Structural adjustment - factor affecting productivity, Operation Management

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.

Posted Date: 3/15/2013 3:43:42 AM | Location : United States







Related Discussions:- Structural adjustment - factor affecting productivity, Assignment Help, Ask Question on Structural adjustment - factor affecting productivity, Get Answer, Expert's Help, Structural adjustment - factor affecting productivity Discussions

Write discussion on Structural adjustment - factor affecting productivity
Your posts are moderated
Related Questions
If someone owns real estate in fee simple absolute, what does that mean?

A manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. At the end of December, the company wishes to forecast sal

Carrington inc is an international company engaged in the production and distribution of pharmaceutical. Is the Peterson operation successful? To the degree that it can be judged a

A firm that has recently experienced an enormous growth rate is seeking to lease a small plant in Memphis, TN; Biloxi, MS; or Birmingham, AL. Prepare an economic analysis of the th

Role of Production Planning and Control in Operation Management Operations are at the centre of the diagram in figure given below because they are the dynamic doing elements o

You have just been notified by the Student Aid and Scholarships Office that you would receive a regents scholarship of $2000 for the coming academic year. Furthermore, your applica

People discriminate when prejudice impacts their Answer beliefs. attitudes. intentions. behavior.

Define logos, ethos, and pathos and explain which of these is most important to effective leadership communication

The Northern Emergency Computer Support has a call center with 10 customer service representatives. Historical statistics show that the durations of customer calls are exponentiall

If you were Monsanto's CEO, how would you best balance the conflicting needs of the variety of stakeholder groups that Monsanto must successfully engage?