Productivity Measurement and Improvement in the Private Sector
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The paper explains why the measuring of productivity of a firm is of paramount importance to any business organization and then looks at productivity improvement strategies. The paper addresses the need to reward innovation, provide incentives, increase involvement of employees in decision-making as well as encourage employee training. The paper shows how there is a need for management teams in private organization to work cooperatively and collaboratively with staff members in the formulation of productivity improvement strategies to foster organizational growth and improved performance.
From the Paper:"Productivity is not constant and varies with markets and from industry to industry. Different industries may share productivity indicators, but no two industries have the same indicators. Scrutinizing different markets and industries would therefore assist the efforts to measure the productivity of a business organisation. For instance, a business in the manufacturing industry has its productivity indicators based on its output. For such an organization, its total annual output may be regarded as its productivity indicator (Diewert 2005).
"In the service industry, which includes bars, hotels, restaurants, and other establishments that are service-oriented, customer turnover could constitute one of the productivity indicators. The quantitative nature of this productivity indicator in the service sector makes easy to accurately measure. On the other hand, assessment of the entire company sales or those of a single employee may act as productivity indicators for firms majoring in sales. Nevertheless, establishment of the sales output is not based on single item sales but rather on monetary value of the total sales making it easier to determine the performance and productivity of a company in sales. For instance, productivity of a departmental store specializing in the sale of barbeque grills is not determined by the number of the grills sold but rather on the amount of the monetary proceeds from the sale."
Sample of Sources Used:
- Bandiera, O. (2004). Relative and Absolute Incentives: Evidence on Worker Productivity. Retrieved 03 30, 2011, from http://ideas.repec.org/p/ecm/nasm04/277.html
- Callanan, G. A., Rotenberry, P. F., Perri, D. F., & Oehlers, P. (2010). Contextual Factors as Moderators of the Effect of Employee Ethical Ideology on Ethical Decision-making. International Journal of Management, 27(1), 52
- Diewert, W. (2005). Concepts and Measures of Productivity. Retrieved 03 30, 2011, from www.econ.ubc.ca/diewert/02chap.pdf
- Duffy, J. F. (2007). Inventing Invention: a Case Study of Legal Innovation. Texas Law Review, 86(1), 1
- Holcomb, M. C. (1994). Customer Service Measurement: a Methodology for Increasing Customer Value through Utilization of the Taguchi Strategy. Journal of Business Logistics, 15(1), 29
Cite this Term Paper:
Productivity Measurement and Improvement in the Private Sector (2013, July 03) Retrieved May 25, 2022, from https://www.academon.com/term-paper/productivity-measurement-and-improvement-in-the-private-sector-153587/
"Productivity Measurement and Improvement in the Private Sector" 03 July 2013. Web. 25 May. 2022. <https://www.academon.com/term-paper/productivity-measurement-and-improvement-in-the-private-sector-153587/>