One of the problems of the economy is that outmoded business and economic ideas become entrenched and difficult to remove even when it's discovered that doing things differently would actually make more money. It's not good business to overwork and underpay your employees, so why does it continue?
My only personal insight comes from working in a contract industry: If we don't keep our costs down, my division could lose its primary contract with the state. Some other company that promises to do the same thing for less money could replace us next time our contract comes up and then our division would be closed down and everyone would have to find work elsewhere, hopefully in the same company. We have a 'good quality, medium price' niche; and while I personally think the people who report to me should get paid more, it doesn't take malice on the part of upper management to explain why we don't.
On the other hand, if you're making widgets to sell, I can't fathom why you wouldn't just assign hours and pay wages that optimize the return on your investment.
My only personal insight comes from working in a contract industry: If we don't keep our costs down, my division could lose its primary contract with the state. Some other company that promises to do the same thing for less money could replace us next time our contract comes up and then our division would be closed down and everyone would have to find work elsewhere, hopefully in the same company. We have a 'good quality, medium price' niche; and while I personally think the people who report to me should get paid more, it doesn't take malice on the part of upper management to explain why we don't.
On the other hand, if you're making widgets to sell, I can't fathom why you wouldn't just assign hours and pay wages that optimize the return on your investment.
I'm not anti-Christian. I'm anti-stupid.
