MGMT311 Risk Analysis "I've attached the Cost benefit paper this assignment is to now provide the Risk Analysis"

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Running head: COST-BENEFIT ANALYSIS

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COST-BENEFIT ANALYSIS

Cost-Benefit Analysis

MGMT311

March 29, 2020

COST-BENEFIT ANALYSIS

The program that has been proposed by me is the introduction of same company T-shirts for the employees that they will be expected to wear on the last day of the week which is Friday. This paper covers the cost-benefit analysis of the program.

Benefit

The benefits of introducing t-shirts for employees are as follow:

1. Creates a reputable business image: Society prefers to evaluate others by how they appear, for good or for worse. Selecting an appropriate t-shirt for the employee will effectively build a respectable company identity that draws and helps to maintain the clients.

2. Promote brand: The workers wearing shirts featuring company identities and colors, allow them to identify and distinguish their business in the industries they represent. Often, well-designed shirts of employees carried in the public are "walking advertisements," advertising the organization technically for free. Staff wearing apparel that is consistent with their corporate brand name and logo would make it much simpler for consumers to pose questions that contribute to higher overall workplace efficiency.

3. Improves employee morale: Work shirts foster teamwork and feeling of belonging. It can, in effect, increase efficiency for the worker by creating a team spirit. Furthermore, getting business shirts helps ensure the workplace is fairer because no one would be left behind if they are unwilling to wear the newest trends in clothes. Encouraging a healthy work climate starts by ensuring everybody is on the same page. When employees feel that they are both collaborating for a shared purpose, they would be inspired to perform the activities of better quality.

4. Promotes company loyalty: A factor that will be most importantly considered in this program is that the introduced t-shirts are comfortable to wear and the employees will take pride in wearing them. Wearing t-shirts that represent the company’s image to which the employees belong would create a sense of pride and loyalty in the minds of employees thus boosting morale and productivity in return.

5. Makes employees more confident: The added boost of confidence would improve the engagement of the staff with their future clients, so they will speak in a more persuasive language. One of the biggest factors for encouraging the workers to dress professionally for the work is that their appearance has a huge effect on the clients who interact with them. A well-dressed staff looks polished and it will give a message to the future clients that the workers are qualified and experienced.

Cost

The costs of introducing t-shirts program for employees are as follow:

1. Sunk Costs: The sunk costs are the costs that have already been incurred in the introduction of this program. This includes the cost of production of t-shirts. The cost of production for all the employees of the workplace with a total of 800 employees summed up to $300 per employee t-shirt for the whole year (Colin, 2019). As the shirt would have printed the name of the company and its logo as well as the customized name of each employee, the cost is greater than usual t-shirts.

2. To continue boosting employee morale, new t-shirts must be provided to each employee bi-monthly. This will ensure that the employees continue to wear t-shirts that do not appear worn out. This means that there should be a continuous supply of the t-shirts even for emergency cases such as incidents faced by the employee which destroyed the t-shirt, for instance, a spillover of oil.

3. The contract signed for renting out t-shirts for the employees might result in overstocking of t-shirts as there would not be as much need as anticipated while giving the orders or signing the contract.

4. Opportunity costs: The opportunity cost is the cost of the next best alternative that is forgone when we selected to introduce t-shirts for employees. For this program, the opportunity cost is introducing fringe benefits to the employees such as employee discounts or meals discounts. Fringe benefits are types of rewards that offer to workers above a specified pay or salary (Kokemuller, 2019). These fringe benefits were expected to pose similar benefits and costs to the company, however, I believe that the benefits of the introduction of t-shirts outweigh the impact these fringe benefits create on the employee morale and productivity. Thus considering the long-term impact of t-shirts for employees, it seemed to be a better alternative.

References Colin, H. (2019). What is the Average Cost of Work Uniforms? Retrieved from modelapparel.com: https://modelapparel.com/employee-uniform-program/ Kokemuller, N. (2019, January). What Are Fringe Benefits for an Employee? Retrieved from https://smallbusiness.chron.com/: https://smallbusiness.chron.com/fringe-benefits-employee-41950.html