The Future Manufacturing Company Employed a New Operations Manager

question 37

Essay

The Future Manufacturing Company employed a new Operations Manager.The previous manager did not keep accurate records and the new manager does not have an accurate account of the departmental historical data in 2012 because the employees received a wage increase.The managerial accountant provided the new operations manager the following historical data:

The Executive Director asked the new manager how much the department would save if they considered a reorganization of the manufacturing operations.The specifically asked if a reduction in staff,from 25 full-time employees,to 20 full-time workers is cost effective because the new computer system can absorb the job duties of those 5 employees.The employees heard rumors about a potential layoff in the department and the employee morale is low.
Next,the new manager wants to predict the amount of manufacturing hours based on a reduction in staff.

Required:
Compute the historical cost data,the predicted cost data,and discuss the amount of savings to the department if they reorganize and eliminate 5 workers.Next,compute the new cost data if the manager provides each employee a 10% salary increase.Will an increase in salary increase employee morale? Why or why not?

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Definitions:

Systemic Discrimination

A form of discrimination that is embedded in the policies, practices, and procedures of organizations or systems, leading to unequal opportunities or outcomes for certain groups.

Fatalistic Belief

The belief that all events are predetermined and therefore inevitable, often leading to a resignation to one's fate.

Culture of Poverty

A fatalistic belief system held by the poor as an adaptation to systemic discrimination.

Perspective

An attitude towards or a way of regarding something; a point of view influenced by one's beliefs, experiences, or culture.