Unqualified Employees Effect on Business

Introduction

Growth of every business organization greatly depends on the experience and knowledge its employees have. This is because they are the ones responsible of making every decision with respect to improving customer satisfaction as well as business efficiency. One of the main organs of every business is its human resource personnel. These employees are responsible of making vital decisions within the business ranging from business strategies, methods to improve business efficiency and kind of employees to recruit (BBC News, 2009, para. 2-5). There are numerous benefits that a business accrues from recruiting qualified employees. These range from improving business profit due to customer satisfaction to reduction of employee turnover. Despite unqualified employees being paid less salary compared to qualified ones, a business that employs unqualified personnel incur numerous hardships in its day to day operations. Some of the effects of unqualified employees in business organizations include poor decision making in business, high employee turnover, lack of organization within the business, lack of customer satisfaction and lack of innovations (Corominas, Pastor & Plans, 2008, p. 1126).

Literature review

Presence of unqualified employees within a business has various drawbacks to business operations. These range from decision making, employee turnover, poor competitive advantage, poor organizational skills and others. As business continues growing, its operations also becomes complex. To cope with numerous activities within such a business requires employees to have good knowledge on steps to be followed when addressing the activities. A business that has unskilled employees finds most of the activities going unattended due to lack of personnel with the required knowledge to tackle such issues. Most of the activities tackled are poorly done as employees do not have enough knowledge on how to do them. To maintain growth of such a business, it calls for the business to either train its employees or recruit qualified employees. This becomes very expensive for the organization with respect to money and time. If the business opts to train its existing employees, it means that some of the employees will not participate in business activities. To cater for jobs that were being performed by these employees, it means that the available employees have to be redistributed in the business. This leads to some activities taking long time before they are completed because of limited staffs. For the business to get qualified employees, it has to offer a competitive package. No skilled employee would be willing to leave his or her current organization if not promised to get a good package in the next organization. This proves expensive to business organizations (Corominas, Pastor & Plans, 2008, pp. 1127-1132).

The present trend in business competition calls for changes to be regularly effected within a business organization for it to overcome competition. Business continually introduces new innovations within their premises aimed at improving customer satisfaction thus managing to overcome competition. For business organization to come up with innovations within its activities, its employees have to have clear understanding of its activities and impacts the introduced changes will have to both the business and customers. Current introduction of e-business in business world requires organizations to have qualified personnel. This is for business to tap numerous benefits accompanied by e-business. Businesses with unqualified employees are not capable of making innovations. Such organizations continue using some of the obsolete methods of operations that its employees are conversant with. As a result, the business is unable to meet the dynamic customer needs. Innovation leads to competition within the market. Customers are always willing to return to a business where there needs are well met. Because unqualified employees are unable to come up with new methods of operations to effectively meet customer needs, the business ends up losing most of its customers to its competitors. Such a business is not capable of gaining competitive advantage within the market (Edwards, Sengupta & Tsai, 2009, pp. 40-58). This may eventually lead to the business collapsing as it incurs expenses in paying unproductive employees.

For a business to grow, it requires it employees to come up with proper business strategies. This is the main role of human resource personnel. The personnel need to have adequate skills in conducting business analysis with respect to its strength, weaknesses, opportunities and threats (SWOT). They also need to have a clear understanding of internal and external environments of the business. Understanding some of the weaknesses of their competitors helps in coming with business strategies that focus on capitalizing on those weaknesses. This task cannot be conducted by unqualified employees. This is the reason why businesses that employ unqualified employees perform poorly. Such employees come with business strategies without considering its customer needs as well as competitors. Eventually, the strategies fail to meet customer needs. Lack of good understanding of competitors by such employees lead to them coming up with strategies that are poor compared to those of their competitors. The business fails to gain competitive advantage. At times, the developed strategies become expensive to the business. For strategies to be productive to the business, they require to be regularly monitored as they are implemented to ensure that are helping in attaining business goals. Areas that require to be modified are identified in advance and the necessary alterations made (Geishecker & Görg, 2005, pp. 91-92). For business with unqualified employees, it becomes hard for them to monitor the strategies as they continue implementing them. This results in business failing to effectively attaining its goals.

