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Performance measures and worker productivity

Author

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  • Jan Sauermann

    (Institute for Evaluation of Labour Market and Education Policy (IFAU), Sweden, and IZA, Germany)

Abstract

Measuring workers’ productivity is important for public policy and private-sector decision-making. Due to the lack of a general measure that captures workers’ productivity, firms often use one- or multi-dimensional performance measures, which can be used, for example, to analyze how different incentive systems affect workers’ behavior. The public sector itself also uses measures to monitor and evaluate personnel, such as teachers. Policymakers and managers need to understand the advantages and disadvantages of the available metrics to select the right performance measures for their purpose.

Suggested Citation

  • Jan Sauermann, 2023. "Performance measures and worker productivity," IZA World of Labor, Institute of Labor Economics (IZA), pages 260-260, April.
  • Handle: RePEc:iza:izawol:journl:2023:n:260
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    References listed on IDEAS

    as
    1. Andries De Grip & Jan Sauermann, 2012. "The Effects of Training on Own and Co‐worker Productivity: Evidence from a Field Experiment," Economic Journal, Royal Economic Society, vol. 122(560), pages 376-399, May.
    2. Ghazala Azmat & Rosa Ferrer, 2017. "Gender Gaps in Performance: Evidence from Young Lawyers," Journal of Political Economy, University of Chicago Press, vol. 125(5), pages 1306-1355.
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    5. Oriana Bandiera & Iwan Barankay & Imran Rasul, 2010. "Social Incentives in the Workplace," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 77(2), pages 417-458.
    6. Alexandre Mas & Enrico Moretti, 2009. "Peers at Work," American Economic Review, American Economic Association, vol. 99(1), pages 112-145, March.
    7. Ghazala Azmat & Rosa Ferrer, 2017. "Gender Gaps in Performance: Evidence from Young Lawyers," Journal of Political Economy, University of Chicago Press, vol. 125(5), pages 1306-1355.
    8. Fabian Waldinger, 2010. "Quality Matters - the Expulsion of Professors and Ph.D. Student Outcomes in Nazi Germany," CEP Discussion Papers dp0985, Centre for Economic Performance, LSE.
    9. Tanguy Brachet & Guy David & Andrea M. Drechsler, 2012. "The Effect of Shift Structure on Performance," American Economic Journal: Applied Economics, American Economic Association, vol. 4(2), pages 219-246, April.
    10. Raj Chetty & John N. Friedman & Jonah E. Rockoff, 2014. "Measuring the Impacts of Teachers II: Teacher Value-Added and Student Outcomes in Adulthood," American Economic Review, American Economic Association, vol. 104(9), pages 2633-2679, September.
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    Cited by:

    1. Siew Ling Yew & Jie Zhang, 2023. "Health Externalities to Productivity and Efficient Health Subsidies," CAMA Working Papers 2023-31, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    2. Kseniya Bortnikova, 2020. "Beauty and Productivity: A Meta-Analysis," Working Papers IES 2020/18, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Jun 2020.
    3. Tommaso Reggiani & Rainer Michael Rilke, 2024. "Designing Donation Incentive Contracts for Online Gig Workers," Journal of Business Ethics, Springer, vol. 190(3), pages 553-568, March.
    4. Reggiani, Tommaso G. & Rilke, Rainer Michael, 2020. "When Too Good Is Too Much: Social Incentives and Job Selection," IZA Discussion Papers 12905, Institute of Labor Economics (IZA).
    5. Juliana Abagsonema Abane & Ronald Adamtey & Virceta Owusu Ayim, 2022. "Does organizational culture influence employee productivity at the local level? A test of Denison's culture model in Ghana’s local government sector," Future Business Journal, Springer, vol. 8(1), pages 1-13, December.
    6. Alberto Chong & Angelo Cozzubo, 2019. "Perverse Incentives? Labor Market Regulation and Performance in the Public Sector," Southern Economic Journal, John Wiley & Sons, vol. 86(1), pages 271-285, July.

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    More about this item

    Keywords

    worker productivity; performance measures; human resource management;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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