Question

Introduction to Business

1. Describe the benefits of using contingent workers/temporary employees from the perspectiive of the worker AND the company.

2. Recently, an economist at the Universtiry of Maryland stated that traditional cycles of the U.S ecomony (e.g. recession, depression, recovery, boom) may not be as predictable because of the evolution and change in the sectors of the economy. What is his rationale for making this statement.

Answer 1

CONTINGENT /TEMPORARY WORKER - contingent and temporary workers are those workers who are not the permanent employees of the firms and can be employed occasionally for the specific and prescribed period. it may include part time workers college interns and contract job workers

BENEFITS IN POINT OF VIEW OF EMPLOYEES

1. the worker can utilise the free and idle time in earning extra income.
2. to show the efficiency of the workers
3. opportunitity to get employed in case of any vacancy
4. gaining experience
5. get the practical working knowledge

BENEFITS IN POINT OF VIEW OF EMPLOYERS

1. flexibility in the staff
2. reduction in cost
3. new and innovative ideas/Fresh perspectives
4. creative designs of working
5. fullfilment of manpower needs in emerging situations

concerned with recent study-

first we need to analyse the terms used in the theory

RECESSION- it is a situation when the business firms starts declining their productions and there is an increase in involuntary unemployment.the manpower availability exists and it is a prior condition to depression

DEPRESSION- depression is a condition where the production is stopped the private sector doesn't make any capital investment and vicious circle of poverty exist and this is a very harmful situation in the economy, we can see that many countries have crossed the level of recession in the economy and entered in the situation where depression starts.

RECOVERY- Recovery is a situtation where government makes investment (as per the keynesian theory) and the level of employment increases and so does the level of inflation.

BOOM- BOOM is a situation where the inflation is at its peak and the purchasing power of the currency has decline.at his situation involuntary unemployement doesn't exist and production is very high due to the involvement of public and private sectors.

BUSINESS CYCLE MODEL

a study at the Universtiry of Maryland stated that the above situation can't be predicted . this statement is made because the bottom of depression and peak of boom can't be estimated . it is very difficult to estimate that at which point the firms should stop production and never knows when the recession is to be started and when it would make bottom as depression and assurance of recovery is also a big problem.