Productivity Measurement: [1] Measurement plays an important role in management of productivity. It helps to determine organization is progressing well or not. It also provides information on how effectively and efficiently any organization manages its resources. [2] Productivity is difficult to measure and can only be measured indirectly, that is, by measuring other variables and then calculating productivity from them.
Procedures (Methods) of Productivity Measurement: It has been said that, productivity measurement is the ratio of organizational outputs to organizational inputs. Thus Productivity is usually expressed in one of three forms: [1] Partial productivity measurement (PPM) [2] Multi-factor productivity measurement (MFPM) [3] Total productivity measurement (TPM)
[1] Partial Productivity Measurement (PPM): Partial productivity measurement is used when the firm is interested in the productivity of a selected input factor. It is the ratio of output values to one class of input. Inputs may be Labor, material or capital
Partial Productivity consist of
[a] Labor Productivity (LP):
It is indicated by units of output per labor hour or unit of output per shift. (Units/Hour)
[b] Machine Productivity (MP):
It is indicated by units of output per machine hour or output per unit machine. (Units/Hour)
[c] Energy Productivity (EP):
It is indicated by units of output per KW-hr or Rupee value of output per KW-hr (Units/KW-Hr)
2] Multi-factor Productivity Measurement (MFPM):
This productivity measurement technique is used when the firm is interested to know the productivity of a group of input factors but not all input factors.
[3] Total (Composite) Productivity Measures (TPM): A firm deals about composite productivity when it is interested to know about the overall productivity of all input factors. This technique will give us the productivity of an entire organization or even a nation.