One of the benefits a business gets from employing skilled employees is the ability of such employees in coming up with proper organization mechanisms within the business. Every business has various departments within it that works together towards attaining its objectives. For it to attain the target goals, all these departments have to effectively coordinate. Employees have to come up with proper channels for information transfer from one department to another. This ensures that there is cooperation within the business. Unqualified employees lack the knowledge to effectively organize activities within a business. This result in some activities being completed late while others ends up not being executed. Organization within a business does not only entail coordinating operations. It also involves keeping records that help in tracking business performance. This helps in determining areas where the business perform poorly and looking for ways to correct it. Businesses with inexperienced personnel are not capable of tracking business performance. They are thus not capable of identifying areas where the business performs poorly. Such businesses end up running at a loss or not attaining their goals (Holzer, 2007, pp. 1-20).

To maintain customers, employees need to be efficient in delivering their services as well as show confidence in whatever they do. For businesses that offer services to customers, efficiency plays a big role in ensuring that the business gains a market share. Ensuring that your business offers efficient and quality services to customers lead to them being loyal to the business. Showing confidence in service being offered makes customers trust in you thus always willing to accept your services. Qualified personnel are efficient in offering services to customers. As such employees have worked in the business for a long time; they are able to invent new methods of improving their efficiency in service delivery. Working in a business for a long time also leads to one being confident of whatever he or she does. Employees are able to offer their services confidently making customers trust in them. Businesses with unqualified employees lose customers due to employees offering poor services as well as inefficient service delivery among employees. As these employees lack experience in their fields, they offer their services slowly to avoid leaving some areas unattended. This makes customer’s lack confidence in their services (Krajc & Ortmann, 2008, pp. 724-738). As every customer need to be assured of the quality of services being offered, lack of confidence among such employees lead to customers doubting the quality of their services. Consequently, the business ends up losing most of its customers.

Most business organizations emphasize on need for employee empowerment. This helps in employee satisfaction, retention and improving employee productivity. Allowing employees to independently make decisions affecting operations within their respective departments brings about innovations in the business. Since employees are the ones involved in day to day operations of the business, they identify some of the constraints that hamper business growth thus devising new methods to counter them. Employees also feel to be part and parcel of the business thus become committed to its activities. For business organizations with unskilled employees, it becomes hard to introduce employee empowerment. Since employees have no knowledge on various operation methods that can be used to improve business performance, they end up coming with operation methods that are not effective in the business. The business offers poor services making it hard for it to overcome competition. The services fail to meet all customer needs leading to their dissatisfaction. Such businesses record low rate of customer turnout (Krueger & Solow, 2008, p. 64).

Decision making in business is vital. This is because it helps in coming up with mechanisms to overcome completion. Decision made by human resource personnel significantly facilitate I growth and sustenance of the business. For instance, decision to conduct employee training within a business leads to improvement in employee performance thus ensuring customer satisfaction. Before a business decides to introduce a certain technology in its operations, human resource personnel conduct analysis of effects of the technology to the business, employees and customers. This calls for need of qualified human resource employees in the business. Employee unqualified human resource personnel may lead to poor decision making within the business. Such employees may resolve to conduct employee training when not necessary (Kuhn & Mikal, 2006, p. 143). Employees may be taken through unnecessary training making business suffer unwanted expenses. The process of decision making within a business also becomes slow in cases where a business has unqualified staffs. This is because it requires employers to take time in analyzing operations within the business to come up with decision on areas that require changes. For business with experienced employees, decision making process is very swift. Employees are able to identify the hardships they encounter during their operations and covey the information to the management for necessary actions to be taken. It does not require human resource or management to analyze operations in different departments in the business to make decisions (Mollick, 2009, pp. 1285-1296).

