Corporate Decisions: Temporary Workers and Implications

Corporate Decisions: Temporary Workers and Implications 1

Corporate Decisions: Temporary workers and Implications

Laura Conley

BUS640: Managerial Economics (MAF1047A)

Professor Michael Blagg

January 10, 2010

Corporate Decisions: Temporary Workers and Implications 2

Executive Summary

            The scenario examined is whether our company should hire temporary employees verse hiring permanent employees to handle new demands for our product. This determination is relative to the price of our goods. Our Content Managers and Director of Operations are continually facing challenging decisions to meet demands while operating within the challenges posed by our countries current economic circumstances. In business human resource planning and inventory theory have been developed independently; although it may at appear that these areas are unrelated, there is a strong relationship. It is pivotal for our organization to make solid decisions to sustain a balanced flow of resources and incomes. The occurrence of temporary employment has consistently been increasing in most industrialized countries since the late 1970s. Temporary and contract employment arrangements no longer function only as a “quick fix” for employment vacancies, but has become an basic feature to solve some human resource needs. Temporary workers have always been used to cover for holiday and sick leave; there is some evidence to suggest that they are now providing employers with a buffer against market uncertainty (Meager, 1986). The law of demand mentions the concepts which visibly simplify that quantity demanded increases when prices fall and quantity demanded decreases when prices rise to a degree. With that said, management must be aware of what the maximum price should be to render a product or service. A qualitative forecast serves to make some of the practical predictions to determine if whether the options are economic suitable,...