Utilizing the Shapley Value to Measure Individual Productivity in the Service Industry

Measuring productivity, particularly at the individual employee level, has significant implications for organizational success, such as the standardization and guidance of employee behavior. Although various statistical methods have been applied to measure overall productivity, an alternative approach that considers intricate individual-organizational relationships and data availability to develop a robust measurement model is required. To address this gap, this study adopts the Shapley value concept from cooperative game theory to quantify individual productivity in the service industry. By treating the contribution to hourly revenue as the expected marginal contribution of each employee, two methods are proposed for the different data structures available. Through simulations, these methods are compared with other statistical methods. The results indicate the feasibility and efficacy of the Shapley value approach for accurately measuring individual productivity with satisfactory levels of accuracy, stability, and practicality.