lecture_4 - ECOS3003 Lecture 4 1 Bundling tasks into jobs...

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Unformatted text preview: ECOS3003 Lecture 4 1 Bundling tasks into jobs and subunits Bundling tasks into jobs- second aspect of a job is variety of tasks- managers face economic tradeoffs when they bundle tasks Speed versus broad task assignment Example: financial software distributor- two primary activities (functions) selling software after-sales service- two types of customers ECOS3003 Lecture 4 2 Function Sales Service Individuals Business Task 1 Task 3 Task 2 Task 4 Customer type Example ECOS3003 Lecture 4 3 Each task takes 4 hours, so need two employees to work per day Structuring the jobs 1. Could spee in functions- Speed task asssignment 2. Spee in customer-type (provide sales& service to individuals or biz- Broad task assignment ECOS3003 Lecture 4 4 Benefits of speed task assignment 1. exploiting comparative advantage- match people with jobs based on skills, training; employees concentrate on speciality- principle of comparative advantage suggests speation often will produce higheroutput then employees producing a broad set of tasks: eco of scale 2. Lower cross-training expenses- train employees to complete on basic function; more broad tasks, more training- level of education may need to be higher across employees (wages higher) ECOS3003 Lecture 4 5 Costs of speed task assignment 1. Forgone complementarities across tasks- sometimes performing one task can lower cost of same person doing another- costly to transfer info between people- some tasks go naturally together 2. Coordination costs- activities of specilised employees have to be coordinated (ie sales order to service dept) 3. Reduced flexibility- ie someone on holiday/sick leave ECOS3003 Lecture 4 6 Incentive issues- sometimes speed task assignment better- sometimes broad task assignment better With broad task assignment incentive contract needs to provide motivation as to - how hard to work- but also how to allocate time among tasks; need to balance between tasks- sometimes some effort more easily measured than others (an incentive scheme that rewards one tasks skews effort into that area) ECOS3003 Lecture 4...
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lecture_4 - ECOS3003 Lecture 4 1 Bundling tasks into jobs...

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