Methodology

Research objectives, aims and research questions are meant to give the researcher a direction and focus for attainment of the research goal. This is ensured by ensuring that the research questions are answered at the end of the study for the achievement of the research objectives. Thus, the main research question for this study is;

Which are the drawback brought by the presence of incompetent workforce in an organization?

The information in this proposal will be obtained from data stored in various records of numerous business organizations. This is information regarding performance of some of the business organizations that have been known to employ unskilled personnel. Dissertations and journals compiled by various scholars documenting business performance from different countries will also be helpful in gaining insight of the research. In addition, a survey will be conducted on a set of business organizations. The survey will be developed and administered on various business organizations in different towns within United States, while each survey will be cross-sectional in nature, data sample and set of questionnaires used in collecting information will be uniform across the survey. This will make it possible to bring together all the gathered information and analyze effects of unqualified employees in different businesses across the country (Mukoyama & Şahin, 2006, pp. 2179-2193).

The first survey will be conducted on approximately two thousand business organizations from four different towns. The survey will be conducted through questionnaires on a sample of business organizations drawn from the pool of identified business organizations. Those interviewed will be employers who have for a long time been involved in employing unskilled employees in their firms. The sample of employers drawn from the list of business organizations with unqualified employees will be organized in ex-ante by size in a manner that reflects the distribution of employees across various departments within the businesses. As a result, the sample will already be weighted according to size (Mullen & Panning, 2009, pp. 160-173). Survey questions will focus on various characteristics of employees such as their level of knowledge on the various responsibilities they are bestowed with in business organizations and the last staffs employed in the organization and the kind of jobs they were assigned to.

The second survey will be conducted on approximately three thousand businesses in other towns different from the ones surveyed in the first study. The two surveys will have similar types of questions which are: a) The number of departments within a business; b) the number of unskilled personnel within the department; c) customer response to services and goods offered by the business; d) how decision making process takes place within the organization; e) effectiveness of strategies formulation within the business; f) types of innovations that have been witnessed in the business; g) effectiveness of the business in overcoming competition; h) amount of salary paid to each employee; i) whether one has to have limited skills in the field he or she is applying for in order to be considered. For effective collection of information through the questionnaires, the selected sample to be studied will be supplied with adequate information regarding the importance of the research. This will help in eliminating suspicion from the studied group. As a result, they will be willing to provide adequate information required in the questionnaires (Pollmann-Schult, 2005, para. 2-5).

To measure the reliability of the used method in the research, the method will use two sets of similar questionnaires. All the participants will be requested to complete the questionnaires. It is from the obtained information that it will be determined whether the method used has facilitated in gathering the relevant information. This will be through running a correlation between the two sets of questionnaires. To obtain the correlation, Cronbach’s Alpha method will be used. This is where the data will be split into two sets if questionnaires and correlation computed through the help of computer software. Measuring the validity of the outcome gotten from the research will help in ascertaining whether the used method facilitated in attaining the required information. As data interpretation is subjective, determining the validity of the conclusion made will be attained by looking at the method used in reaching at that conclusion. This will require the person responsible of administering questionnaires to use participatory method (Pryor, 1999, para. 3). The method will lead to persons who filled questionnaire willing to corroborate any further information requested from them.

The survey will be rated using interval scale. Being the standard method of rating surveys, one will be able to determine how satisfactory the survey was in analyzing the impacts of unqualified employees in business thus clarifying the set hypothesis. The following table shows how information will be collected during the survey.

Age Level of skills Job specialization Innovations made Decision making process Last employed staffs
18-24
25-34
35-44
45-54
55-64
65+

To effectively understand effects of unqualified employees on organizations, it is imperative for researchers to collect adequate information. This is the reason why there is need for development of dummy table like the one above. From the table researchers will be able to gather information on the manner in which employees are assigned their specific jobs. They will also be able to identify the trend of employing unqualified employees based on their age. It is from the obtained information that researchers will be able to identify the most suitable scale to use in ranking their results. Information on rate of decision making process in different organizations will be evaluated to determine the relationship between decision making in organizations and level of experience within employees in that organization.

