Means to Measure Productivity

For an important economic component, it is necessary to measure productivity. The data collected will in turn be used to calculate of the economic components to get an accurate reading. Peter Drucker is more likely to this point: A business will have no direction without productivity goals. A business will have no control without productivity measurement. Data Collection Data collection is a necessary requirement in the measurement. There are three basic methods to collect data on a system or phenomenon. They are observation, documentation and observation. Subsequently, the core elements are made - outputs are evaluated against inputs. Some authors have put in several qualitative indicators creating problems, but the remaning of them confine the productivity discussion to simple O / I factors(input & output factors) . The following are some of the techniques for measuring productivity. Mundel (1989) Famous Mundel created software package for PCs to evaluate productivity in which raw materials and direct adjustments of the quality are excluded. In this software, productivity can be calculated with simple algorithms of O / I. It features about 10 work unit levels, from lowest up to highest motion of the results achieved by the outputs. Sassone (1991) Sassone made this technique and this is easy to implement. The lowest level of employees classifies the work. Then the work is recorded by that type. The data is compiled as well as analyzed in a matrix format. The matrix can show the effort amount which is expended by each type of employee, and no matter they are working below or above their level and indicating a mixture of workers in a working group. Sink (1985) Sink had made some techniques to evaluate productivity with mainly his three methodologies. First of them is an digital mode of measurement which is based on O / I. The second use the processes of structured group to measure knowledge workers of white-collar workers. This uses the technique group to get up a consensus on how to measure productivity. The third is designed for evaluating various measures of productivity and deciding which of them are most important. In addition, it allows the combination of different measures of productivity. Other techniques Many other researchers used the technique group. Also Thor (1990) dealt with technique groups. These groups include a participative style. Each group has a facilitator which can be familiar with these techniques, but unknown to the groups relatively at the same time. One method that relied on the estimate had been used by Kristakis in 1984. The manager may list the types of work and break them into the detailed operations. Then the manager estimate the time each process of work would take. Direct observations, work samplings, time diaries, estimates are some tools which are used by Anthony in 1984. The data obtained will be computer-analyzed as well as reviewed. In total, these other techniques to measure productivity have its good points. However most are saddled with some inaccuracies and some are out of date. But we have known something: it is necessary to measure productivity.