Practical Productivity Analysis for Management: Part I. Analytic Framework

Abstract

In this first of two papers, the nature of productivity changes and their measurement are examined. Various widespread misconceptions of such changes and of the means of measurement are discussed. The multiple requirements of a practical productivity analysis system are outlined, and an analytic framework which meets these requirements is presented. Samples are provided of empirical findings which have resulted from the use of this framework. The second paper will provide a discussion of the determinants of change in productivity relationships and problems encountered and experiments used in productivity measurement. A guide to analysis and interpretation is provided.