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A Manager of a Small Company Makes the Following Statement

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Essay

A manager of a small company makes the following statement - "We need to keep hiring additional workers up to the point where the marginal productivity of the last worker we hire is at its maximum. This way we can maximize the total productivity of the firm." Critically evaluate this statement.


Definitions:

Flex-Time System

An employment schedule arrangement that allows workers to choose their work hours within agreed limits, promoting work-life balance.

Core Time

The period during a workday in which all employees are required to be at work, typically to ensure overlapping work hours for collaboration.

Management by Objectives

A management strategy in which employees set goals that align with the organization's objectives, improving performance and motivation.

Manager-Employee Interactions

The dynamics and communications that take place between managers and their employees in the workplace.

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