As business owners and managers, we are concerned with the effective management of performance while maintaining high customer satisfaction levels. We aim to satisfy all organizational stakeholders while fairly compensating staff members and keeping prices competitive.
Compensation is often tied to performance measures. The traditional performance measure used in the past has been productivity. The U.S. Bureau of Labor Statistics defines productivity as “output per man-hour.”However, you need to consider, “can team creativity and knowledge be measured in this manner?”
Productivity, the ratio of how well inputs(labor hours) are converted into outputs (goods or services)is easy to apply and to evaluate when the output is a repetitive production process, but what outputs are knowledge based and/or factors of creativity?
What do we need to measure in order to correlate desirable outputs, such as quality of service delivered and customer satisfaction levels, with inputs, such as creative design and expert knowledge?
How do you evaluate and estimate measures in order to calculate fair compensation and wages for knowledge workers? Please share your thoughts with us.
“Never confuse motion with action.” Benjamin Franklin





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