What is Productivity Measurement and how is it measured.?

Productivity Measurement for Organizational Efficiency

Productivity Measurement for Organizational Efficiency

According to Info-Tech Research Group, as modern offices expand beyond the confines of physical space, it becomes more difficult to monitor employee activity. While most organizations have a general idea about employee output, measuring employee time spent on official work can greatly enhance productivity.

Employees tend to spend significant time in unproductive work without realizing it. Organizations may also be subjecting the employees to a work environment that does not create an optimal work-culture and satisfactory work-life balance.

Measurement of productivity will surely motivate stakeholders if there is mutual agreement on what is being measured, how it is measured, transparency of its usage and a feedback back mechanism where all the stakeholders can enhance the means to achieve the target. An example is any sports, where there is a measure of what you have achieved, what you are achieving and what you need to achieve.

Traditional organizational productivity measurement like employee self-reported time sheets could be inaccurate as well as subjective, and therefore prone to misrepresentation. Tracking and reporting individual productivity more accurately and objectively and using the measurements to implement efficiency enhancement is becoming critical for all organizations.

Hence it is critical to establish a “Measurement System” that all stakeholders are aware of, have committed to using and will systematically use to make decisions based on the actual values measured.

The measurement of time at work through activity monitoring leads to improved human capital and significant cost savings through better allocation of human capital in people-centric organizations. This data can enable organizations to identify performance issues or the need for training while gaining deeper insight into activity and productivity.

It is important for employees and the organization to understand how time is spent on meetings, on planning, support, design, coding, testing, documentation, etc. This helps in better project estimation, and on time and improved output. It also helps in achieving work-life balance and recognizing highly productive employees.

While productivity tracking is critical, it must be done without intruding into employee privacy. Employees must be informed and be aware that work activity is being monitored for the right reasons. Any such solution must provide an option for “personal time” when employee activity is not monitored. Also, data that is collected require employees’ approval before submission. Such a solution is an ideal blend of efficiency without loss of privacy.

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