pieces of evidence which I search, I find that
increase profitability is also related to growing the amount of labor force through its active impact on
service quality. Besides that, I consider that raising the amount of workforce leads to higher profit
margins thanks to its active effect on conformance quality. Moreover, I consider that more than the
workforce increases, more than performance rises.

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FULL PAPER

Introduction: More and more companies around the world are considering the
The labor force is an importance of the labor force. The labor force is a crucial decision that
important key that impacts on the firm’s improvement. Diversity in the workforce brings
impacts on the fresh perspectives based on different experiences (Amadeo, 2019). In a
firm’s improvement. research paper, Fisher et al. (2006) show that the more workforce
increases, the more sales grow. Abdel-Samed says that some
entrepreneurs have been succeeded in providing staff benefits without
saving costs as much as possible (2019). Because every dollar saved on
staffing may cause several dollars in lost revenues (Marshall Fisher,
Santiago Gallino and Serguei Netessinentiago, 2019).

Body: Mary Daly and Tali Regev (2007) report that labor development is one of
II.1 two main determinants of the nation’s overall stable and future level of
economic expansion. They also argued in their research that the labor
The labor force market growth has devoted an average of 1.1 percent of potential real
plays an important GDP growth. Not only has the workforce seen as the main influencers
role in economic. but the workforce has seen the main key to the company’s ability to
raise its profitability (Simon Stirzzker, 2017). For example, increasing
the staff's salary by $1 in a shop is related to a sales rise of anywhere
from $4 to $28, based on the current level of salary compared to store
revenues (Fisher et al., 2006).

II.2 The word "quality" has been used and defined in many different ways
The influence of the (Garvin 1987). In my research setting, two aspects of quality are
labour force on especially crucial: service quality and conformance quality. According
company’s quality. to Lovejoy and Sethuraman (2000), they reported that staffing levels
also influence on conformance quality (CQ)- How effectively workers
follow to the specified procedures and service quality and (SQ)- The
level to which customers have good. Besides, there are many shreds of
evidence prove that service quality and conformance quality improve
firm sale’s (Sousa and Voss, 2002) and in retail trade systems (Ton and
Raman, 2010).
The connection between service quality and profit margins are best
explained by three factors related together in the product benefit chain
(Heskett et al., 1994). The quality of the services provided to customers
creates customer satisfaction, customer satisfaction produces loyalty
and finally, profitability is born from customer loyalty. It is
undoubtedly true that the behavior and attitude of service staff' have an
effect on the client's service quality and producibility. When customers
are dissatisfied, they will complain and create more work for
employees if the staff has not to deal with their problems. It leads to
productivity is becoming slower and slower (Gronroos, 2007). As
argued by Hopp et al. (2007), if all store owners increase more staff,
their employees can spend more time serving customers. Oliva and
Sterman (2001) show that when the amount of labor goes up, the

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 workload each worker is also reduced declines the ability that workers
would make mistakes. This leads to a rise in customer’s pleasure and
growth of profits as Fisher et al demonstrated in their research in 2006.
Much evidences that investment in conformance quality is related to long-
term business productivity because it helps companies to develop and
learn more rapidly (Crosby 1980). Some experiential kinds of research
demonstrate a positive impact of conformance quality on operative
producibility (Maani et al. 1994) and satisfaction of the client
(Tsikritsis and Heineke, 2004). Ton and Huckman (2008) illustrate that
the process conformance quality moderates the relationship between
employee turnover and company productivity. Nevertheless, the
experimental proof for the positive impact of conformance quality on
economical productivity still limits (Sousa and Voss, 2002).
In a short, all these studies point to the impact of the workforce on quality.

II.3 In today’s modern competitive world, the labor force is an important key
The effect of the for any corporation (Engagedly, 2018). Because employee engagement
labour market on seems that it makes a donation of organizational productivity
company’s (Lumenlearning, 2018) and productivity is a key concept throughout
productivity. determining the economic productivity of a firm or even a nation
(Salehi, Shirouyehzad, Dabestani, 2013). Knudson says that the
workforce can do tasks that are a higher value such as attract the
customers’ interest (Stores Contributor, 2019) or tend to provide the
best client satisfaction (Lumenlearning, 2018). According to Abdel-
Samed shows that retailers also are improving more adaptable staff to
make sure that any tasks are performed efficiently (Stores Contributor,
2019). Because higher efficiently leads to higher profit margins
(Lumenlearning, 2018).

Conclusion Finally, It is undoubtedly true that the labor force is a crucial sty for
The corporation strategy business. I find that the labor force affects both quality and
need to utilize the productivity. I consider that the workforce influences on turnover
workforce to through quality. Obviously, higher conformance quality is related to
maximize profit increase more profitability not only in a year but also in the next years.
margins. Besides that, the development of conformance quality also contributes
to raising turnover. Increasing productivity also leads to growing up the
firm’s revenue. If firms want to run their company successfully and
increase profit margins, they need to expand the labor force and utilize
the workforce to maximize profit margins.

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