Question

The board of director of your company is considering whether to employ the services of some experts or allow their employees to work on the methods of improving their production process and product brands As a manager ,how would you advise the board on this decision? (write about 20-25 lines in the field of Managerial economics)

Answer 1

answer-

I would advise the Board to allow organization's employees on the methods of improving production process and product brands. This option is economical because it helps to reduce cost of organization as well improve performance of employees by improving their skill variety.This decision is taken by me because of pros and cons of each option-

Pros of option one means employing experts means having workers who have specialized knowledge so they would help in achieving results in less time. second is employing experts would be able to improve production process by quality control, inventory control and improve brand image by focusing on creating demand of products by marketing and promotion.

The cons of this option is that Employing experts need separate department in current organization. This can make organization structure more complex. Roles and responsibilities can cause conflict of interest among regular employees. hiring experts also get higher compensation than normal ones which increase cost of business. they are also raise legal issues like they are eligible for employment benefits or not.

The pros of second option means allow employees to work means training will be given by supervisor or manager to improve process and business functions so that employees can show higher performance. This also improve loyalty of employees. This means employee turnover rate will be low if management focus on employee's potential and respect them by giving them chance to achieve results rather than hiring experts.Employees will more knowledge and skills will benefit the organization by becoming more skilled . this also create environment of learning organization.this reduces the cost of business as compared to hiring experts.

The con of this approach is that initial cost of training . This is also little time consuming because employees would may show some resistance at start but they will get along by the support of management.