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OCR for page 302
Organizational Linkages: Understanding the Productivity Paradox
Index
A
Accounting practice
cost-center analysis, 137
information technology and, 22-23
productivity assessment of, 127
in traditional performance evaluation, 144-145
Aerospace industry, 240, 241, 245, 248
Aggregation of data, 119, 120, 128, 171-172, 176-177, 184
theory of composition, 185, 298
American Hospital Supply Corporation, 43-44
Automated teller machines, 46, 89-90, 202
Automobile industry, 2, 56, 61, 232, 264
B
Banking/finance industry, 17, 18-20, 21, 23, 56
automated teller machines, 46, 89-90, 202
Behavior modification
measurement of productivity and, 107-108, 110-111, 139-140
principles of, 108-109
Biotechnology, 2
Bottlenecks, 117, 144, 155-156, 165, 175
C
Clerical productivity, 20
information technologies and, 33-36, 86
Communications
in computer-aided design, 249-250, 251-252, 260
in downsizing efforts, 269-270, 273-275
formalization of, 28-29, 252
in gain-sharing plans, 70-72
indexicality of, 27
individual skills, 197
in lean production systems, 66-67, 68
negative effect on productivity, 166, 225
social effects, 230
in software development, 10, 221, 222, 223-225, 226-228, 294
speed of, 26-27
team design and, 221, 226-228
threat-rigidity effect, 270
Communications industry, 18
Competency multiplier effects, 219-220
Competition
international, 1-2
managerial overhead and, 264
strategic information processing, 43-44
Composition theory, 185-188, 190, 298-299
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Organizational Linkages: Understanding the Productivity Paradox
Computer-aided design
assessment methodology, 141-142
computer-aided manufacturing and, 241, 259
data collection and management in, 243
definition of productivity in, 10, 244
designer-team linkage, 250-255, 259-260
expectations for, 10-11, 241, 243
implementation, 256-257
information flow in, 249-250, 251-252, 254-255, 260
isolation of workers in, 245, 251-252, 259-260
organizational complexity in, 247-248, 255, 260
principal activities in, 242-243
productivity determinants in, 243-250
productivity linkages in, 11
research needs, 259-260
resource management in, 245-246, 257-258, 260
role of, 240, 241
specialization in, 244-245, 253, 260
supervision, 250, 253-254, 260
system support, 248-249, 255-256, 260
team-organization linkage, 255-259, 260
tools, 248
training, 247
as transitional technology, 246-247, 254, 258, 260
workstation time-sharing, 245-246, 257-258
Computer-aided manufacturing, 241, 259
Computer-aided software engineering, 221n
Computer industry. See Software development
Conceptual Schematic Productivity model, 111-114
Continuous improvement, 70-71, 107, 147, 150
Core activities, 61-62, 293
Corporate investments, 2-3, 15, 17-18, 46
Customer service, 44-46
automation in, 62
subtask productivity analysis, 59-60
D
Document preparation
document revisions in, 34-35
quality vs. quantity trade-offs, 29-30
spoken communication vs., 26-27
See also Information technology
Downsizing
attitudes of retained workers, 275-276, 283-284
compensation for casualties of, 275, 283
as cost reduction tactic, 278-279, 281
as crisis management, 269, 270, 271, 274
cross-level effects, 267-268
decision-making processes, 270-271, 273
early retirement incentives in, 279
employee targeting in, 263-264, 276-277, 282-283
implementation, 268, 269, 272
information flow in, 269-270, 273-275, 285
level of application, 266-267
linkage insensitivity in, 271
mistaken beliefs in, 271-280, 288
obstacles to productivity gains in, 268, 281-284, 285, 295
organizational productivity and, 284-286, 292
partial factor productivity in analysis of, 262
participants in design of, 272-273, 276-277, 282, 283-284, 285
as productivity initiative, 11, 263-268
removal of top management in, 279-280
simultaneous restructuring, 278, 284, 285-286
successful model of, 281-286, 288
total factor productivity in analysis of, 262
trends, 263-266
value analysis in, 283
E
E-mail, 35, 225, 252
speech vs., 27, 28
Educational system, 141
Effectiveness, as assessment criterion, 8, 106, 134-135
Efficiency
coordination in groups, 230
as organizational assessment criterion, 8, 106, 134, 135
Employee compensation
bonus plans, 70, 71, 86-87
in downsizing, 275
