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Demystifying productivity and performance professional practice

The Emerald Research Register for this journal is available at www emeraldinsight com researchregister The current issue and full text archive of this journal is available at www emeraldinsight com - htm IJPPM Received October Revised February Accepted August PROFESSIONAL PRACTICE Demystifying productivity and performance Stefan Tangen Department of Production Engineering The Royal Institute of Technology Stockholm Sweden Abstract Purpose ?? Examines the ways in which the concepts of ??productivity ? and ??performance ? are dealt with in the literature demonstrating that terms used within these ?elds are often vaguely de ?ned and poorly understood Design methodology approach ?? Reviews related performance literature from the past years of both an academic and a practical nature Findings ?? Clari ?es the meaning of ?ve terms productivity performance pro ?tability ef ?ciency e ?ectiveness and shows how they are inter-related Research limitations implications ?? The creation of a common grammar is not an easy task one must therefore still accept the fact that people will continue to interpret the terms described in this paper in slightly various ways Practical implications ?? Measurement and improvement regimes are often built without a clear understanding of what is being measured or improved This can be regarded as simply a pragmatic approach to improvement or a missed opportunity to fully understand and then optimise important factors relating to competitiveness and success Originality value ?? The paper creates a terminology that reduces the existing confusion within the ?eld Certainly within academia and industry a shared vocabulary and grammar are helpful in ensuring rigorous and robust development of shared understanding Keywords Productivity rate Performance management Pro ?t Process ef ?ciency Performance appraisal Semantics Paper type Literature review Introduction The terms productivity and performance are commonly used within academic and commercial circles they are however rarely adequately de ?ned or explained Indeed they are often confused and considered to be interchangeable along with terms such as ef ?ciency e ?ectiveness and pro ?tability Sink and Tuttle Chew Sumanth Koss and Lewis Thomas and Baron Jackson and Petersson Measurement and improvement regimes are often built without a clear understanding of what is being measured or improved This can be regarded as International Journal of Productivity simply a pragmatic approach to improvement or a missed opportunity to fully and Performance Management understand ?? and then optimise ?? important factors relating to competitiveness and Vol No pp - success q Emerald Group Publishing Limited Certainly within academia a shared vocabulary and grammar is helpful in - DOI ensuring rigorous and robust development of shared understanding CProductivity ?? a multidimensional term Demystifying A very early appearance of the term productivity was as used by Quesnay in the Journal de l ? Agriculture over two centuries ago Since then it has been applied in many di ?erent circumstances at various levels of aggregation particularly in relation to productivity and performance economic systems Tangen a It has been argued that productivity represents one of the most important basic variables governing economic production activities Singh et