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Additional Case 2.2
You are the HR manager at Steel City, Inc., a firm that is considering going global in its product line and markets. The president realizes that this may require a reorganization. She wants to move into new international markets with minimum time and effort. She also wants to reduce management overhead and labor costs.
At the same time, employees have been complaining about their work. Jobs are repetitive, and employees don't know how their work fits into the big picture. The president wants to provide employees with satisfying work, autonomy, and a performance-based pay system. She wants to give them as much control as possible and remove layers of management.
-Refer to Additional Case 2.2.Along with the reorganization,you need to do some job redesign.Given the specific employee complaints,your best approach would be:
Relevant Range
The range of activity or production level within which the assumed cost behavior patterns are valid, typically influencing fixed and variable costs.
Variable Costs
Costs that change in proportion to the level of production activity or volume, such as materials and labor directly involved in production.
Fixed Costs
Expenses that remain constant regardless of production or sales volume in the short term, like lease payments or wages.
Relevant Range
The range of activity within which the assumptions about cost behavior hold true for a specific operation or business.
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