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CASE: In preparing a bid for a construction contract, an estimator miscalculated the staffing requirements. Too many unskilled workers and too few skilled employees were hired. As the expansion of the football stadium fell behind schedule, supervisors tried to get work done more quickly. This speedup led to complaints from the union. Finally, the project manager realized the problem. The manager fired one-third of the unskilled workers and replaced them with skilled cement masons and carpenters. This decision led to legal problems involving unemployment compensation claims, and the higher-paid skilled workers caused the original payroll estimates to be wrong. The HR manager had to intervene. The stadium seats were in place by the firs home game but the contractor lost $ 385.000 on the job


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