How do you measure productivity LEARNOVITA

How and why to measure and analyze employee productivity | Everything You Need to Know

Last updated on 04th Nov 2022, Artciles, Blog

About author

Sweetha Manikam (Business Analytics Analyst )

Sweetha Manikam is the Sr. Business Analytics Analyst with 5+ years of experience. She has expertise in ABC analysis, SPI, factory overhead, R&D capex, sunk cost, economic order quantity (EOQ), and EAC.

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    • In this article you will learn:
    • 1.Introduction to analyze Individual Productivity.
    • 2.Tools.
    • 3.Features and Characteristics.
    • 4.Tips for measuring productivity.
    • 5.Benefits.
    • 6.Conclusion.

Introduction to analyze Individual Productivity:

Productivity analysis is the carried out to identify areas of a potential productivity improvement projects based on a statistical data collected during the analysis. The analysis also a pinpoints areas of delay and an interruption that lead to a loss of productivity. The first step in any productivity improvement initiative is be understanding the current state of the operations. Productivity analysis offers a baseline indicators that will also provide a data that will be used to find potential productivity improvement objectives and also potential cost savings.

Reliable data derived from a productivity analysis also makes a following results possible:

  • A Setting productivity improvement goals.
  • An Immediate elimination of a non-value added activities.
  • Ability to be estimate potential savings based on a analysis results.

Tools:

Graphic rating scales: A typical graphic scale uses a sequential numbers, such as 1 to 5, or 1 to 10, to rate employee’s relative performance in a specific areas. Scales are often used to rate the behavioral elements, such as understands job tasks or a participates in decision-making. Or they may note frequency that an employee performs the certain task or behavior, such as “always,” “often,” “sometimes,” or “never” coming to work on a time. Can customise a scales to suit business needs.

360 degree response: This well-named system takes into the account employee’s performance feedback, opinions and an assessments from the circle of people in company with which they work. This may include a coworkers, supervisors, and others. When an evaluate inputs from the multiple sources, and can note positive and negative similarities and trends. can also identify the areas that may need additional measurement and also support.

Self-assessment: Asking an employee to evaluate own performance can be very an effective. Often, employees can be a more critical of a performance. can use a form that needs a multiple choice answer, an essay-type answer, or the combination of both. Comparing a self-appraisal to the own objective evaluation can be helpful in finding the similarities and discrepancies along with richer understanding of employee performance. This can generate an interactions that can be beneficial to the employee development.

Management by Objectives (MBO): Also known as a “management by results”, it is a process by which an employees and managers together are create objectives. They jointly set an individual objectives, how they align with a company’s goals, and how performance will be measured and evaluated. MBO gives employees clear understanding of what is an expected and allows them to participate in process, which can promote a better communication and increase the motivation. checklist. It will also identify a people who need additional training and knowledge to become a more skilled.

Tool to analyse Employee Performance

Features and Characteristics:

1. Procedure for the Handing over Symbols:

Measurement in general terms is a process of assigning symbols to the observations in some meaningful and consistent way. In a process of measurement the investigator does not specify a number of his choice but according to specific and clear rules.

2. No Absolute Zero Point:

There is no absolute zero point in a mental measurement. This is relative to some arbitrary standard. A student has secured zero marks in the examination or subject. It doesn’t mean that you don’t know anything about an exam or subject. Cannot claim that a guy with I.Q. One with I.Q out of 110 is twice as intelligent as a boy. 55’s.

3. Process of Quantification:

A Measurement involves a process of quantification. In a process of measurement, numbers are used to represent quantities of a property. Quantification indicates how much or to what extent that a particular quality is present in the specific object.

4. A Complicated Process:

The process of measurement in behavioral science is the complex as well as difficult. Attribute or a characteristic is not be measured directly by a scale but character is the measured indirectly by a behavior. The basis of measurement is behavior of a subject. Both a direct and covert behaviors are used in the process of measurement.

5. Sense of Infinite:

Measurement in a behavioral science conveys the sense of infinity. This means that are cannot measure an entire characteristic of an individual.

6. Mental measurement is often subjective:

The accuracy of a measurement depends on a person who measures it. It also depends on different factors like a test condition, type of test items, defect in a language, physical and emotional state of etc.

Benefits of Employee Productivity

7. Units Not Fixed:

Units in a mental measurement are not fixed. Cannot get a same value for every individual. It is heavily dependent on psychological and educational tests which vary in content and purpose. A person can get various marks in different intelligence tests.

8. Instruments in a Measurement Not Accurate:

The tools used in an educational and psychological measurement are be never accurate; Rather they are an approximate.

Tips for a measuring productivity:

Focus on a profit:

  • Getting a job done.
  • A time management.
  • Feedback and a peer evaluation.
  • Comparison of a labor time for goods produced.
  • Monitoring an employee progress.
  • A customer satisfaction.
  • Focus on a profit.

Benefits:

  • Measures of a process performance are ‘vital signs’ of organizational health providing the assessment of a current state giving clues to potential health issues and showing the progress towards recovery.
  • A government organization implementing the new service did a lot of planning a large number of process models and more sessions with a wide range of stakeholders. Green lights are everywhere so the service started with a proper ‘ribbon cutting’.
  • Two days later an everyone was relieved that a launch went well; Two weeks later there was gradually increasing murmur of the complaints Two months later service delivery was at virtual standstill and a murmur was a hoarse one.
  • A month after that it was a finally discovered that a critical process in a service delivery was failing frequently, causing significant rework and an extremely long delays. Further can analysis found ways to reduce a delay by as much as a 95%.
  • Normal service are delivery resumed after a backlog was resolved. The memories of a customer and employee fuss however will never be erased.

Conclusion:

The challenge facing the researchers and practitioners is to develop the internally consistent and also comprehensive productivity measurement system that accounts for a productivity of individual workers, work groups, business units and organizations. The degree to which this goal can be achieved will find the organization’s ability to effectively manage resources and direct human effort toward an organizational goals. It can help them regain a lost industrial leadership and understand an apparent contradictions that arise when an expected productivity gains are not be achieved.

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