Structural adjustment - factor affecting productivity, Operation Management

Assignment Help:

Structural Adjustments - Factors Affecting Productivity Improvement

Structural adjustment relates to the composition of society, the industries in which people work, fashions and trends all of which have an impact upon the organisation's productivity. Examples of such changes may be provided by the movement of labour in Europe and North America, initially from agriculture to industry in the early to mid-nineteenth century and latterly away from industry to the services sector. In both of these shifts, automation has played a key role: technology (eg combine harvesters and traction engines) removed the need for large scale labour in the fields, whilst the introduction of automated or computerised production systems such as computer assisted design (CAD) has increased output per person greatly in the manufacturing sector. To remain productive in high-technology industry requires constant re-investment in machinery, training and staff. People need tools to extend their productivity, technology and capital provides those tools.

Another structural consideration may be (false) economies of scale. Although the 'advantages' of such economies are well known, the concept has had only a limited degree of success in practice, as may be seen from examples such as the Soviet five year agricultural plans, and the current trend within the manufacturing sector to small batch manufacture. The third mechanism which affects structural adjustment is the demographic or social trends facing the organisation. Demographic trends can be seen from the variances in labour cost worldwide. These variances force industry in high labour cost countries to find other means of matching the low unit costs of manufacture in countries such as Taiwan and South Korea.

Conventionally, this has been achieved through the replacement of labour by capital investment such as automation, but at the possible social expense of unemployment. This can however lead to the formation of a 'vicious circle' as unemployment often leads to a reduction in labour costs thereby encouraging the employer to reduce long-term investment in automation and re-invest in labour due to its improved cost- competitiveness. Whether this labour cost trend could be maintained in the long term is the real question which the employer should be asking. Social trends which have been exhibited in the West over the last decade include the increasing number of women in full-time employment and the rising number of people on courses past the school leaving age.


Related Discussions:- Structural adjustment - factor affecting productivity

Explain what factors have limited the ability of local law, 1. What factors...

1. What factors have limited the ability of local law enforcement agencies to respond to the growing threat of computer crime? Answer A. lack of training B. lack of diagnostic equi

Forecasting, The cafeteria supervisor at CarWash is interested in developin...

The cafeteria supervisor at CarWash is interested in developing a forecast model for the number of meals to be prepared each day. The following daily data from the cafeteria’s regi

Define conditions which exist globally that are contributing, Please answer...

Please answer both questions fully to have points awarded, Thanks! Decreasing the Incidence of CVD" Please respond to the following: 1. Propose the steps that might be taken

Explain the business-level strategy, Research the corporate-level of strate...

Research the corporate-level of strategies and evaluate the business-level strategy do you believe is appropriate to offset forces in the industry for Victory Motorcycles. Can you

Explain why are isoquants negatively-sloped, >>Why are isoquants negatively...

>>Why are isoquants negatively-sloped? Along a single isoquant, the firm can substitute the use of one input for another while holding the total level of output constant Beca

Explain how does the grapevine develop, Should a manager be concerned with ...

Should a manager be concerned with the grapevine within his or her organization? Why or why not? How does the grapevine develop? Is the grapevine a valid communication process? Sho

I want to have someone to do a case study, I need to have someone to do a c...

I need to have someone to do a case study for me using a case study template. Has to be all original.

Merits of continuous or flow production, Merits of Continuous or Flow Produ...

Merits of Continuous or Flow Production 1.The direct labor content will be reduced since the comprehensive pre planning which is necessary will often produce economies in time.

Major challenges in relation to organizational behavior, Question 1: (a...

Question 1: (a) What does Organisational Behaviour mean to you? Use your own words to explain the concept. (b) Describe carefully the major challenges organizations are fa

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd