Topics: Costs, Mathematics, Economics Pages: 5 (1342 words) Published: October 29, 2014

a.Why does Budget Director Paula Harper feel such disappointment in Water Department Chief Engineer Mason's behavior - and vice versa? Budget Director Paula Harper felt disappointed in Water Chief Engineer Mason’s because in her point of view as a Budget Director, she had to make a cogent recommendation to the Manager about additional personnel request. To do that, she had to have all information that she asked to Mason and his staff. This information would be used to determine whether they need and financially able to recruit additional personnel, how much was additional personnel they should hire, and the benefit they should expect with the addition. In Harper’s standpoint, Mason was not able to give enough information to her to calculate all measurement above. In addition, Mason was not only reacted defensively but also did personal attack to Harper and her Staff. At the end, he indirectly pressed Harper by giving estimation cost that would be occurs if his request did not approved. Water Department Chief Engineer Mason felt disappointed with Budget Director Harper because in his point of view, Harper was intentionally tried to slow the bureaucratic process. He thought that Harper asked questions that had clearly explained by him or his staff. He also thought that Harper should know more about problems and procedures of operating a Purification Plant. Due to Harper’s incompetence, she wasted the time that had been spent by her staff and his. In addition, since additional personnel were really crucial at that time, he needed a clear and direct answer whether the budget was strained by the additional personnel. With that information, he was able to choose either to give up some other budget item or to give up the additional personnel.

b.If you were the budget director, how would you go about evaluating the Water Department's request for additional part-time and seasonal employees? Why would these steps be important in doing your job? If I were the Budget Director, I would evaluate the Water Department’s request for additional part-time and seasonal employee by determining these factors : 1.Whether they need additional personnel or not, what type of additional personnel (permanent or part time), how much they need it, and the most important thing is whether they are financially able to recruit additional personnel. I would calculate this information by using data about how much overtime cost that occurred during certain period. To do the calculation, I would need job description that currently applied and observed whether there was inefficiency due to job combining. Furthermore, I would calculate hiring cost and additional cost in hiring personnel. As Brown states : “ Hiring costs include all costs associated in advertising positions, screening applications to evaluate their qualifications, and processing successful applicants” (Brown, 1998, p. 9). Brown also describes that we have to consider other cost when hiring personnel such as : explicit cost of employing trainer (if they use trainer), the opportunity cost of trainee (in training process, trainees will be less productive), and the opportunity cost of using capital and experienced employee to do less informal training (Brown, 1998, p.10). In the end, after calculating all costs that might be occur, I would compare those with current budget condition and determine whether the organization were financially able to recruit additional personnel. 2.Short-term and long-term impact of staff increases.

This could be consisted of calculating the expected increase in organization’s performance. Moreover, to compare the cost that should be occurred with that performance increasing. All of the measurement was analyzed in short-term and long-term period. 3.How employee costs might impact the overall budget several years into the future. This means that I had to estimate whether the additional cost would stress the budget in acceptable limit or not for several...
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