Mrs. Tyler is trying to do everything she can do. On the other hand, her firm...

Mrs. Tyler is trying to do everything she can do. On the other hand, her firm wants its workers to be as productive as they can be. Mrs. Tyler argues that she has general knowledge so that her firm will benefit from her broaden skills. On the other hand, her firm wants its employees to get a limited task they can master.

Explain the economic issue(s) about the dispute between Mrs. Tyler and her firm!

Solutions

Expert Solution

Answer) The major issue between Mrs. Tyler and her firm is that of specialization,Mrs. Tyler here wants to use her general knowledge and skills in various functions and thinks it will be helpful to the firm as she will be able to contribute in different areas,her thought process is that by being in a generalist position,she can save company a lot of cost as she can contribute in different departments and work as an all rounder employee,now her firm does not believe in employees focusing on multiple work fronts,firm instead believes in what is known as specialization in economics,wherein they expect employees to have proficiency in whatever they do and master it,their reasons for this possibly could be better quality of work as person specializing will be able to do better,it will save time as person knowing their work and focusing on that will mean work getting done quickly and it will mean more accountability,another way to look at this is through concept in Economics known as comparitive advantage,where firm is looking for someone who has comparitive advantage over others to do a particular job while Mrs. Tyler is stating that she can help firm by providing more help in multiple jobs,another way in terms of Economics to look at this dispute is through opportunity cost,wherein Mrs. Tyler thinks that her addition will lower firm 's opportunity cost in terms of resources required in different jobs as she can handle multiple jobs,while firm think her addition will actually increase opportunity cost of doing a work as they would still require specialists to do the work and she will be just doing redundant work.

Answer is complete.Thank you!

Rahul Sunny answered 2 years ago

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