Hr Productivity Essay

316 WordsDec 15, 20142 Pages
Case Study 1. XYZ Bank employs three loan officers, each working eight hours per day. Each officer processes an average of five loans per day. The bank’s payroll cost for the officers is BDT 820 per day, and there is a daily overhead expense of BDT 500. a. Compute the labor productivity. b. Compute the multifactor productivity, using loans per BDT cost as the measure. The bank is considering the purchase of new computer software for the loan operation. The software will enable each loan officer to process eight loans per day, although the overhead expense will increase to BDT 550. c. Compute the new labor productivity. d. Compute the new multifactor productivity. e. Should the bank proceed with the purchase of the new software? Explain. 2. ABC Group of Companies produces apple crates, which it sells to growers. With the current equipment, ABC GROUP produces 240 crates per 100 logs. It currently purchases 100 logs per day, and each log requires three labor hours to process. ABC GROUP is considering the hire of a professional buyer who can buy better quality logs at the same cost. If this is the case, ABC GROUP can increase production to 260 crates per 100 logs, and the labor hours required will increase by eight hours per day (for the buyer). a. Compute the labor productivity for the current method (i.e., no buyer). b. What will the labor productivity be if ABC GROUP hires the professional buyer? Suppose that ABC GROUP spends BDT 12 per hour for each worker who constructs the crates. The buyer, however, is paid BDT 24 per hour. The material cost is BDT 10 per log (regardless of who purchases them). c. Compute the multifactor productivity for the current method, using crates per BDT cost (labor +

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