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Productivity as a Performance Measure

Susan D.A. Misterek (University of Minnesota, USA)
Kevin J. Dooley (University of Minnesota, USA)
John C. Anderson (University of Minnesota, USA)

International Journal of Operations & Production Management

ISSN: 0144-3577

Article publication date: 1 January 1992

Abstract

Both the improvement of productivity and the effectiveness of performance measures have been topics of extreme interest to managers and researchers in recent years. Looks at the potential advantages and disadvantages of using the traditional productivity measure, output/input, as a measure of performance at the firm, work‐unit, individual, product, or product‐line level. Considers the ability of productivity measures to adjust for price changes and to detect factor substitutions. The distortion of productivity measures by fixed expenses and the inability of productivity measures to consider quality changes are among the disadvantage cited. Also, criticisms that have been levelled at traditional cost accounting measures are found to apply to productivity measures. Proposes three criteria that can aid in determining when productivity measures are appropriate as performance measures. Makes recommendations for ways of using productivity measures effectively also.

Keywords

Citation

Misterek, S.D.A., Dooley, K.J. and Anderson, J.C. (1992), "Productivity as a Performance Measure", International Journal of Operations & Production Management, Vol. 12 No. 1, pp. 29-45. https://doi.org/10.1108/EUM0000000001294

Publisher

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MCB UP Ltd

Copyright © 1992, MCB UP Limited