MANAGERIAL

ECONOMICS
ASSIGNMENT
GROUP 9
Mamidi Hanvee Reddy (B24135)
Nidhi Prasad (B24140)
Priyanshu Gupta (B24145)
Sanya Goel (B24150)
Shubham Jain (B24155)
PART
A
 Why is this research question relevant to a manager and society?
MAIN RESEARCH
For Managers: For Society:

QUESTION? Impact on Productivity: Economic Development

Sleep is crucial for cognitive functions such as The productivity of the urban poor is crucial for
attention, memory, and decision-making, all of which economic growth. Sleep deprivation, driven by
are vital for maintaining high productivity. Managers overcrowding, noise, and poor living conditions, can
can enhance employee performance by incorporating impair work efficiency. Addressing these sleep issues
flexible work hours or structured nap breaks into work can improve productivity and contribute to poverty
schedules, helping to boost overall productivity. reduction.
What are the economic
impacts of improving sleep Employee Well-being: Public Health
among the urban poor in
Poor sleep quality can result in burnout, lower job Sleep deprivation is associated with health problems
developing countries, with a satisfaction, and increased absenteeism. Tackling like cardiovascular diseases and mental health
sleep-related issues can create a healthier workplace, disorders. Enhancing sleep quality can improve public
focus on Chennai, India? boost employee satisfaction, & improve retention. health outcomes, thereby easing the strain on
healthcare systems.

Cost - Effectiveness Social Equity

Investing in sleep-related interventions, such as The urban poor are disproportionately impacted by
enhancing work environments or offering sleep sleep deprivation due to factors such as noise,
hygiene resources, can increase productivity with overcrowding, and inadequate living conditions.
minimal cost, resulting in sustainable performance Improving sleep can promote social equity and reduce
gains. inequality.
OUTLINE ELEMENTS OF THE RESEARCH DESIGN (I.E., HOW THE
RESEARCH WAS CONDUCTED)
Location of research: Chennai, India
Participants: Low-income adults of Chennai
Number of participants: 452

Randomized Controlled Trial (RCT): The study was designed as a randomized Duration of the Study: The interventions were implemented over
controlled trial (RCT), a robust research method that assesses the effects of a 24-month period, with outcomes being consistently monitored
interventions by randomly assigning participants to various groups. to evaluate the impact of the sleep interventions.

Outcome Measurements:
The study evaluated several outcomes, including:
Productivity: Measured by tracking participants' performance during a one-month data entry job.
Cognitive Function: Assessed through tasks designed to test attention, memory, and decision-making skills.
Well-being: Both psychological and physical well-being were monitored throughout the duration of the study.

Participant Groups
Education & Motivation: Participants received guidance on sleep benefits & encouragement to improve habits.
Sleep Environment: Items like mattresses, eye masks, and earplugs were provided.
Monetary Rewards: Financial incentives encouraged longer sleep durations.
Nap Opportunity: A daily 30-minute work nap was offered
Sleep Measurement:
Cross-Randomization: Sleep was objectively measured using actigraphy, a
The nap treatment was randomly paired with other night sleep interventions, wearable device that tracks sleep patterns by
allowing the researchers to evaluate the impact of naps on their own as well as continuously monitoring body movements,
when combined with additional treatments. providing precise data on sleep duration and quality.
 SUMMARY
Increased Sleep Duration: The average increase of 27 minutes per night was attributed to participants spending more time in
bed, rather than improving their sleep quality.

No Significant Impact on Productivity: No notable improvement in productivity or cognitive function was observed among
participants who received the nighttime sleep interventions.

Positive Effects of Naps: Participants who had the opportunity to take afternoon naps demonstrated significant improvements
in productivity, psychological well-being, and cognitive performance

Sleep Efficiency: The study revealed that sleep efficiency, or the proportion of time spent asleep while in bed, remained low—
comparable to levels seen in individuals with sleep disorders such as sleep apnea. This low efficiency contributed to the limited
benefits of increased nighttime sleep duration.

Economic Trade-offs: Although naps improved work outcomes, they also underscored the need to consider the opportunity
cost of sleep, as time spent napping reduced work hours, which could potentially lower earnings depending on the context.

The study concluded that while increasing nighttime sleep did not lead to significant economic benefits, providing opportunities
for short naps during the day proved more effective in improving productivity and well-being among the urban poor. This
approach addresses the challenges of poor sleep quality at night and offers a more impactful strategy for enhancing cognitive
performance and psychological health.
 Implement Structured Nap Breaks:
01
QUESTION
The research shows that brief afternoon naps can lead to substantial
improvements in productivity, cognitive abilities, and overall well-being.
Managers could implement scheduled nap breaks during the workday to boost
performance and minimize fatigue-related errors.

