Housekeeping staff are responsible for deep-cleaning guest suites and restocking high-end amenities. Grand Horizon Resorts is planning to decrease the size of its housekeeping teams rostered per block on its luxury properties. The resort chain currently schedules one more housekeeper per shift than its direct competitors. The marginal productivity of this additional team member is believed to be extremely low, often limited by the fixed availability of cleaning carts and service elevators. By reducing the number of housekeepers on shift, Grand Horizon Resorts aims to operate more cost-effectively and improve its operating profit margins.
Explain the likely impact of diminishing marginal productivity of labour on housekeeping staffing levels at Grand Horizon Resorts. Refer to Extract A in your answer.
