Before I came to Australia, I was working in my father's company and I have witnessed a lot kinds of decisions made by a real estate company. one of the most profound impact on me is the new promotion of labor law in China which is employees are given the appropriate safeguards from employers such as labor contracts , insurance and pensions. However most of the workers in a real estate company are informal staff that they undertake a large number of construction workers , and sales staffs . Most of our staff is held in no fixed office location . For example, sometimes they work in one city for 2 years and sometimes work in another city for 5 years which makes the worker mobility becomes very high. if we simply follow the new labor law, like every employees have a contract to provide proper protection , whether it will a huge expenses on human resources and financial resources. So then as Head of Human Resources Department manager, he decided to no longer directly employ high liquidity positions like construction workers and sales staffs . however in the labor service company , there is no direct employment relationship or contract between the company and the high liquidity employees. the company only have to sign with labor service company and all kinds of variety of labor laws to protect those involved will be borne by the labor service company who is now responsible for these labors. it can reduce the company's expenses and human consumption and it also needed to avoid the accident site responsibilities at the same time.
Analysis of the decision
After the 1950s , it was recognized that the establishment of the " Hypothesis of Economic Man" on the rational decision theory is only an ideal model. it is impossible in practice to guide decision making . Herbert Simon made a satisfactory standard and bounded rationality standard , with " Hypothesis of Social Man" instead of " Hypothesis of Economic Man " , greatly expand the field of Decision