Throughout
history, humans have learned to survive through interaction with others. In
this time in history, the world is smaller than ever before through technology
globalization (Daft, 2013). Businesses are competing to survive in a competitive
market that has never been witnessed before in history (Daft, 2013). The goal
of every successful business is to increase productivity without having to
spend more money (Daft, 2013).
Efficiency usually occurs by increasing productivity and reducing cost,
which equals higher profit margins (Daft, 2013). Efficiency is the ability to
get more for less.
One
way companies try to obtain efficiency is through outsourcing. Outsourcing is
an organization receiving goods, labor and supplies from outside suppliers
(Daft, 2013). Most often outsourcing is
done where labor and the cost of goods are cheaper. This is a concern in
America because many believe that outsourcing removes needed jobs in this
country. The data collected on the effects of outsourcing have all come up
inconclusive (Munch, 2010).The effects of outsourcing are often without solid
supporting evidence that deterioration of a market takes place in economies
where outsourcing occurs (Munch, 2010).Out sourcing has been part of the
American economy since its beginning.
Data
from the board of labor and statistics reveals that one-third of all workers
that lost jobs due to outsourcing had to accept jobs at a twenty percent pay
decrease .(www.bls.gov ). Many of the
jobs that were outsourced were low- skilled jobs (Munch, 2010). Three million
American jobs have been lost to outsourcing in the United States in the last
five years .(www.bls.gov ).Many of the displaced workers are forced to take
government payouts to gain future employment, causing increase taxation for
business as well as private citizens. Research concludes that by controlling
the duration of dependence on government programs more individual will return
to the job market at a faster rate (Much, 2010). The data shows an insignificant correlation
between outsourcing and overall employment rates (Munch, 2010).
Other researchers say that the evidence that outsourcing does not
hurt the American economy is misconstrued (www.bls.gov).These workers have just
stopped looking for work. Many of the
jobs that are outsourced are low- skill jobs.
By outsourcing low- skilled jobs, we are all paying to assist in re-
employability of these displaced American workers on the back of the taxpayers. That keeping operating costs
low does not always increase profits, because when money is not invested in the
training of employees the quality of the product decreases (Munch, 2010). Low
wages equals poor workmanship. The workers of outsources products many times
have unsafe, unsanitary working conditions and are exploited. As a Christian’s
leader, there is a responsibility to be a good steward of all the resources of
a company to include people and money. By following the principles set forth in
the Bible about treating all those under the leader fairly, God promises
blessing on the business leader. The Bible states “The blessing of the Lord, it
maketh rich, and he addeth no sorrow with it” (Proverbs, 10:22, NIV). The
profits that a Christian leader makes have to be weighed against the principles
set forth in the Bible for true gains to occur.
References