Data analysis

To have a clear analysis of the data collected, both qualitative and quantitative methods of data analysis will be employed. Statistical tools will be applied on the data to make the final conclusion. For qualitative analysis of the collected data, brainstorming as well as cause and effects diagrams will be used. Quantitative analysis of the data will be done through use of scatter plots, correlations, histograms and bar graphs. Analysis of data will help in identifying some of the impacts of unqualified personnel in business. Rate of decision making process within various organizations will be analyzed with respect to level of knowledge of their employees. Innovations within businesses will also be evaluated with respect to employee experience (Robcam, 2010, para. 1).

Conclusion

Business productivity is said to be hampered by presence of unqualified personnel in the business. This is due to inability of these employees to make informed decisions on matter affecting the business (Swamy, 2005, pp. 61-69). Growth of business depends on innovations made within the business. Innovations cannot be attained in a business if the available employees have no experience in its operations. To verifying these assumptions on impacts of unqualified personnel in a business, rigorous research will be conducted using various sources. Some of these sources include dissertations, books and journals. Two separate surveys will also be conducted on a group of business organizations that employ unqualified employees. To collect data from these organizations, employers from the businesses will be supplied with questionnaires. Both quantitative and qualitative analysis will them be made on data collected. To determine reliability of the used method, a correlation will be run on the gathered information. Qualitative analysis of data will be done through brainstorming while quantitative analysis will be done through drawing histograms, scatter plots and calculating the correlation between the gathered information (Winchester, 2008, pp. 141-15).

Reference List

BBC News. (2009). UK bans non-EU unskilled workers. Web.

Corominas, A., Pastor, R., & Plans, J. (2008). Balancing assembly line with skilled and unskilled workers. Omega, 36(6):1126-1132.

Edwards, P., Sengupta, S., & Tsai, C. (2009). Managing low-skill workers: a study of small UK food manufacturing firms. Human Resource Management Journal, 19(1), pp. 40-58.

Geishecker, I., & Görg, H. (2005). Do unskilled workers always lose from fragmentation? North American Journal of Economics & Finance, 16(1): 91-92.

Holzer, H. (2007). Search Method Use by Unemployed Youth. Journal of Labor Economics, 6(1): pp. 1-20.

Krajc, M., & Ortmann, A. (2008). Are the unskilled really that unaware? An alternative explanation. Journal of Economic Psychology, 29(5):724-738.

Krueger, A. & Solow, R. (2008). The Roaring Nineties: Can Full Employment Be Sustained? New York: Russell Sage Foundation.

Kuhn, P. & Mikal. S. (2006). Does Internet Job Search Reduce Unemployed Workers Jobless Durations? Santa Barbara: University of California

Mollick, A. (2009). Employment Responses of Skilled and Unskilled Workers at Mexican Maquiladoras: The Effects of External Factors. World Development, 37(7):1285-1296.

Mukoyama, T., & Şahin, A. (2006). Costs of business cycles for unskilled workers. Journal of Monetary Economics, 53(8): 2179-2193.

Mullen, J., & Panning, J. (2009). Foreign Sourcing of Intermediate Inputs: Impacts on Unskilled Labor in US Manufacturing Industries. Eastern Economic Journal, 35(2):160-173.

Pollmann-Schult, M. (2005). Crowding-out of Unskilled Workers in the Business Cycle: Evidence from West Germany. Web.

Pryor, F. (1999).The Impact of Foreign Trade on the Employment of Unskilled U.S. Workers: Some New Evidence. Southern economic journal. Web.

Robcam. (2010). Poor Performing Employees Severely Impact Productivity. Web.

Swamy, M. (2005). Focus On Technology Change Versus Productivity Of Skilled And Unskilled Workers Through ‘Organizational Revolution’: Financial Management Appraisal Of Labor Command Theory Of Wage Differentials. Journal of Financial Management & Analysis, 18(1): 61-69.

Winchester, N. (2008). Searching for the Smoking Gun: Did Trade Hurt Unskilled Workers? Economic Record, 84(265):141-156.

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