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Diminishing Marginal Utility : Workplace

In the workplace you will often see diminishing marginal utility, where the utility (satisfaction experienced per hour of work) experienced by workers drops as they perform their jobs over time. As a manager, what are some practical things you could do to raise utility for employees that also benefit the firm? In your answer use a company you currently work for or one you worked for in the past.

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Step 1:
There are several steps that the manager of the unit I work for now can take to raise utility for the employees. The manager can assign the entire production line to one supervisor; this will increase utility (satisfaction experienced) by the supervisor. Also, the manager should make sure that the production line keeps on working all the time. When there is idle time not only do workers and ...

Solution Summary

Diminishing Marginal Utility is discussed step-by-step in this solution. The response also includes the sources used.