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31 August, 09:46

A small company that manufactures special-order wood furniture has kept its employees busy on a 40-hour-a-week schedule for the past two years. The company just received the largest contract in its history from a Saudi Arabian company opening offices in the area. There is no expectation of repeat business from the Saudi company. In order to complete the contract in the required six months, additional skilled woodworking manpower is needed. Under these circumstances, to avoid an expected labor shortage, the best option would be:

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  1. 31 August, 11:45
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    These are the options for the question:

    A. Retrained transfers

    B. Overtime

    C. Technological innovation

    D. New external hires

    E. Turnover reductions

    And this is the correct answer:

    B. Overtime

    Explanation:

    Because the need for new labor is urgent, since the Saudi Arabian contract will start soon, and cannot be obtained in the future, and also because the company needs highly skilled workers, the best strategy to use is that of overtime.

    So far, the workers have been clocking the regular 40 hours a week schedule, so there is room for overtime, for example, making them work for 48 hours a week, with the incentive of overtime pay, and perhaps, additional bonuses.
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