Abstract

The present study advances a novel productivity function of knowledge workers. Cognitive science studies provide clear evidence that, for a given event, there is a difference between a worker's cognitive time and physical clock time; this difference gives rise to a cognitive time distortion. The proposed productivity function accounts for workers' dual experiences of time and the kinds of contracts utilized by an economic organization and its customers and workers. This function shows—for the first time and contrary to intuition—that, given certain conditions, workers' cognitive time and the form of contracts utilized are the only conditioners of knowledge worker productivity. The proposed productivity function unearths a hidden economic lever effect whereby a minor degree of time distortion generates a significant level of worker inefficiency. This constitutes a novel contribution to the literature on knowledge worker productivity.

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