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Demystifying productivity and performance

Demystifying productivity and performance Purpose – Examines the ways in which the concepts of “productivity” and “performance” are dealt with in the literature, demonstrating that terms used within these fields are often vaguely defined and poorly understood. Design/methodology/approach – Reviews related performance literature from the past 30 years (of both an academic and a practical nature). Findings – Clarifies the meaning of five terms (productivity, performance, profitability, efficiency, effectiveness) and shows how they are inter‐related. Research limitations/implications – The creation of a common grammar is not an easy task; one must therefore still accept the fact that people will continue to interpret the terms described in this paper in slightly various ways. Practical implications – Measurement and improvement regimes are often built without a clear understanding of what is being measured or improved. This can be regarded as simply a pragmatic approach to improvement, or a missed opportunity to fully understand and then optimise important factors relating to competitiveness and success. Originality/value – The paper creates a terminology that reduces the existing confusion within the field. Certainly, within academia and industry, a shared vocabulary and grammar are helpful in ensuring rigorous and robust development of shared understanding. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Productivity and Performance Management Emerald Publishing

Demystifying productivity and performance

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Publisher
Emerald Publishing
Copyright
Copyright © 2005 Emerald Group Publishing Limited. All rights reserved.
ISSN
1741-0401
DOI
10.1108/17410400510571437
Publisher site
See Article on Publisher Site

Abstract

Purpose – Examines the ways in which the concepts of “productivity” and “performance” are dealt with in the literature, demonstrating that terms used within these fields are often vaguely defined and poorly understood. Design/methodology/approach – Reviews related performance literature from the past 30 years (of both an academic and a practical nature). Findings – Clarifies the meaning of five terms (productivity, performance, profitability, efficiency, effectiveness) and shows how they are inter‐related. Research limitations/implications – The creation of a common grammar is not an easy task; one must therefore still accept the fact that people will continue to interpret the terms described in this paper in slightly various ways. Practical implications – Measurement and improvement regimes are often built without a clear understanding of what is being measured or improved. This can be regarded as simply a pragmatic approach to improvement, or a missed opportunity to fully understand and then optimise important factors relating to competitiveness and success. Originality/value – The paper creates a terminology that reduces the existing confusion within the field. Certainly, within academia and industry, a shared vocabulary and grammar are helpful in ensuring rigorous and robust development of shared understanding.

Journal

International Journal of Productivity and Performance Management – Emerald Publishing

Published: Jan 1, 2005

Keywords: Productivity rate; Performance management; Profit; Process efficiency; Performance appraisal; Semantics

References

  • Relationships between productivity, efficiency, utilisation, and quality
    Al‐Darrab, I.
  • Produktivitetsutveckling inom svenskt näringsliv – en studie baserad på nationalräkenskaperna, Hur mäta produktivitet
    Aspèn, U.; Bråthèn, A.; Cassel, P.; Ericsson, P.; Marelius, M.