Could I please get help with writing an abstract, with keywords, for the following short essay? I've copied the paper below. The paper covers employee motivation in the workplace and focuses on opportunity costs. Thanks!
For a business to thrive in all aspect of its operations, it is vital for the top management to implement strategies to motivate their employees. These motivational strategies vary depending on the individual employees. The strategies are vital as they lead to improved performance levels, an increase in employee turnover, and reduced absenteeism. It is vital for the top management to determine the optimal motivational strategy to implement based on an array of aspects. This report focuses on the sunk costs in contrast to the opportunity costs involved in the implementation a motivation strategy and determining the short and long-term increases in projected profitability.
Opportunity cost is a vital accounting concept that is applied in different fields of business choices. Opportunity cost is defined as the value of a forgone item or alternative in a list of items to be purchased or decisions to be made. This concept applies in situations that involve tradeoffs between two or more options - it is expressed as the relative cost of an alternative based on the next-best alternative (Kurzban et al., 2013). For example; a business has to decide between purchasing desktop computers, printers and scanners with a limited budget. If they choose to buy computers and printers and forego the scanners. The opportunity cost ignored would be the value the scanners would earn for the business.
The phrase, "spend money to make money" is very common when it comes to business activities. Their budget may allow the business to spend money on salaries, inventory or rent. Once the business has spent the money in according to their budget, it considered as a sunk cost. Without regard for what the money is spent on, sunk cost refers to the money already spent and permanently lost; therefore, cannot be recovered or repaid. An example of sunk cost is the money spent on office space, rent. Once a business pays rent, they cannot recover this money; however, they have the availability of office space. Although a significant aspect when it comes to budgeting when it comes to decisions on whether to continue investing in ongoing projects, sunk costs should not be considered. Relevant costs play a bigger role in such a decision as sunk costs cannot be recovered (Baliga & Ely, 2011).
These two concepts are important for a business as budgeting is among the pillars of a profitable industry. These concepts aid managers to make decisions that ultimately affect the performance of their business. When it comes to implementation of a motivation plan for employees, there is numerous opportunity cost to be considered. In an approach where the employees prefer monetary items as a reward and to help them remain motivated, the company has to budget a significant sum of their revenue towards this approach. The opportunity cost ignored in such an approach would be a different field in which that amount can be directed towards. In a short-term, the company might face a reduction in their profits as they attempt to implement such an approach.
Conclusively, research indicates that motivated employees result in an increased labor output. Therefore, in the long term, the business is able to increase their profits based on the increased labor and productivity of their stuff. Companies that have implemented motivational programs have reported having an average of approximately 15% increase in their profit. This increase, therefore, makes the value of the forgone alternative less significant than investing in such motivational programs.
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