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Company financial aspect of job rotation and it's pros and cons.

The relationship between organizational structure and employment changes from time to time and has it's ups and downs, It's pros and cons. Nonetheless, America has tried to maintain a fair relationship between organizational structure and employment changes along with improving company performances with a strong use of their workforces. Most companies and businesses have spent their time and effort into strengthening their workplaces under a label of HPWP's (High performance workplace practices). According to Burke & Moore (2000) some of these HPWP's include job rotation and company provided training. With the understanding of job rotation and company provided training it is safe to interpret that these are the pros of company financial aspect of job rotation, since training is always a positive outcome for workers to become better and enhance their skills leading to higher wages. According to Burke & Moore (2000) “we hypothesize that HPWPs are likely to beneﬁt workers because workers would be less willing to contribute in the manner these practices require unless they are assured of a share of the gains [this is also argued in Osterman (2000) ]. We examine this directly and ﬁnd that wages of workers employed in businesses that use HPWPs are higher than wages for workers employed in more traditionally organized ﬁrms.” The negative aspect of company financial aspect of job rotation deals with technological factors. According to Burke & Moore (2000) “Researchers have posited many theories as to why wage inequality has increased since 1980 in the United States. Much of the debate on the worsening position of unskilled workers has focused on the role of technological factors (see Berman, Bound, and Griliches 1994), along with other factors such as trade, declining unionization, and falling real minimum wages. In article we add an additional dimension to the discussion on inequality—the role of innovation in the organization of work”.

The Reverberating Effects of Job Rotation: A Theoretical Exploration of Nonrotaters' Fairness Perceptions

The effects of job rotation are mostly positive according to company and business theories, insofar job rotation helps workers discover their own strengths and weaknesses by self assessing and being trained. According to Black, Lynch & Krivelyova (2004), “One of the more widely used career development strategies is job rotation, which is a form of job-based experiential learning (Noe & Ford, 1992). According to one study of 694 U.S. business establishments (with 50 or more employees), at least 43 percent used job rotation (Osterman, 1994). And repeatedly, it has been suggested that rotational assignments are one of the primary tools employed by well-managed organizations for employee development (Brooks, 1996; Burke & Steensma, 1998; Gittleman, Horrigan, & Joyce, 1998; McCauley, Ruderman, Ohlott, & Morrow, 1994; Pearson, 1987; Saari, Johnson, McLaughlin, & Zimmerle, 1988).”

In conclusion to job rotation through companies, it is known and believed to be beneficial for everyone to succeed and elevate themselves in every way to improve the company in reference to their own work. According to Black, Lynch & Krivelyova (2004), job rotation was viewed to enhance knowledge of functional skills for work environments as well as enhancing employees skills for the company itself.

References:

Burke, L. A., & Moore, J. (2000). The Reverberating Effects of Job Rotation: A Theoretical Exploration of Nonrotaters' Fairness Perceptions. Human Resource Management Review, 10(2), 127-152. doi:10.1016/S1053-4822(99)00047-9

Black, S. E., Lynch, L. M., & Krivelyova, A. (2004). How Workers Fare When Employers Innovate. Industrial Relations: A Journal of Economy & Society, 43(1), 44-66. doi:10.1111/j.0019-8676.2004.00318.x