Question

Define and explain productivity measurement and control in detail. Find an example or
an article from an academic journal related to productivity measurement and control use
or implementation. Explain the basics of productivity measurement and control and how
it is used for decision making.

Answer 1

Productivity is the ratio of the output to the input which means it is obtained by dividing the performance output by the resources deployed in getting that output. The definition looks simpler but there are multiple challenges and difficulties when we actually set out to measure productivity in various aspects of life.

In a manufacturing setup, when there are multiple workers enagaged in the production of a unit, it is difficult to ascertain which workers are facilitating and which ones are hindering. Due to multiple parallel processes with different speeds, there are practical situations wherein a worker is simply waiting for other worker to finish his part of the job. The worker is not wasting his time but is waiting to start his work. In such situations, wherein group is involved, it is better to measure group productivity, rather than individual productivity.

In case of service industry, there is no tangible product output so measuring the output itself is a big challenge. As it is difficult to quantify, certain measures like number of customers served, etc is used.

For managers, who have to deal on multiple fronts, deal with ideas and innovation, it becomes difficult to arrive at the ratio. In such cases, performance appraisals are used.

While it is difficult to measure actual productivity, the trend line can still be studied and the inefficiencies corrected.