Essay on Shirking

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Our new strategies – round 3
From the first round onwards we have been following a quite conservative approach in applying strategies to different branches. Having changed the number of monitoring personnel and bonuses by two units in the first round resulted in the second highest profit among the teams in our ‘shirking’ subgroup. What is more, 23 firms out of 50 managed to either increase their profits or decrease losses. However, this approach lacked differentiation and spirit of experimentation with the given data set to try out how the things would go if we for instance applied drastic changes of 20 units or more. We decided to follow this risk-averse strategy as we thought of it as a simulation of a real-life case which was not quite
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This time the profit increased by the impressive number of 840%. This strategy highlights the fact they we most often for companies with negative profits tried to decrease costs heavily instead of looking rather at the overall productivity. Here, we assumed that the monitoring costs are quite high with a value in the high 80s and therefore we figured one needs to decrease this value which will then end up in a positive outcome.
In the final round the shirking percentages for the branches were quite crucial information since it allowed us this time to compare the results of prior rounds and our changes not only to the profits but also to the decreases and increases in shirking levels. The shirking levels were significantly different than in the previous rounds. Based on this information we adjusted the strategies for the companies. As before for some cases we followed the strategy already used in the second round, namely one-variable change because this enabled us to see a relationship between one variable and the dependent variable, namely profit. However, for the firms with the highest losses or the ones who could not increase their profits so far we decided to apply drastic changes. The new shirking percentages were in some cases substantially lower than the previous levels. For example, branch number 8 had a shirking percentage of 0,19 in the first and in the second round, so we left the

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