Question

***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 management is used in order to strengthen competitive positions in corporates. Productivity measurement can generate information that may be useful for management control purposes in two ways. First, such measurement may identify dimensions on which productivity improvements are possible, in which case targets may be generated to guide future operations. The productivity measures may then be employed to identify products or processes for which the firm has a competitive edge that are likely to increase the firm’s profitability. The second role for productivity measures in management control systems arises from their use in evaluating the performance of managers. In conjunction with the usual profit or cost accounting system, a productivity measurement system can be designed by the corporate management so that it motivates the divisional managers to select actions that are consistent with the overall corporate plans and priorities.