How to Measure Productivity and Performance in Service Sector
1
SERVICE INDUSTRY
Measuring Productivity and Performance in
Service Industry
Term Paper
2012
SERVICE INDUSTRY
2
Table of Contents
1. INTODUCTION ........................................................................................................................... 3
2. PRODUCTIVITY MEASURES ....................................................................................................... 4
2.1 India: The Growth Imperative .……………………………………………………………………………………….4
2.2
2.3
2.4
2.5
The concept of productivity in service sector………………………………………………………………….5
The quantity aspect of service productivity…………………………………………………………………….5
The quality aspect of service productivity……………………………………………………………………….6
Substantial and measurement issues in productivity………………………………………………………7
3. PERFORMANCE MEASURES……………………………………………………………………………………………….8
3.1 Is variance difficult to measure……………………………………………………………………………………….9
3.2 Principles of service management…………………………………………………………………………………..9
3.3 Measurement system……………………………………………………………………………………………………11
4. CONCLUSION…………………………………………………………………………………………………………………..12
5. REFRENCES………………………………………………………………………………………………………………………13
3
1. INTRODUCTION
In the past two decades, the Indian economy has evolved quite differently from most other advanced industrialized economies. The paper focuses on the issues faced during measuring productivity and performance in service sector. Unlike economies which have experienced a large increase in unemployment. The Indian unemployment rate in 2010-11 has been little different than in previous years.
This paper surveys the literatures on the difficulties of measuring productivity in the service sector in general and the IT industry in particular. In the service sector, the practical and conceptual problems associated with constructing appropriate indexes to measure productivity are substantial. Productivity shows whether the activity of an
SERVICE INDUSTRY
Measuring Productivity and Performance in
Service Industry
Term Paper
2012
SERVICE INDUSTRY
2
Table of Contents
1. INTODUCTION ........................................................................................................................... 3
2. PRODUCTIVITY MEASURES ....................................................................................................... 4
2.1 India: The Growth Imperative .……………………………………………………………………………………….4
2.2
2.3
2.4
2.5
The concept of productivity in service sector………………………………………………………………….5
The quantity aspect of service productivity…………………………………………………………………….5
The quality aspect of service productivity……………………………………………………………………….6
Substantial and measurement issues in productivity………………………………………………………7
3. PERFORMANCE MEASURES……………………………………………………………………………………………….8
3.1 Is variance difficult to measure……………………………………………………………………………………….9
3.2 Principles of service management…………………………………………………………………………………..9
3.3 Measurement system……………………………………………………………………………………………………11
4. CONCLUSION…………………………………………………………………………………………………………………..12
5. REFRENCES………………………………………………………………………………………………………………………13
3
1. INTRODUCTION
In the past two decades, the Indian economy has evolved quite differently from most other advanced industrialized economies. The paper focuses on the issues faced during measuring productivity and performance in service sector. Unlike economies which have experienced a large increase in unemployment. The Indian unemployment rate in 2010-11 has been little different than in previous years.
This paper surveys the literatures on the difficulties of measuring productivity in the service sector in general and the IT industry in particular. In the service sector, the practical and conceptual problems associated with constructing appropriate indexes to measure productivity are substantial. Productivity shows whether the activity of an
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