Introduction
Producing a larger volume of output from a small volume of inputs requires efficient and effective coordination, planning, organization, budgeting, leading and controlling things, activities and conditions with and through a team.
The managers are facing many challenges facing their efforts to increase productivity of industries in US. The industries may lack sound management strategies which may efficiently encourage the use of research and development initiatives and adopt customer satisfaction techniques. The middle level managers may be incapable of planning and coordinating quality output, with mangers failing to embrace change and committed to quality assurance. Dual sub-ordination instead of encouraging one boss policy may undermine authority as loyalty is divided; create confusion as employees escape their responsibilities resulting into indiscipline, chaos and duplication of work. The management’s lack of respect and confidence over the employees by micromanaging them will make the workers not to maximize their productivity as they will not have powers to make some decisions on their own with no incentives or rewards given to boost their productivity.
Scarcity of labor may lead to higher compensation rates hence increasing input making the marginal revenue product go be yond marginal costs .This determines the demand and supply of labor services ultimately affecting perceptions and expectations of both workers and employers. The industries may lack the required human capital that can nurture innovative and productive professional based economy (The National Research Council 3).Causing Knowledge gap created due to non quality training, with low level youthful investment on skills and talents. Industries may fail to outline strategic plans to improve employees’ career to make them grow. Since productivity increases with skills, investing on training of workers inspires them to work hard. The aged workers may have accumulated stock of knowledge but their mental and physical production capacity decline with their age. Counter productive collective bargaining policies like monopoly union models and right to manage may lower productivity since union workers are paid more to do the same kind of work than non-unionized workers. The industrial revolutions, strikes and periodical re-negotiations of compensation rates discourage profitability of industries. In addition destructed, unhappy, and troubled workers will be less productive as they will be spending time looking for answers to their problems such as financial stress, family issues, illness and stability of tenure rather concentrate on finishing quality work.
Government policies and regulations may not influence effective competition as the regulations may be unnecessarily overlapping hindering development of new products and technology. The regulation may be barriers to new entrance in the market. The implementation of safety policies may increase cost of production but not necessarily transferring the expense to the customers. The globalized competition increases pressure to increase quality, redesign and restructure production process, brand transformation and create market leading perception for efficiency and good value reward which may require costly inputs limiting profit margin. The technological advancement optimizes the physical quantity of amount to be produced in relation to needed quality of input .the plants may not be utilized to optimum production capacity more so when customers demand lesser volume of what can be potentially produced. There is need for information technology initiatives that supports flexible working schedule enabling employees to balance their personal engagements and work .This will revolutionize communication with other employees opting to work at home at the same time upholding industrial efficiencies. Other challenges may be lack of accurate information concerning the industry, its products and services being offered, lack of raw materials halting production spirit, meeting customers’ needs, lack of further investment and utilization strategies to increase capital accumulation.
For management to make employees put out products and services more rapidly, managers should act with authority while accountably responsible for division of labor and specialization of employees for accuracy and speedy performance to enhance efficient economy.
Work Cited
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Danker, Toney. Dohormann, Thomas. Killefer, Nancy. And Mendonca, Lenny. “How can American Government meet it Productivity Challenges?” Mckinsey & Company, July 2006, Web 7th Dec 2012< http://www.mckinsey.com/client_service/public_sector/people/~/media/089DF43BA5A84EC6A573E649284C2E63.ashx >
Lawson, Raef “Rising to the Challenge: Productivity in Accounting and Finance Organizations”, Institute of Management Accountants, 2012, Web 7th Dec 2012 < >
Russell, Matthew, Takac, Paul and Usher Lisa “Industry productivity trends under the North American Industry Classification system” ,Monthly Labor Review, November 2004,Web 7th < >
The National Research Council “Advancing the Competitiveness and Efficiency of the U.S. Construction Industry” the national academies press, 2009, web 7th Dec 2012 < >
