Staffing and Organisation Performance – Supports for a Slight Overstaffing Level

19 Pages Posted: 15 Nov 2012

See all articles by Trong Binh Tran

Trong Binh Tran

School of Civil and Environmental Engineering, The University of New South Wales, Sydney, Australia

Steven Davis

University of New South Wales (UNSW) - School of Civil and Environmental Engineering

Date Written: October 30, 2012

Abstract

The present paper presents a theoretical approach to measure the relationship between staffing levels and organisation performance. Results from the approach are used to find the optimum staffing level that maximises the profit of the firm. This study assumes that incoming work to a firm follows a random walk model, while the staffing level is managed by the firm in order to maximise the profit. The model includes effects of variability of external demand to the firm’s profit such as overtime work, late penalties, hiring and firing costs, and so on. The model was implemented using MATLAB and used to compute the profit for different staffing levels. Results from the present study indicate that a firm should be slightly overstaffed to maximise its profit. However, this may be related to the particular parameters used in the investigation.

Keywords: Overstaffing, Organisation performance, Random walk model

Suggested Citation

Tran, Trong Binh and Davis, Steven, Staffing and Organisation Performance – Supports for a Slight Overstaffing Level (October 30, 2012). Proceedings of 19th International Business Research Conference 2012. Available at SSRN: https://ssrn.com/abstract=2174205 or http://dx.doi.org/10.2139/ssrn.2174205

Trong Binh Tran (Contact Author)

School of Civil and Environmental Engineering, The University of New South Wales, Sydney, Australia ( email )

Room 403 - Level 4
Sydney, New South Wales 2052
Australia
+61293854290 (Phone)
+61293856139 (Fax)

Steven Davis

University of New South Wales (UNSW) - School of Civil and Environmental Engineering ( email )

Room 403 - Level 4
Sydney, New South Wales 2052
Australia

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
439
Abstract Views
2,004
rank
67,691
PlumX Metrics