Symbiotic relationship between value chain and job option
There exists a complementary relationship between creating value and providing jobs. Company generates value when it uses its resources to offer something valuable to its customers. When business expands, work load increases which provides opportunity to skilled and semiskilled workers.
However in the last few years this relationship has become more and more insignificant. In Hong kong there are several multinational companies that are expanding. Still people are finding it difficult to find one job in Hong Kong. Increasing number of companies gives hope that the economy will improve, but the situation highlights the gap in the process. Two most important factors which show there is a correlation between business growth and job availability. These are:
1. If business grows, so will production which will require more manpower.
2. If demand increases, the company has to expand its business which will again require more manpower.
Even if these jobs are contractual, with passage of time it will become well paid jobs. This is the reason why the Philippines in the 20th century became a prosperous and middle income country with the rise of business.
When Microsoft, Apple, Google and many other high branded companies show double digit growth, it is expected that it will create huge jobs. But they have created a few jobs and for sure it will go to highly-skilled middle class workers.
Now business are no longer ethnocentric but have become polycentric, which have opened the door for the other country’s middle group. This advancement has provided more options to companies looking for highly skilled workers at cheap rates. Countries like China, Australia and South Asian countries have high percentages of middle class which get easily attracted towards Microsoft and Google.
Government and big business practices need to come up with different policies for the growth of the society, else big companies will keep prospering and society around them will struggle. Though the government has promoted research, entrepreneurship, start-ups and many more to strengthen them still they need to find new ways in the short term. Because if society gets annoyed, the risk on the government will increase. There are numerous problems which can be addressed through these business entities like efficient resource utilisation, health-infrastructure development, education, poverty redressal, but for this companies are required to handle the issue of jobs first.