Productivity And Its Measurement a Strategic Perspective
Productivity And Its Measurement a Strategic Perspective
Zenon S Zannetos
The book Productivity And Its Measurement a Strategic Perspective was written by author Zenon S Zannetos Here you can read free online of Productivity And Its Measurement a Strategic Perspective book, rate and share your impressions in comments. If you don't know what to write, just answer the question: Why is Productivity And Its Measurement a Strategic Perspective a good or bad book?
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The proposed productivity measure is superior to traditional proflta- 2 bility measures such as accounting return on investment (AROI) return on sales (ROS), return on equity (ROE), absolute earnings (E) and earnings per share (ERS) adjusted for inflation or not. Enough has been written in the professional literature about the last three measures, however, to motivates us to concentrate on the first two. By implication all the arguments presented for the AROI and ROS apply to the other three. F...irst, the denominator of AROI is capital invested which is strongly affected by price fluctuations and the time the investment is made. Thus, the ROI may be misleading in comparing the performance between different firms formed in different years and investing in a different time-related pattern. Although indices of capital goods are available and adjustments are feasible, they are -15- too aggregate to reflect the price levels of particular supplying Industries a firm faces. The more unique the firm is the more specialized the capital and the more difficult it is to obtain a market measure for capital goods adjustment.
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