Organizational productivity hinges upon controlling the interplay of at least three variables, namely capital, technology and human resources. Effective control systems require information on what is occurring and a means of correcting or adjusting inputs when sensors indicate that change is needed. Productivity gains due to capital are typically measured by sophisticated accounting systems (for example, profits and costs, pro-forma balance sheets and budgets). Gains due to technology are assessed through the control systems of similar operations (for example, comparisons of inputs and outputs, process time, equipment efficiency and effectiveness). The contribution of an organization's human resources to productivity is more difficult to measure but it can be assessed in terms of work outputs produced or work behaviours exhibited over a specified time period. Performance appraisal involves assigning a value to employee behaviours or work outputs in terms of a criterion of productivity effectiveness (quantity, quality, timeliness).

Vandra L. Huber & Sally Riggs Fuller