Final answer:
Projects at the second level of maturity are characterized by diminishing returns, with output still increasing but at a decreasing rate due to less efficient addition of resources such as labor.
Step-by-step explanation:
When projects reach the second level of maturity, they experience what is known as diminishing returns. This typically occurs after a company has moved past the initial phase of rapid growth, where adding more workers significantly increases output. In the second stage, although output continues to rise, it does so at smaller increments. Additional employees may be necessary for roles that don't directly contribute to production, such as stocking shelves or answering phones. As a consequence, production efficiency is reduced because the additional output per new worker is less than that of previous workers.
An example in the field of engineering illustrates task management under these conditions. Engineers often work on multiple projects, each with its own deadlines. Deadlines are crucial, and missing one could result in project cancellation or significant revenue loss. For instance, in the design of a new video game controller, failing to meet project milestones might prevent a company from capitalizing on the holiday season, which is prime time for product sales, or getting a product to market before competitors.