The general nature of the productivity ethic is discussed, with i t s limitations i n the public sector being stressed. The economic institutional model upon which the private sector business productivity construct is built is compared with the political institutional model operating in governmental agencies. Value paradoxes and dilemmas of government policymakers and administrators supporting agency productivity improvement efforts are analyzed. The study concludes that a better understanding of the limited nature of the productivity vision as well as i t s unique ethical characteristics would do much to improve governmental performance and the morale of public employees.