Cards (4)

  • Businesses that are pursuing growth in markets in which demand is strongly price elastic may opt to minimise the extent of employee representation for fear of wages being forced upwards as a result.
  • Avoiding any employee representation in a growing market may help a business to control its labour costs and to maintain its price competitiveness
  • What will avoiding employee representation do in a growing market?
    It will help maintain labour costs and its price competitiveness
  • Businesses that are pursuing social objectives may take an entirely different view , placing lower emphasis on generating profits and increasing market share and therefore would welcome employee representation and involvement in decision making