A Perspective On Partial And Total Productivity As Measured At Tsb - Agricultural Division

Productivity measurement techniques can be categorized in partial and complete measurements depending on the technique used. Complete measurement requires the use of both physical and financial data in analysis and the possibility to reconcile back to the financial statements of the organisation. At farm production level partial measurements are normally used to measure the productivity of certain aspects in the production process. The danger exists that interpretation from partial measures may be biased and consequently lead to sub-optimum decisions. This may be the case were labour is substituted with machinery were the gain in labour productivity is not off set against the productivity loss in capital. The relevant importance of the available measurement techniques at the different hierarchical levels in the organisation, is indicated. From the discussion it will be evident that complete productivity analysis enhance a holistic approach towards business decision making. It is also important to follow a longer term orientation towards productivity measurement and improvement. Uncontrollable factors may have a negative effect on productivity in the short term. A trend line over time will indicate the success or failure of the organisation to reach productivity improvement.