Managerial Decision

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Managers Decision to Hire Temporary or a New a Worker xxxxxxxxxxxxxx BUS 640 xxxxxxxxxxxxxxxxx June 6, 2011 Managers Decision to Hire Temporary or a New Worker The decision to hire temporary workers or a new worker to handle the increased demands for the company’s product can be a very hard decision for companies to make. In this paper I will discuss what takes place when making such an important decision to increase production and save the company money. This paper will include an executive summary, definition, factors or cost, measurement, analysis and summary. Executive Summary Should a company hire temporary workers or hire full-time workers to handle increase demand for the company’s product? Companies are…show more content…
The sole purpose of these employees is to gain permanent work as a part-time or full-time hire. The implicit costs that management incurs are slim marginal monetary opportunities of utilizing competent individuals from a reliable source from a network staff. The implicit costs are solely due to the organizations non- monetary payments to utilize one’s own resources. The explicit cost includes the use of a secondary entity to supply the reliable resources necessary for the tasks. The opportunity costs of losing a few slackers due to personal hardships might mean that they will soon shape up only gives a hint to some of the opportunity costs involved in the hiring of temporary workers or new workers to handle to handle new demand for our product. Measurement In Managerial Economics: foundations of business analysis and strategy, there are several means to measure data on a statistical level. Therefore in this case management forecast sales on a given day to determine the feasibility of whether or not hire of temporary workers or hire new workers could assist with demand of products. Expenditures such as organizations total sales play a major role in the decision making process. Production and cost can be closely examined by any member of the management staff. Regression analysis is a statistical tool used by
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