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Hiring, Production, Supply and Cost

As a manager, how would you decide how many workers to hire? What factors might play a role in your decision?

With retention becoming increasingly important due to the cost of hiring and training, how would you, as a manager, address retention issues? Include a summary of how this would impact your overall cost of production.

If labor costs rise you may consider substituting capital input for labor input. What factors do you need to consider when making this substitution? If capital cannot be substituted for labor, what other options do you have to address the issue of rising labor costs?

Solution Preview

The hiring of employees depends on the amount of work available. The "manager or business owner must interpret the cues and take the most appropriate staffing action. Some obvious factors to consider include existing revenue, inventories, and cash flow" (Hoffman, 2001, para. 1). The biggest role in hiring would be the company growth or development over the time of a year. This factor will help a ...