Question

it is better to select workers who already have develop the skills necessary to perform completely or to select workers who do not have the skills immediately but who can be trained to perform completely in other words what is more cost effective to buy or to make competent employees

Answer 1

According to the theory of division of labors, the specialization of the labors will lead to more output and reduce the cost of the production.

While employing the labors employers prefer the labors whose marginal productivity is more by employing the more productive labors will reduce the training cost and timing and other costs in the organization.

On the other hand employers, employees unskilled labors to do specific job firm has to bear training cost and some time it is a time-consuming process.

Thus it is a rational choice for the firm to hire skilled labors than the unskilled labors.