Productivity measurement and evaluation models with application to a military RD organisation

Abstract

This paper proposes models which employ a partial factor productivity measure with one input factor and some output factors of productivity measurement and evaluation of an R&D organisation. The partial factor productivity measure is obtained by dividing one input factor into the weighted sum for each output factor. In particular, the productivity evaluation model consists of an adjusted static index or adjusted dynamic index with regression equations for productivity measure through measurable characteristic variables of an R&D organisation. The results obtained using this model can provide a criterion for incentive pay allocation among organisational units for top management. An illustrative application is shown for five military R&D centres and an evaluative comparison is made among centres. Benefits of these models include usefulness in relative evaluation among units in other organisations if the regression equations are properly derived.