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Measuring Productivity

March 24, 2016 | Author: | Posted in management, mathematics and economics

Measuring Productivity

There is no one agreement on definition of productivity , yet we can say that it is the output-input ratio within a time period with due consideration for quality (Weihrich Koontz 1993 ,

.11 . Companies use several kinds of inputs like labor , materials , and capital . These inputs can vary the levels of productivity . However , there is another major element which has been ignored in this formula which deeply effects the productivity and that is the management . Peter F . Drucker (1973 , one of the most prolific in management states , The greatest [banner_entry_middle]

opportunity for increased productivity is surely to be found in knowledge work itself , and especially in management

In present environments , productivity of knowledge worker is more difficult to measure than that of the skills worker . One difficulty in measuring productivity of knowledge workers is that some of their outputs are only the activities that help achieve end results . It is however evident through research that productivity improvement can be achieved by good management practices . Productivity measurement is an important facet of human resource management which is done by evaluating the employees performance and then correcting and awarding them accordingly . This process of evaluation may take the form of a short informal discussion between employees and their supervisors , analysis of sales reports , or a more elaborate process spread over many specific steps . Irrespective of their formalities , performance evaluations besides measuring the productivity serve many other purposes like providing feedbacks , enabling effective controls , and employee development (Decenzo Robbins 2002 ,

. 272

Intel recently launched a multiyear initiative called e-Workforce for measuring general office productivity , which drives collaboration by embedding core business processes such as meetings , teams , and document management into new and existing technologies . The IT Business Value team has been made responsible to measure the business value of the e-Workforce program , focusing on employee productivity and travel reduction . To calculate the business value related to employee productivity , the data needed is the task frequency , task time savings adoption rate of the new application , and adoption rate of the new task method . At Intel , productivity improvement is viewed along a continuum as a single implementation in time or as multiple deployments as part of a phased solution . Therefore , it is not uncommon for a program to have multiple phases . This productivity measuring software can be used to measure different phases at multiple-timeframes (Intel , 2005

Employee productivity depends on giving employees opportunities for their personal growth , achievement , responsibility , recognition , and reward . It has been observed through productivity surveys and case studies that increased worker motivation and satisfaction can increase worker output thereby increasing the overall productivity


Decenzo , David , A Robbins , Stephen ,

(2002 . Human Resource Management . NJ : Prentice Hall

Drucker , Peter , F (1973 . Management : Tasks , Responsibilities Practices . New York : Harper Row ,

. 69

Intel (2005 . Measuring Employee Productivity Gains from e-Workforce Solutions ‘ Intel Corporation . 0805 /CAM /OCG /XX /PDF

Weihrich , Heinz Koontz , Harold (1993 ) Management : A Global Perspective . New York : McGraw-Hill



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