The Tantalizing Concept of Productivity

Abstract

"Productivity" really means "productivities," according to Professor Thorelli of the University of Chicago Graduate School of Business, for organizations have multiple goals. Studying and adjusting the productivity of subordinate levels of organizations may be dangerous to total productivity. Measuring resource consumption or total input is difficult in dollar terms and more so in labor terms; management input in particular is elusive. "Effectiveness," "efficiency," and "profitability" must be distinguished from productivity. The greater the creative element in work, the more difficult measurement becomes. Yet, despite such grave problems of measurement, the elusive concept of productivity will be given an increasingly important role in research and policy de terminations.