In: Economics
Group Problem
G17-1
Uncertainty Describe a decision your company has made when facing uncertainty. Compute the expected costs and benefits of the decision. Offer advice on how to proceed. Compute the profit consequences of the advice.
If the company is planned to hire more workers to increase their
profit level in future. The entrepreneur of the company is
uncertain about the future regarding the hiring of employers.
He/she is also unaware about the skills of people hired. The new
workers may include highly skilled, skilled and unskilled workers.
If all the newly hired workers are highly skilled, the productivity
of the company and level of production increased. At the same time
the profit level also increased. The expected cost of this
uncertainty is the cost incurred during the hiring procedure of new
workers. The company should conduct interviews providing proper
level of salary to the new employers etc. included in the expected
cost. The high level profit earned through the highly skilled
workers made high profit to the company. This will reduce the
unemployment level in economy also. The firm tried to equate the
expected cost and benefit to avoid bankruptcy and failure of the
company.
Efficient proceedings to keep in mind by the owner of the company
are making match tasks for the employers according to their skills,
efficient skills, making the goals more clear and focused,
imposition of proper incentives to the employees, proper training
and development of the employees etc. Giving preference to these
things will improve the level of production to a higher place and
at the same time profit also. Comparing the situation before and
after the hiring, the company make high level profit only after the
hiring. On the other hand, the company faced a cost during the
hiring of new workers. Taking efficient and highly talented workers
to the firm will increase the profit and maintain the cost occurred
during the hiring procedure.