Why might a firm prefer that employees telecommute Can you t

Why might a firm prefer that employees telecommute? Can you think of a way this might reduce production cost, and so shift the supply curve to the right?

Solution

The cost of labor is a vital component of production cost. It can be reduced by making effective use of working hours. In course of work lots of time are wasted in the process of commuicating with other workers or higher authorities. By reducing this wastage, productivity can be improved.

In this problem, telecommuication is the medium. Sometimes the line may remain busy or techical problem may prevent effective commuication. As a result, time is wasted ad sometimes miscommuication may occur.

In order to prevent it some steps can be adopted. They are as follows-

1. First identify the common problems which requires frequent commuication. Then discuss with the concerned persons to find the way of solving them. Commuicate it to every body. Prepare a standrard guideline in writing. Issue it to all related workers. You can display them in the workplace. It will help the person to solve it on his own without wasting productive time.

2. Give appropriate training so that the employee can get adequate knowledge and skills to solve them on his own.

3. You can use modern devices like webcam in the production location and other required areas. It will give a pictorial view of the emplyees working. Communication becomes much easy and effective when two persons can see and talk as if they are working in the same place. Also instructions can be effectively commuicated as both of the commuicator can see and talk. Thus time is reduced and commuication becomes more effective.

These are the few steps which will reduce wastage of time. So productivity will improve and cost of production will fall. Increase in production will shift supply curve to the right.