Can the addition of more employees actually reduce labor costs and increase productivity? Discuss

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Honda just announced an addition of 300 employees at the Greensburg Plant.

Please determine the Answers to the 9 follow Questions and draw the conclusions.

Question:
Can the addition of more employees actually reduce labor costs and increase productivity?

Factors:
1) Greensburg currently employs 2000
2) Greensburg currently produces 20,000 units per week
3) Greensburg\’s currentmean wage is $21.00 per hour 40 hour, 5 day week

4) Greensburg will hire 300 new employees
5) Greensburg will increase production 5000 units per week
6) Greensburg\’s new hire mean wage is $17.00 per hour 40 hour, 5 day week

Determine: 5 Points Each
1) What is Greensburg\’s current weekly productivity rate?
2) What are Greensburg\’s current total weekly wages?
3) What is Greensburg\’s current weekly wage per unit rate?

4) What is Greensburg\’s new hire weekly productivity rate?
5) What are Greensburg\’s new hire\’s total weekly wages?
6) What is Greensburg\’s new hire weekly wage per unit rate?

7) What is Greensburg\’s new total weekly productivity rate?
8) What are Greensburg\’s new total weekly wages?
9) What is Greensburg\’s new total weekly wage per unit rate?

10) CONCLUSIONS: 5 Points
Did Greensburg achieve lower labor costs? Why?
Did Greensburg achieve increased productivity? Why?

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