Partial Productivity Measurement
Productivity measurement is simply a quantitative assessment of productivity changes. The objective is to assess whether productive efficiency has increased or decreased. Productivity measurement can be actual or prospective. Actual productivity measurement allows managers to assess, monitor, and control changes. Prospective measurement is forward looking, and it serves as an input for strategic decision making. Specifically, prospective measurement allows managers to compare relative benefits of different input combinations, choosing the inputs and input mix that provide the greatest benefit. Productivity measures can be developed for each input separately or for all inputs jointly. Measuring productivity for one input at a time is called partial productivity measurement.
Partial Productivity measurement defined Productivity of single input is typically measured by calculating the ratio of the output to the input:
Productivity ratio = Output/Input
Because the productivity of only one input is being measured, the measure is called a partial productivity measure. If both output are measured in physical quantities, then we have an operational productivity measure.