Productivity Measurement Solutions

Productivity measurement is an important concept that every business house today should implement. Two companies with identical output/revenues need not have the same profits, the reason being difference in productivity. Productivity is the ratio of total production to total resources used. Let us assume that Company A and Company B have the same output every month while Company A has 200 employees and Company B has only 100 employees; in this case the productivity of Company B is greater than Company A and hence the profitability and net income of Company B will be higher than Company A for the same output. In the highly volatile world of business, a company cannot ignore methods to improve the overall efficiency. A company cannot increase the profits without having productivity in the equation.

Productivity Measurement:

The first step in measuring productivity is constructing a production model. There are two approaches to it, the first is using a mathematical formulae (usually used in macro-economics) and the other is based on arithmetic models used in micro-economics. Most productivity measurement systems are based on the latter.

It is important to measure productivity because it identifies opportunities to increase it. One of the most critical areas in productivity measurement is to measure how productive the employees are. Unlike machinery and processes measuring the productivity of employees is a bit difficult. It is hard to quantify the performance of an employee because there are various functions and each function has different levels of importance and inter-dependence. Measuring this can end in being a relative measurement rather than absolute.

Performance  Metrics:

The entire process of productivity measurement for employees can be simplified by introducing performance metrics. It involves three steps

  • Establishing the requirements
  • Identifying all the quantifiable outputs of an employee
  • Fixing targets against which an employee’s outputs can be scored


These key performance indicators or performance metrics will act as a measurement tool, and a company can use this tool towards reaching their productivity goals. Many small and mid size companies will not have the luxury of having a department to take care of this entire process. It is easier to outsource this entire process to a reputed service provider rather than trying to do it in house.

Productivity Measurement SolutionToday companies also face the challenge of the internet boom, the employees tend to spend a lot of time over the internet rather than focusing on the work. Companies have implemented website blocking and PC monitoring software. However these solutions cannot prevent employees from wasting time as today employees have smart phones and anything that can be done via a computer can be done through a smart phone. A reputed service provider like MySammy offers excellent performance measurement solution. They offer a remote monitoring software solution; this software when installed will evaluate the employee’s performance by collecting their computer activities and will create easy to understand reports with graphs and charts. So the manager/management can make an objective comparison and also set targets for the employees. For more details about using this software for tracking personal internet use at work check here