This article describes how you can take advantage of alternatives available when you start something new and how substitutes are used when you cannot get what you really would like to have. It also tells you how to take management decision considering a hypothetical decision of taking air coolers on hire.
Air Conditioners Are Required During Hot Climate
Air conditioners are required at each office in USA not just to keep a good relation with employees but also to increase productivity. Out side US when you start the project, you do not have electricity and the portable generators provided at start would not be able to provide electricity required for air conditioners, as they require large power to operate it. Certain places outside USA the air conditioners may not be available from market on demand.
Air Coolers Or Heaters Are Good Substitute
The air coolers are good substitute for air conditioners during hot climate and air coolers would reduce the temperature by up to 30Deg F on a favorable day. The Air heaters may used when the work is on in the cold countries. You would rather require air conditioner than air heaters in most countries of world.
When Air Coolers Are Not Available Easily
The situation we are discussing may not be directly connected to us in USA, but you might be in situation of a manager who has to take decision and answer tough questions. Some of them may be as follows. When even the air coolers are not available, and the requirements are urgent, what is the solution? The solution is of course to hire them. But hire at what cost? Consider the alternatives
- Will it be safe to work without it?
- Will it affect productivity? If yes, in what way and to what extent
- How will it affect production?
- What are costs of reduction of production
- Will just the fans do if the aim is to reduce temperature?
Consider The Cost Of Hot Hiring The Air Coolers
In management parlance, this is called opportunity cost. What are the costs of not providing air coolers?Will the worker's productivity reduce? If so, by how much? If the immediate costs of hiring of air coolers are equal to or more than the cost of loss of productivity, then it is worth hiring the air coolers. The side benefit of providing the air coolers may be an increase cost of productivity of air coolers.
The marginal higher cost of providing may even be offset by increased production levels.It is a management decision really. It is not a decision of cost of hiring the air coolers. It is about alternative, and about how to take management decisions.
