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As a manager, what are some practical things you could do to raise marginal product per employee that also benefit the firm? In your answer use a company you currently work for or one you worked for in the past. Give specific examples and discuss how diminishing marginal productivity affect marginal revenues and profits of firms.
The first thing you need to realize as a manager is that it is important that you have happy, dedicated employees to help keep your marginal product per employee under control. Somethings that could help would be to boost employee morale. My current employer does this by having cook outs in the summer frequently, just to remind the employees that they are appreciated. We also have a local ice shop that bring us one large ice cream dish per person (about 200 employees), twice in the summer. These are little things, that you can tell make the employees work a little more efficient. Something else that might be considered would be some sort of bonus offered to employees who produce over X amount of envelopes in one month. This would help keep them at the highest producing rate they could. Another place I worked, Starbucks, offered tuition reimbursement, a free pound of coffee a week and competitive pay plus tips. The manager was also very flexible with every employees schedule.
Unfortunately, whenever marginal productivity becomes an issue, firms start to see changes in their revenues and profits. If employees aren't meeting the productivity that the company needs them too this leads to less product to be sold, also it means that things aren't working as efficiently as it could be. You want to be ahead of the curve, and make changes before these things start effecting the bottom line.
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