Question

Suppose that the manager of a restaurant has two new employees, Rahul and Henriette, and is trying to decide which one to assign to which task. Rahul can chop 20 pounds of vegetables or wash 100 dishes per hour. Henriette can chop 30 pounds of vegetables or wash 120 dishes. [LO 2.3] a. Who should be assigned to chop vegetables? b. Who should be assigned to wash dishes?

Short answer

Assign Henriette to chop vegetables and Rahul to wash dishes.

Step-by-step solution

Define the Tasks and Rates

Identify the tasks and the performance rates of Rahul and Henriette. Rahul can either chop 20 pounds of vegetables or wash 100 dishes per hour. Henriette can either chop 30 pounds of vegetables or wash 120 dishes per hour.

Compare Vegetable Chopping Rates

Evaluate who is more efficient at chopping vegetables. Rahul chops 20 pounds per hour, while Henriette chops 30 pounds per hour. Henriette is more efficient at chopping vegetables.

Compare Dish Washing Rates

Determine who is more efficient at washing dishes. Rahul can wash 100 dishes per hour, while Henriette can wash 120 dishes per hour. Henriette is more efficient at washing dishes as well.

Assign Tasks Based on Efficiency

Since Henriette is more efficient at both tasks but significantly more so in chopping vegetables (50% more than Rahul), assign her to chopping vegetables. This leaves Rahul to wash dishes.

Key concepts

Opportunity Cost

The notion of opportunity cost is foundational in economics and plays a crucial role in deciding how to allocate resources efficiently. Opportunity cost represents the value of the next best alternative that must be forgone in order to pursue a certain action. In our restaurant scenario, this means considering what each worker, Rahul and Henriette, must give up to focus on one task over another.

If Rahul spends an hour chopping vegetables, he cannot spend that hour washing dishes. Therefore, the opportunity cost of Rahul chopping vegetables is the 100 dishes he does not wash. On the other hand, if Henriette chops 30 pounds of vegetables in an hour, she misses out on washing 120 dishes.

Understanding opportunity cost helps in identifying who should do what task by focusing on minimizing the cost of forgone options. Here, since Henriette can chop more vegetables than Rahul with relatively less loss in comparison to her dishwashing, the opportunity cost justifies assigning her to chopping vegetables.

Labor Efficiency

Labor efficiency measures how well an individual performs a given task within a certain period. It is calculated by comparing the rate of task completion for different workers. A crucial aspect of task allocation, labor efficiency tells us who can do a specific task more effectively and quickly.

In our example, Henriette displays a higher labor efficiency than Rahul in both tasks. She chops 30 pounds of vegetables per hour compared to Rahul's 20 pounds, indicating a 15 15% increase in efficiency. In dishwashing, she completes 120 dishes per hour, also showcasing her superior rate. Understanding these efficiency metrics allows the manager to allocate tasks in a way that maximizes output and minimizes wasted effort.

• Henriette chops vegetables 50% more efficiently than Rahul.
• Henriette washes dishes 20% more efficiently than Rahul.

Thus, recognizing Henriette’s labor efficiency leads to her being the more suitable option for the higher priority task - chopping vegetables.

Task Allocation

Task allocation involves assigning jobs based on the comparative advantage a worker has in performing certain tasks. The goal is to optimize productivity by considering labor efficiency and opportunity cost. When each task is assigned according to the strengths of each worker, overall time and resources can be conserved.

In this scenario, task allocation is conducted by analyzing each employee’s capability to complete the tasks of chopping vegetables and washing dishes. Henriette is adept at both tasks, but gains more value and efficiency by focusing on chopping vegetables, where her comparative advantage is larger. As a result:

• Henriette is assigned to chopping vegetables, leveraging her comparative efficiency.
• Rahul takes on the dishwashing, ensuring that both tasks are completed with optimal efficiency.

Effective task allocation leads to operational success, enabling both individuals to work according to their highest capacity while reducing overall opportunity cost.