Rethink Traditional Work Hours:

02
Since increasing night sleep didn’t yield notable productivity improvements, managers might explore
offering flexible work hours that allow employees to adjust sleep patterns. This strategy could help
How can a manager utilize employees get rest while maintaining high work quality.

the research findings to

03 Focus on Sleep Quality Over Quantity
inform organizational policy? The study indicates that merely increasing sleep duration may be insufficient if sleep quality is poor.
Managers can encourage initiatives that improve sleep hygiene by fostering quieter, more comfortable work
environments and providing resources and education on healthy sleep practices.

04 Consider the Economic Trade-offs

The findings emphasize the need to balance work and rest. While naps can enhance productivity, they
also reduce working hours, potentially affecting output in certain industries. Managers should carefully
consider these factors when implementing policies, ensuring that nap breaks are integrated in a way that
aligns with the organization's operational requirements.

05 Enhance Employee Well-being Programs

Integrating insights from this research into employee well-being programs can foster a more
comprehensive approach to workplace health. Managers could incorporate sleep health into wellness
initiatives by offering tools, workshops, or collaborations with sleep experts to help employees enhance
their overall health and productivity
PART
B
MAIN RESEARCH QUESTION? IN DETAIL

LOCATION OF THE
RESEARCH
Large healthcare organization
To evaluate the impact of a Sleep Health and
in the Northeast USA​
Wellness (SHAW) program, combined with a
personalized smartphone application (dayzz
app), on sleep, productivity, and healthcare PARTICIPANTS
utilization among employees at a large Daytime employees from the
healthcare organization
healthcare organization. Specifically, the
study seeks to determine whether this
intervention can improve sleep-related
behaviors, employee performance, and NO. OF PARTICIPANTS
reduce healthcare utilization 1,355 participants
Why is this research question relevant to a manager and society?
For Managers: For Society:

Employee Productivity and Performance: Public Health

Sleep directly affects cognitive function, mood, and overall Sleep health is a significant public health issue. Poor sleep is
productivity. By understanding the impact of sleep health associated with a wide range of chronic conditions, including
interventions, managers can implement programs that improve cardiovascular diseases, diabetes, and mental health disorders. The
employee performance, reduce errors, and enhance overall research has the potential to inform public health strategies aimed
at improving sleep and reducing the burden of these conditions.
workplace efficiency.

Healthcare Costs Economic Impact

Poor sleep is linked to various health issues, leading to increased On a broader scale, poor sleep can lead to decreased productivity,
healthcare utilization. Managers concerned with the financial both at the individual and societal levels. By exploring effective
aspects of running an organization can benefit from interventions, this research could contribute to strategies that
understanding how interventions like the SHAW program might enhance economic productivity and reduce the societal costs
reduce healthcare costs by preventing sleep-related health associated with sleep-related health issue
problems.

Employee Well-Being Quality of Life

Managers are increasingly focused on employee well-being as part Sleep quality is directly linked to overall quality of life. Addressing
of a holistic approach to human resource management. Supporting sleep health through workplace interventions can have a ripple
sleep health through programs like SHAW could lead to higher effect, improving not only individual lives but also community
employee satisfaction, lower turnover rates, and a more positive well-being by fostering healthier, more rested individuals who can
work environment. contribute more effectively to society.
 THE MAIN ELEMENTS OF THE RESEARCH DESIGN

Study Design:
The research is a cross-sectional study that utilized survey methods to gather data from participants. The study aimed to explore the
relationship between sleep duration, workplace sleepiness, and workplace productivity among healthcare employees.

Data Collection:
Data was collected using an online survey distributed to employees during their work hours. The survey included questions on
demographics, work schedules, sleep patterns, and workplace productivity

Participants:
The study involved 1,355 daytime employees from a large healthcare organization in the Northeast USA. Participation was voluntary, and
the survey was anonymous to encourage honest responses.

Variables Measured:
Key variables measured in the study included sleep duration, workplace sleepiness (using the
Epworth Sleepiness Scale) and workplace productivity (using the Work Productivity and Activity Impairment Questionnaire)

Data Analysis:
The collected data were analyzed using statistical methods to assess correlations between sleep duration, sleepiness, and productivity.
The analysis included descriptive statistics, correlation analysis, and regression models to identify significant predictors of workplace
productivity.
 SUMMARY
Sleep Duration and Workplace Sleepiness: The study found that shorter sleep duration was significantly associated with
higher levels of workplace sleepiness. Participants who reported sleeping less than 7 hours per night had higher scores on
the Epworth Sleepiness Scale, indicating greater daytime sleepiness.

Workplace Productivity: There was a notable relationship between sleep duration and workplace productivity. Employees
who slept less than 7 hours were more likely to report lower productivity levels. The analysis revealed that both increased
workplace sleepiness and decreased sleep duration were significant predictors of reduced workplace productivity.

