Answer to Question #205501 in Management for Sesona Nontshokwen

Question

Compare the three aggregate plans (Level Output, Overtime and Temporary Employee). What will you advice the company if this was a newly established branch with no workers, and they are faced 

Answer 1

 

Level Output, Overtime and Temporary Employee Comparison

Level output is an approach to aggregate planning that has the aim of regulating production at a continual level, nevertheless of flux in demand. It consists of storing the product in times of the low demand and is not hence an option that is available to the providers of services. The welfares include maintaining a steady workforce and the peak use of capacity. On the other hand, a temporary employee is frequently hired so as to cover the nonexistence of a permanent employee on a temporary basis. This may be because of the leave of absence for motherhood or even perhaps an infirmity on the part of the permanent employee, (Manrique et al., 2016). This differs to the overtime since overtime is employee that surpasses their usually planned working hours. While a widespread overtime meaning refers only to those hours that are worked outside of the normal working timetable, overtime usually refers alongside to the employee’s remunerations of such work. There are a number of advantages to hiring temporary or seasonal employees, outside of the above-mentioned need to fill a temporary slot. Arguably, it can result in the financial savings, especially when considering certain welfares, like the medical as well as sick pay, retirement and also vacations, (Manrique et al., 2016).

I would advise the company to always prefer having both overtime and temporary employees. This is because temporary employees they are fast and make an instant difference.  If the company has steady employee absences, temporary need to cover maternity leave, or have cyclical demands, hiring temp staff removes the need to employ a permanent resource that is not required year-round. On the other hand, overtime employees have more flexible workforce, (Manrique et al., 2016). In explaining this, the ability to deal with the bottlenecks as well as busy periods, cover of absences and also staff shortages without the need to recruit additional staff is or much advantage to the company.

Reference

Manrique , P., & Guerra D & Baez, R. (2016). Exploring the influence of ethical climate on employee compassion in the hospitality industry. Journal of Business Ethics, 133(3), 605-617.