Applying Objectives Matrix Method for productivity measurement after new technology introduction

Abstract

Objectives Matrix Method is developed by J. Riggs for rating productivity inside an organization. Simplicity and generality of the method allow its application in various kinds of business, in specific business situations and cases. One way of using this method is using it as model for evaluating and rating the productivity in an organization after new technology introduction. Speaking of viewing effects of new technologies, main advantage of this matrix is that both aspects related to productivity - efficiency and effectiveness, can be taken into quantitative consideration by decomposing of overall productivity factors. First of all Objectives Matrix Method is developed for measuring productivity in manufacturing. However careful selection of productivity factors inside the matrix allows us to apply it successfully to services as well, using all of its advantages for tracking efficiency and effectiveness of providing services. List of productivity factors in the matrix can be altered or new significant factors concerning specific firm can be added. Based on selected factors, we can determine the level of technology efficiency and effectiveness in the firm by using suitable method of expert rating. The applications of Objective Matrix Method in the real business situations will be given and analyzed in the paper.