Contrary to a common misconception, the cost of carrying inventory significantly exceeds bank interest costs on the investment in inventory. Other holding or ‘hidden’ costs of inventory often not considered include: storage, equipment, labour, obsolescence, slippage, damage and insurance. The actual full cost of holding inventory, including these costs, can be many times the interest cost. Furthermore, there is the opportunity cost of otherwise investing the cash tied up in excess inventory into other profit generating areas of business.
A vital component to managing staff is providing constructive feedback on performance. When structured correctly, constructive feedback can both improve performance and also motivate staff. However if the feedback is not constructive and managed poorly, the result could have a negative impact on performance and motivation of the staff member.
When conflict is avoided in the workplace the consequence can be devastating to an organisation, its culture and its employees. Performance levels and morale of employees involved decrease along with organisational productivity, while collaboration between employees and teams diminishes impacting the organisation's ability to identify solutions.
The Importance of Feedback to Unsuccessful Candidates
May 29, 2016
When an organisation (or recruitment agency) advertises a job vacancy, they expect candidates to invest significantly in the application process. They expect candidates to draft a standout cover letter aligning their skills to key selection criteria, along with highlighting why they are the best candidate for the job.
Are Workplace Demotivators Severely Impacting Employee Morale?
May 25, 2016
When employee morale or performance levels are low, organisations often focus on initiatives to motivate employees. However while motivational initiatives are endeavouring to inspire employees to work harder, they do little or nothing to eliminate the factors that may be demotivating those same employees.