Labor Planning
Labor planning is determining staffing policies that deal with (1) employment stability, (2) work schedules, and (3) work rules.
Employment-Stability Policies
Employment stability deals with the number of employees maintained by an organization at any given time. There are two very basic policies for dealing with stability:
Follow demand exactly: Following demand exactly keeps direct labor costs tied to production but incurs other costs. These other costs include (a) hiring and layoff costs, (b) unemployment insurance, and (c) premium wages to entice personnel to accept unstable employment. This policy ...
Get Operations Management: Sustainability and Supply Chain Management, Twelfth Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
