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.
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