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Organizational Linkages: Understanding the Productivity Paradox
gain-sharing plans, 69-72
in lean production systems, 68
productivity and, 48
response to change and, 85
stock participation, 83
subtask focus of, 86-87
wages, 2, 48
work behavior and, 108-109
Employee evaluation
misuse of productivity assessments, 127-128
motivation in, 140, 168, 171
in Productivity Measurement and Enhancement System, 178, 182-183
productivity measurement for, 107, 127-128
productivity vs. performance, 126-127
unit cost analysis, 127
Employee participation
in downsizing decisions, 272-273, 282, 283-284, 285
employee ownership and, 83
in innovation process, 136-137
in office automation decisions, 85
organizational congruence and, 140-141
in Scanlon plan, 70
in technology implementation, 257
trends, 207
F
Focus of attention, 65, 70, 75
Food service industry, 21, 108
G
Gain-sharing plans, 69-72
Goal alignment, 9, 107-111, 119, 139-141, 174, 183-184, 187, 202
Group functioning
communications in, 223-225
in composition theory, 185
in computer-aided design, 11, 250-255
coordination in, 10, 215, 225
in decentralized environments, 207, 260
degree of interdependence in, 185-187
entrainment process in, 228-229
experimental modeling, 230-232
in Goal Alignment model, 109-110, 119
individual performance and, 82, 117-121, 214, 218-219, 229-232, 250-255
in information technology, 33-36, 48
in innovation process, 137
input factors, 118
as measure of individual performance, 197
in organizational performance, 118, 187, 232, 250-255
performance measurement system for, 178-184
productivity determinants, 205
productivity linkages in, 122-123, 129
productivity measurement of, 117-119
public goods problem, 226n
research, 4, 229-232
role accuracy in, 187
in software development, 10, 214-215, 216-217, 218-229, 231-233
supervision, 185, 253-254
team design, 220-223
types of group structures, 120-121
worker isolation as productivity factor, 251-252, 259-260
H
Hiring practices, 95, 188
for software development teams, 220
Hourly output, 2, 263
Human factors research, 3-4
I
Individual performance/productivity
aggregation of data, 119, 120, 128
behavior modification in measurement of, 107-108, 139-140
communication skills, 197
components of job performance, 195-197, 199
in composition theory, 185
in computer-aided design, 250-255
Conceptual Schematic Productivity model, 111-114
in context of total performance, 126-127
in core vs. peripheral tasks, 61-62, 64-65, 293
demonstrated effort as factor in, 197
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determinants of, 197-198, 204-206
direct observation for assessment of, 200-201
discipline as factor in, 197
downsizing effects, 267-268
effects of measurement on, 193
facilitative processes in organizations, 65-72
financial measures in assessment of, 127
gain-sharing plans and, 69-72
group performance and, 117-119, 128, 218-219, 250-255
information technologies and, 26-33, 35, 206
input measures, 124-125, 129
job-specific task proficiency, 195-196, 199
leadership skills, 197
management skills, 197
measurement of, 9
misuse of assessments, 127-128
model for IT assessment, 194-198
motivation in, 197, 198
non-job-specific task proficiency, 196
obstacles to measurement of, 128-129
obstacles to organization-level change, 58-64, 65, 73
organizational linkages, 56-64, 65, 72-76, 297-298
output determinants, 185
output measures, 123-124, 128, 168-170
peak vs. typical, 199-200
process determinants, 5-6, 58, 65-66
Productivity Servosystem model, 114-117
quality as assessment factor, 125-126
rating method, 200
research in, 4, 105-106
research needs, 77-79, 123-129
role linkages in, 57, 59-64
in software development team productivity, 215, 218-219
standardized sample for assessment of, 200
subtask relationships in, 57, 58-61, 86-87, 94-95
system determinants, 82
uncontrollable factors, 112-113
variables in, 111, 112
Industrial engineers, 4
Industrial/organizational psychology
behavior modification, 108-109
productivity research, 4
Information technology
administrative overhead in, 36-38
case studies, 211-212
clerical productivity and, 20
corporate investment in, 2-3, 15, 17-18, 46
corporate strategic applications, 43-44
customer service and, 44-46
