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Effect of Overstaffing in Benjce Sachets Water Company Onitsha (BSWCO)
Subject area: Science,Engineering and Technology · Area of research: Industrial & Production Engineering
Abstract
When a company employs more people on the job than needed, it is said to be overstaffed. It could have accrued from when the company experienced its major market boom, followed by a decline. When you pay your employees for doing nothing, it drains your profit and could lead to severe financial crisis. Overstaffing happens when there is lack of sufficient strategic long term goals. The methodology used in this paper is both qualitative and quantitative. On the 1st December, 2020, Benjce Sachets Water Company Onitsha (BSWCO), automated her company instilling twenty sachets water machines with three hundred unskilled regular staff manning them, most of the time the machine does most of the work; while the staff stay idle. By the end of December 2021, profit data from the company, showed how negative energy of overstaffing sprung up with increased overhead costs, with heavy strain on BSWCO finances with no profit rather accumulated losses. The outcome of the research in BSWCO shows that overstaffing leads to decreased productivity as there were often too many people working on the same project, leading to inefficient use of resources and lost of profit. Bankruptcy occurs when a company continues to retain idle staff; it is recommended that more branches should be established to accommodate those idle staff otherwise the company will fold up in no distance time due to lack of profit.
Keywords
Overstaffing, Productivity Improvement, Finances, Idle Staff, Profit, Loss.
How to cite this paper
@article{1705067,
author = {Ifeyinwa Faith Ogbodo, Ogbodo Emmanuel Utochukwu, Chuwunedum Ogochukwu Chinedum, Onyenanu Chukwunonso Nnanyelum},
title = {Effect of Overstaffing in Benjce Sachets Water Company Onitsha (BSWCO)},
journal = {Iconic Research And Engineering Journals},
year = {2023},
volume = {7},
number = {3},
pages = {318-320},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1705067.pdf},
abstract = {When a company employs more people on the job than needed, it is said to be overstaffed. It could have accrued from when the company experienced its major market boom, followed by a decline. When you pay your employees for doing nothing, it drains your profit and could lead to severe financial crisis. Overstaffing happens when there is lack of sufficient strategic long term goals. The methodology used in this paper is both qualitative and quantitative. On the 1st December, 2020, Benjce Sachets Water Company Onitsha (BSWCO), automated her company instilling twenty sachets water machines with three hundred unskilled regular staff manning them, most of the time the machine does most of the work; while the staff stay idle. By the end of December 2021, profit data from the company, showed how negative energy of overstaffing sprung up with increased overhead costs, with heavy strain on BSWCO finances with no profit rather accumulated losses. The outcome of the research in BSWCO shows that overstaffing leads to decreased productivity as there were often too many people working on the same project, leading to inefficient use of resources and lost of profit. Bankruptcy occurs when a company continues to retain idle staff; it is recommended that more branches should be established to accommodate those idle staff otherwise the company will fold up in no distance time due to lack of profit.},
keywords = {Overstaffing, Productivity Improvement, Finances, Idle Staff, Profit, Loss.},
month = {September},
}