You Make the Call-Situation 1

question 70

Essay

You Make the Call-Situation 1
Steve Jones is the 35-year-old owner of a highly competitive small business that supplies temporary office help. Like most businesspeople, he is always looking for ways to increase profit. However, the nature of his competition makes it very difficult to raise prices for the temps' services, while reducing their wages makes recruiting difficult. Jones has, nevertheless, found an area-bad debts-in which improvement should increase profits. A friend and business consultant met with Jones to advise him on credit management policies. Jones was pleased to get this friend's advice, as bad debts were costing him about 2 percent of sales. Currently, Jones has no system for managing credit.

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Definitions:

Adjustment Process

A method or series of actions taken to adapt or conform to new conditions or changes.

Reality Shock

The stress and disorientation that individuals experience when they encounter a significantly different reality from their expectations.

Pre-employment Stage

The phase in the hiring process before an individual becomes an official employee, typically involving recruitment, interviews, and assessments.

Psychological Contract

The unwritten, implicit expectations and beliefs about the reciprocal obligations between employees and employers, impacting job satisfaction and loyalty.