Study Questions Test 1 Management 3240 Fall 2014 Exam Week October 27 31 1 What are the basic ideas presented in the Ripple Effect video What industries were mentioned as affected both directly and indirectly http www youtube com watch v UMqyi6s41iE playnext 1 list PLC9904CA0CE2D115C feature results video Basic ideas are that many industries are affected by the recession through a ripple effect When one person is laid off there is a domino effect because that person spends less money out therefore the places spent money at before are also affected and have to layoff their employees because they do not have enough money to support them Industries affected A bank president was laid off so they stopped eating at their favorite restaurant that restaurant felt the hit of not getting as many customers their employees cut back their spending because of lack of tips the company the restaurant bought their meat from had to layoff butchers and drivers because they weren t getting enough business 2 Understand how the recession has impacted social behavior at work Specifically know the research as related to sucking up increasingly demanding management and employee s perceived financial well being More than 70 percent of both men and women in the survey confirmed that the recession has significantly increased the stress levels of employees in recent months More than one half 55 percent reported that management has grown increasingly demanding over this period More than 65 percent predicted significant job changes to occur within one year causing employees to grow progressively more concerned about job status 80 percent of employees reported being nervous about their long term financial well being More than 60 percent were asked to find ways to cut costs on a weekly basis More than 40 percent of employees reported increased incivility i e backstabbing sucking up and politicking as a means to stay employed in the event of a layoff 3 Have an understanding of the Foreclosure States Specially know which states are really bad high foreclosure and which ones are pretty good low foreclosure High foreclosure Florida Georgia Illinois Utah Arizona Nevada California High foreclosure states Florida Georgia Illinois Californica Nevada Arizona and Utah Low foreclosure states North and South Dakota Minnesota West Virginia Mississippi and Arkansas Be able to discuss the research related to parents perceptions of their children s future e g Gazing into the Future and The Satisfaction Gap 4 5 6 Know the specifics of the Flat Paycheck Recovery Unemployment figures are creeping down reaching their lowest rates since 2009 Third quarter 2013 GDP figures were revised up to a whopping 4 1 which means job growth will likely continue But the jobs being created aren t like those we ve lost While two thirds of the jobs lost during the recession were middle income jobs about half of those created since have been in low wage sectors like tourism hospitality and retail sales What s more a greater proportion of them are temp positions than in recoveries past The result is that although wage growth has begun to pick up a little bit it s far below what most economists would expect at this stage of a recovery In an economy that s 70 based on consumer spending that matters a great deal If people don t get paid more they won t spend more and that will hold back private sector growth Government shutdowns partisan politics and a global slowdown haven t helped much either A number of reasons have been given for companies failing to hire more workers even though it may seem that they are in a position to do so What were the factors discussed Know the specifics as outlined 1 Seem to be doing okay with what we have 2 Trimmed a lot of fat in the past few years and got better at things 3 Earnings may sound good but everything is relative 4 Uncertainty about another recession 5 Uncertainty about the government 6 Uncertainty of personal spending 7 Can I get it cheaper elsewhere 8 Don t want to go through that again 9 Fiscal Who Knows 7 What was the general theme outlined in the Christian Science Monitor s article on job meaning How did people perceive the importance of work How were male and female participants different Hochwarter described the financial downturn as a wakeup call for many people who thought they were doing what was best for their family but who now question the choices they made Nearly 40 percent of workers admitted the job was not as important to them now as it once was and 23 percent realized they had put it ahead of family and free time More than 70 percent of workers said most days at work it felt like the day would never end Hochwarter and his team research associates Tyler Everett and Stuart Tapley also found the impact of the recession was different on men and women While men thought their job was not giving them what they thought it would and left them feeling stressed and like they were going nowhere women felt their job was taking them further and further away from family 8 Have an understanding of the major points outlined in the attached article Why are U S children s futures uncertain as a result of the recession The future of U S children also looks precarious Tyler Cowen argues that changes in technology and trade are hollowing out the middle class leaving a larger chasm between economic winners and losers with very few in the middle People who thrive in the future will do very well The rest will have a harder time getting by Previously parents could safely assume that their children had good shots at landing middle class lives The stakes are now higher and the risk of failure larger How do younger people of this generation compare to those who lived through the Great Depression Younger Americans may never recover from the recession s wake up call to risk and the economy might suffer for that The Great Depression scared a generation away from taking financial risk Many Americans who came of age during the Depression never invested in the stock market To be fair they never had to because many had company sponsored pensions to support them in retirement Millennials have internalized the same fears with 13 percent describing themselves as financially conservative a rate matched only by World War II babies now ages 68 and up according to a recent UBS survey PDF They are holding more in cash and less in stock than other generations have done The fortunes of the Depression s children were eventually bolstered
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