Budgeting and Planning: Impacts of Tight Labor Standards

Budgeting and Planning
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Budgeting and Planning
Miller Manufacturing managers and line workers might exhibit negative behaviors due to the tightening of labor standards by the newly hired cost controller, Kate Daniel. In particular, they might resist the change since they have never worked under such stricter standards. Some managers and workers might be demotivated due to increased work pressure. In addition, dysfunctional behaviors might lead to increased conflicts between managers and line workers.
Besides, Kate can take some actions to mitigate the adverse behaviors identified above. First, she should allow all stakeholders, including departmental managers, accountants, and line workers, to participate in the process of revising the labor standards. She should explain the importance of revising the labor standards and consider stakeholders’ contributions. Moreover, Kate should introduce employee benefits, particularly for those who meet the set standards. Most importantly, she should ensure that line workers are not working under pressure, which might cause demotivation and job ...