Measuring productivity a challenge

Causal model provides insights into efficiency of knowledge workers
By Gail Evans
|Canadian HR Reporter|Last Updated: 03/22/2010

The question of how best to measure the productivity of employees has long been debated.

“The measurement of the quality of work, not just the quantity of work, is critical to determining productivity in knowledge workers,” says Peter Drucker in his book Management Challenges for the 21st Century. “Business practices see manual workers as a cost… while knowledge workers must be seen as a capital asset.”

Research conducted over the last 10 years by Nick Bontis, an associate professor at the DeGroote School of Business at Hamilton’s McMaster University, and others has been instrumental in the development of causal models that demonstrate the organizational factors that appear to drive effective human capital management practices in several industries.