Question

In: Operations Management

the merits and demerits of using internal and external agents

the merits and demerits of using internal and external agents

Solutions

Expert Solution

Solution:

The use of external agents for accomplishing a certain task within an organization is a practice that is being followed by companies for ages and this is why this practice is still very much prevalent in the market today because of various benefits associated with such a type of agent. We will discuss some of the merits and demerits of using external and internal agents.

External agents provide us with an unbiased point of view. For any organization, it is very essential to have an unbiased view of the situation to help make an appropriate business decision. External agents are thus very much valued by the organization because of the diverse opinion they bring to the table. External agents are preferred because it is easy to deal with their contract employment rather than full payroll employment which can be costly. Hence, external agents provide the organization with much-needed flexibility and help them save on their costs. Some of the demerits of external agents in that we may not completely be sure of the efforts put by the external agent to provide the solution because of the lack of entitlement to the organization. External agents can also b hard to manage because one needs to make them understand the business practices as well. These are some of the cons of external agents.

Internal agents are preferred when the tasks at hand require a deep experience of working within the organization. Thus, in such a situation the internal agents are preferred over external agents because of lack of appropriate experience and knowledge with the external agents. Hence, this is a big benefit of internal agents. The demerits of internal agents are that their point of view may become biased and creativity may become stagnant due to repetitive work for continuous period of time. Hence, this is a big demerit of the internal agents for the organization.

Hence, this is a overview of the merits and demerits of the internal and external agents.


Related Solutions

Explain Merits and demerits of IAS 16 paragraph 17?
Explain Merits and demerits of IAS 16 paragraph 17?
what are the merits and demerits of isothermal amplification method as used in parasitology as a...
what are the merits and demerits of isothermal amplification method as used in parasitology as a diagnostic test?
write an essay in response to the merits and demerits of grading on a bell curve....
write an essay in response to the merits and demerits of grading on a bell curve. Use the following article https://cubelogger.wordpress.com/2011/07/15/the-merits-and-demerits-of-grading-on-a-bell-curve/
Critically discuss the components of JetBlue’s competitive advantage, and what are the merits and demerits of...
Critically discuss the components of JetBlue’s competitive advantage, and what are the merits and demerits of these components? (400 words)
Compare and contrast the relative merits and demerits of Reactive maintenance and Predictive maintenance.
Compare and contrast the relative merits and demerits of Reactive maintenance and Predictive maintenance.
Brief literature review on profitability index and includes its merits and demerits
Brief literature review on profitability index and includes its merits and demerits
Explain the various methods of appraising capital projects, including their relative merits and demerits.
Explain the various methods of appraising capital projects, including their relative merits and demerits.
3) Specifically outline the nature of the following tariffs and state their merits and demerits. i)...
3) Specifically outline the nature of the following tariffs and state their merits and demerits. i) Specific tariffs.            [6 Marks] ii) Ad valorem tariffs. [6 Marks] iii) Compound tariffs. [6 Marks]     
Discuss the development of the Zero Based Budgeting, highlighting the stages, uses, merits and demerits (
Discuss the development of the Zero Based Budgeting, highlighting the stages, uses, merits and demerits (
Q3. Critically discuss the components of JetBlue’s competitive advantage, and what are the merits and demerits...
Q3. Critically discuss the components of JetBlue’s competitive advantage, and what are the merits and demerits of these components? (30 marks- 400 words)
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT