Multi‐factor productivity measurement model for service organisation

Purpose – To discuss the concept of productivity in the service sector and to present a multifactor productivity measurement model for a service organisation. Design/methodology/approach – Employs a case study approach, featuring a service organisation which provides a range of engineering services to different industries. The model focuses on objectives of the organization and overall results rather than the individual departmental activities. Findings – The case study shows how different factors of static, dynamic and development parameters can be taken into account to calculate the total productivity of an organisation. Research limitations/implications – The case study organization represents only one industry sector. However, it is claimed that the generic model for productivity measurement described may be used by any type of service organisation. Warns that it is not always possible to assess the nature and extent of bias introduced by the measures selected and the weightages assigned to these measures. Practical implications – The model can determine the gap between what is actually accomplished and what it is possible to accomplish (unlike subjective targeting), providing the potential for improvement. Originality/value – The model presented is important in that it attempts to measure unmeasurable factors.