Designing a Model for Measuring Manpower Productivity in the Project-based Service Organizations (Electricity Company as Case Study)

Manpower productivity index is one of the most important productivity measures. This index is
the ratio of added-value to number of the employees (or the employee’s salaries). Regarding
this fact that manpower cost, annual depreciation, and annual profit is almost fixed and isn’t
indicative of the organizations actual performance, therefore measuring added-value in the
common methods is fixed and unrealistic and is not function of the organizational performance.
Therefore, with respect to the project-based nature of such organizations, a large amount of
their budget is spent for the projects in progress and hence measuring the added-value through
the common formula and without considering projects means that large amount of the
organizations capital and manpower, which are involved in the project implementation, are not
considered in measuring added-value. Therefore, in order to measure the actual performance
of the organization, the added-value that is gained from the projects future exploitation should
be added to its added-value.
In the designed model, added-value is calculated so that all of the organizations outputs include
current activities and also the investments that will be exploited in the future. As a result, the
calculated value is overall reflects of the organizations performance and also manpower
productivity is calculated actually.
In order to measure the productivity in this method, the actual added-value that is achieved
from offering the services should be extracted from financial statements. In order to measure
the added-value of the projects in progress, the future incomes from their exploitation are
simulated during the projects lifetime and then take from maintenance costs and inputs; its
present value is calculated for the base year through engineering economics formula.
Since, manpower productivity is the ratio of added-value to the organizations manpower, it is
possible to measure every units and employee’s productivity through determining every their
role by organizational excellence models in creating the added-value and then determining
their role in the units added-value.
The designed model is implemented in an organization with the mission of supplying and
distributing the electricity energy and then every units productivity in this organization is
calculated through this method.