Challenges in productivity measurements & improvements in service organizations

Service productivity is dependent on intellectual activities and service provider abilities and motivations. Service productivity can impact overall performance very significantly and therefore must be measured and improved. Service productivity can also be improved through technology interventions. This research paper seeks to provide answers to practicing managers about means of measurement of productivity & ways to enhance it across a wide range of services. Some of the important factors influencing productivity are work habits, personal feelings and attitudes of service providers and the work climate. Skill development and productivity enhancing initiatives of the management also play a critical part. While technology can be a productivity improvement tool, if not used wisely it can have a detrimental effect on productivity. Human involvement and judgment cannot be replaced by technology. Also variations in Service Productivity can be caused by differences in service quality. Hence measurements must be made keeping in view parity of service quality and outcomes. The paper discusses a number of case studies by way of demonstration of how productivity can be enhanced. Finally the authors have suggested concrete steps that can be taken to enhance productivity in service organizations.