What Causes the Shifts?

1. Fluctuations in factor prices

2. Changes in workforce demographics
3. Shifts in the use of Capital
4. Changes in technology
These pillars are also responsible for positively as well as
negatively affecting the Productivity of the Organization.

1. CAPITAL
An existing machine or facility if it is not functioning
up to full capacity or turning out products which are not
acceptable can lower productivity. A new machine or
repair of existing machine would require capital input.

2. QUALITY
Poor quality products would not meet customer
requirements and would need repairs and reworks on the
product to meet the standards.
3. MANAGEMENT
With better scheduling, planning, coordinating and
controlling activities of management the machine
operations can be carried to improve productivity.

4. TECHNOLOGY
Technological improvements have increased
productivity. A machine of today would outperform
machine of yesterday but may not withstand machines of
tomorrow.
CAUTION: Without careful planning technology can reduce
productivity as it often leads to increased costs, inflexibility
or mismatched operations. All leads to reduction in value.
Other Factors Affecting Productivity
Standardization
We live in a world where for the sake of convenience,
reliability and safety, majority of the products and services
have been standardized.

Benefits:
-Improves Clarity
-Guarantees Quality
-Promotes Productivity
-Boost Employee Morale
Use of Internet
Use of Internet/Extranet especially for the services side, even
though there are knowledge base applications available for the
manufacturing side as well but primarily it has the been the services
side which has been able to exploit the resourcefulness of the
Internet.

Computer viruses
A lot of time IT based services industry have fallen a prey to
computer viruses and hackers.

Searching for lost or misplaced items.

This speaks low about the coordinating activities and can lead
to loss in production time and increase in idle time. Often this also
leads to increase in replacement costs.
Scrap rates
Any aberration in the raw materials or processed product can lead
to increase in scrap. The increase in scrap rate in fact can decrease the
utilization of resources in general and raw material.

New workers
Organizations spend millions of Peso every year to train their
employees. A trained workforce is reliable and dependable that ensures
good quality output.

Layoffs
Temporary suspension or permanent termination of employment
of an employee for business reasons such as personnel management of
downsizing an organization.
Cuts in Health Benefits
Decreasing or loss of benefits takes away the motivation to work hard.

Shortage of IT Trained Workers

Safety