Final answer:
The discussion is about the insider-outsider model in a business context, where insiders are existing employees familiar with company procedures, and how their treatment, like wage cuts, can impact the organization's productivity.
Step-by-step explanation:
The question refers to the concept of the insider-outsider model of the labor force within an organization. In this model, individuals who are already employed by the firm are considered insiders. These insiders are key to the smooth functioning of the company as they are familiar with the organization's routine procedures, play a role in training new employees, and utilize the firm's products or services. The treatment of these insiders is crucial; for instance, cutting wages may lead to alienation, which can adversely affect the firm's productivity and future prospects. If we consider managers as important internal customers, providing exceptional service to them enhances job satisfaction and can lead to additional opportunities.