Overview

overmanning


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The excessive use of labour in any business. It may be imposed by law, or may result from collective bargaining or from managerial choice. Management may choose overmanning through incompetence, or in the belief that demand is likely to expand in the future, and that it is cheaper to hoard labour for the time being than to lay off redundant workers now and have to recruit and train replacements in the future.

Subjects: Economics.


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