Impact of Sleepiness on Productivity: Workplace sleepiness was found to mediate the relationship between sleep
duration and productivity. In other words, part of the reason shorter sleep duration led to lower productivity was because it
increased workplace sleepiness, which in turn affected performance

Overall Findings: The research highlighted the importance of sufficient sleep for maintaining productivity in the
workplace. The findings suggest that interventions aimed at improving sleep duration among employees could lead to
better workplace performance and reduced sleepiness.

These results underscore the critical role of sleep in workplace efficiency and the potential benefits of promoting healthy
sleep habits among employees.
 WAYS IN WHICH A MANAGER CAN UTILIZE THE RESEARCH FINDINGS

1. PROMOTE WORKPLACE WELLNESS PROGRAMS

Sleep Education: Implement programs that educate employees on the importance of adequate sleep and its impact on productivity and well-being. This
could include workshops or resources on sleep hygiene, stress management, and the effects of sleep deprivation.
Health Screenings: Offer regular health screenings that include assessments of sleep patterns and related health issues, helping employees identify and
address sleep problems early.

2. FLEXIBLE WORK SCHEDULES

Flexible Hours: Introduce or expand flexible work hours to allow employees to align their work schedules with their natural sleep patterns, which could
reduce sleepiness and improve productivity.
Remote Work Options: Offer remote work options where feasible, as this can reduce commute times and allow employees to get more sleep.

3. ENCOURAGE BREAKS AND NAPS

Rest Areas: Create designated rest areas where employees can take short naps during breaks, especially in high-stress environments. Research suggests
that short naps can help reduce sleepiness and improve performance.
Regular Breaks: Encourage regular breaks during the workday to prevent burnout and maintain alertness, which can mitigate the impact of insufficient
sleep.

4. SUPPORTIVE ORGANIZATIONAL CULTURE

Sleep-Friendly Culture: Foster a culture that recognizes the importance of sleep, where employees feel comfortable prioritizing their sleep health
without fear of being perceived as less committed.
Leadership Example: Encourage managers and leaders to model good sleep habits by avoiding late-night emails or work demands that could pressure
employees to sacrifice sleep.

5. POLICY DEVELOPMENT
Sleep and Productivity Policies: Develop organizational policies that explicitly address the importance of sleep, potentially incorporating sleep-related
metrics into wellness programs or performance evaluations.
Employee Assistance Programs (EAPs): Integrate sleep support services into EAPs, offering access to counseling or resources for employees struggling
with sleep issues.
 QUESTION 2: AUCTION-BASED DEMAND ESTIMATION FOR ARTWORKS:
CASE STUDY OF CHRISTIE’S AND SOTHEBY’S SPRING 2024 SALES

Auctions provide a valuable method for estimating demand curves by How does this help us in demand curve
revealing the maximum price buyers are willing to pay for items. This estimation?
process involves comparing auction estimates with actual sale prices to
gauge market demand for specific items. This slide presents data from • Auction Data as Demand Indicator: The prices achieved
Christie’s and Sotheby’s spring 2024 auctions to illustrate how auctions in auctions, compared to pre-sale estimates, reflect buyers’
help estimate demand curves.
willingness to pay and market demand.
Christie’s and Sotheby’s are two of the world’s leading auction • Market Trends and Demand Insights: Variations in sale
houses, specializing in the sale of art, antiques, and other high-value
items.
outcomes (e.g., high sell-through rates vs. unmet high
estimates) provide insights into shifting demand and price
elasticity for auctioned items.

The table shows key data from Sotheby’s and Christie’s auctions.
Sotheby’s had a total sales figure of $227.9 million, with its top lot, a
Francis Bacon painting, selling for $24.5 million, which was below the
estimated range. Christie’s total sales were $94.6 million, with Jean-
Michel Basquiat’s painting reaching $27.5 million, also below the high
end of the estimate
 How do auctions influence the demand curve? Auction Process &
Demand Estimation: The significant discrepancies between estimated and actual sales highlight the
variability in buyer demand for high-value artworks. Record-breaking sales for certain pieces indicate
Demand Estimation
strong demand, while others fell short of expectations.
Market Trends: The fluctuation in results underscores the dynamic nature of the art marke. Auction
Successful sales and high sell-through rates suggest robust demand, whereas underperforming lots Announcement
reveal softer demand in specific segments.”
Impact of External Factors: Events such as Christie’s cyberattack demonstrate that external
disruptions can affect auction outcomes but do not entirely obscure the underlying market
demand.”
Estimate Lot Values
Why is the demand curve downward sloping
during auctions?
The downward-sloping demand
curve demonstrates the inverse Bidding Process
relationship between price and
quantity demanded. In the context
of auctions, as the price of auction
items increases, fewer buyers are Sales Results
willing to pay, which leads to a
reduction in the quantity
demanded. Analyse Demand
(Compare Estimates vs Actual Sales,
Article Referred : https://www.ft.com/content/4abb2e60-70cb-469e-aaa6- Sell Through Rates)

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