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Module 1/Week 1 Discussion

Phawnta Avery posted Oct 15, 2019 12:27 PM

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For a Human Resource Professional, understanding marginal revenue and marginal cost can help determine what the needs are for the business. This will benefit all HR professionals when it comes to meeting the strategic business plan goals of the organization (Metcalf, N.D.). Does HR need to hire a specific amount of new employees in order to meet and increase sales and productivity? Is adding on another component or department of the organization going to exceed the business goals or is it going to be a financial burden or lost for the company?

I work for a non-profit organization at a science museum. There are different departments here such as the IMAX theater, Gift Shop, Food Court and different science galleries throughout the museum. As an HR professional, some of the marginal cost that my organization is trying to undergo is completing Phase III project which is adding on additional section for our air and space museum gallery and another component that is part of our Ecosystems gallery. Understanding marginal revenue and how this knowledge can help me contribute or even improve the Phase III project is the key. What new ideas can be brought on that will increase revenue to point it exceeds the marginal cost of completing the Phase III project. Can my organization bring on a new gallery or exhibit that will attract guests and increase revenue? What creative promotions and sells can the box office bring to our IMAX theater? What cool gadgets can our Gift Shop sell that will help with increasing sales and revenue?  Having greater knowledge of marginal revenue and making sure it is greater than marginal cost can help HR professionals and key stakeholders weigh the profitability of these decisions and consider in the end the opportunity cost that will be involved (Metcalf, N.D.).

Metcalf, Thomas. (n.d.). What Are the Benefits of Marginal Costs Equal to Marginal Revenue? Small Business - Chron.com. Retrieved from http://smallbusiness.chron.com/benefits-marginal-costs-equal-marginal-revenue-59579.html