Organization’s objectives Resources Actual Vs planned utilization of resources – a review
To raise sales by 10% percent and profit by 15% percent in two years’ time. Time
Employees’ salaries
Incentives
Suitable work environment
Hiring expertise in design and production for the technical requirements
- In my organization under and over utilization have below reasons and consequences:
a. Under-utilization: This doesn’t happen very frequently. But when it happens, it’s due to workers going on leave in batches and unavailability of outsourced manpower with the required skill to plug.
b. Over-utilization: This happens quite frequently. The main reason usually is additional work scope in shape of variation or demand surge which wasn’t anticipated. This results in overtime. This overtime has cost implications.
In my organization hiring or outsourcing of design and technical area shows mixed trend. Depending upon the specialty of job at hand, special expertise are sourced from outside of market. These requirements vary from job to job.
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