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Organizational Productivity Measurement: The Development and Evaluation of an Integrated Approach.

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Interim rept. Jan 84-Jul 86,

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This technical paper describes the results of a field evaluation of a new approach to the measurement of organizational productivity. This approach involves a identifying the objectives of the unit, b identifying measures or indicators of how well the unit is meeting these objectives, and c developing functional relationships between performance on the indicators and the contribution that those levels of the indicators make to overall effectiveness. The productivity measurement system was developed for five sections in maintenance and supply at an operational Air Force base. The productivity measures derived from the system were used as a basis for monthly feedback to the units for a period of five months. After this period, goal setting was added to the feedback for five months. Finally, incentives were added to the feedback and goal setting. Results showed the system to be a very effective method of productivity measurement and enhancement. Its implementation was effective, unit personnel were cooperative in developing and using it, and it showed good psychometric characteristics. The incumbents and supervisors of the units evaluated the system very positively. After the research was completed, the units continued to use the system on their own, and managers have requested that it be used in other units at the base. This approach shows promise for use in much larger organizational units. The basic measurement and aggregation strategy also has applications in management information systems, criterion development, test validation, measures of managerial performance, performance appraisal, and other situations where multiple sources of data must be combined into an overall index or judgment.

Subject Categories:

  • Administration and Management
  • Psychology
  • Personnel Management and Labor Relations

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