ease of use and overuse of, 35, 41-42, 86
equipment obsolescence issues, 31
increases in workload related to, 33-36
interindustry comparisons, 16, 20-21
interrole effects, 62
intraindustry comparisons, 16, 21-24
labor productivity in, 145
latent structure, 195, 210
macro modeling of, 296-297
management control-seeking behavior, 40-41
management information systems, 21-22, 40-42, 48
multilevel analysis, 16-17
operator skills, 31-33
opportunity for profitability, 44-46
organizational communication and, 26-29
organizational structure and, 205-206
planning for implementation, 148
in poorly run vs. well-run firms, 25-26
productivity and, 47-49
productivity assessment, 194, 202, 207-208, 209
productivity components, 203-204, 210
productivity determinants, 205-206, 210
productivity improvement strategies, 206-208
quality vs. quantity trade-off in, 29-30, 48, 125
research needs in, 49, 158, 209-212, 297
sectoral analyses, 16, 17-20
socioeconomic impacts, 13, 14-15
spiraling investment in, 46-47, 90-91
subtask productivity analysis, 59-60, 86-87
See also Office automation
Innovation
international comparison, 137, 222
as organizational assessment criterion, 8, 106, 134, 136-137
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Insurance industry, 17, 23-24, 46
Internal Revenue Service, 30
International linkages, 1-2
IT. See Information technology
J
Job classification, 68
Just-in-time manufacturing, 28
L
Labor costs, 91, 124-125, 129
M
Management/supervision
assessment activities, 138-139
assessment of, 197, 263
in computer-aided design, 250, 253-254, 260
control-seeking behavior, 40, 150, 223
decentralized, 207, 260
of downsizing efforts, 268-271
in dynamic environment, 143-144
as group performance variable, 185
growth trends, 264
improvement/PDCA cycle, 139, 147
information culture in, 40-42
introduction of office automation, 84-85
in IT productivity, 206-207
knowledge of results, 140
leadership climate, 83
level-specific performance evaluation, 141-143, 153, 168
by numbers, 41, 42, 48
optimal production technique strategy, 155-156
as organizational subsystem, 88
as overhead in IT, 36-38
participants in downsizing efforts, 272-273, 276-277
paternalistic style, 269-270
performance measurement needs, 145-146, 147-149, 167
productivity analysis for, 107
in productivity assessment, 129
as productivity determinant, 131-132, 205, 206
removal of, in crisis, 279-280
resource allocation issues, 257-258
role of, 138
social context of decision-making, 270
in software development teams, 222, 223
strategic planning, 147-148
of successful downsizing, 281-284, 285
systems model, 133, 134, 146-147
total quality management, 93-94
traditional measures of success in, 263
Marketing activities
customer service, 44-46
growth in, 38
information technology in, 22-23, 44-46
Material velocity management, 143-144, 155-156
Measurement of productivity outcomes, 136
administrative/managerial factors in, 129
aggregation of data, 176-177, 184
analysis of variance in, 208
as behavior modifier, 107-108, 139-140
comparison across units, 183, 184, 188
in computer-aided design, 244
in context of total performance, 125-126, 297-298, 300
contingencies concept, 179-181
cultural aspects of organizations, 99
data sources, 24-25
defining linkages in, 132-133, 139
definition of productivity in, 8-9, 202, 209
design variables, 153-155
in engineering design, 10
errors in, 127
financial measures in, 127
flexibility in, 139, 143-144, 151, 189
goal alignment in, 139-141
goals of, 128
good qualities in, 142-143, 150-152, 201
group level, 117-119, 129
hierarchical model, 9
inadequacy of, 131, 133-134, 157-158
individual level, 9, 106-107, 195
in information technologies, 14, 15-16, 194, 195, 209
as input/output ratio, 55, 244
input units in, 124-125, 129
knowledge of results in, 140
latent variable vs. observed measure, 194
in management system model, 147, 148-149
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methods in, 200-201
misuse of results, 127-128
natural phenomenon, 166-172
new thinking in, 150-152, 158-159
obstacles to, 128-129
organizational conflicts as obstacle to, 166, 173-174, 177, 183-184
organizational goal alignment in, 9, 107-111, 119, 174, 202
at organizational level, 59
output units in, 123-124, 128, 168-171, 175, 185, 187, 190, 296
peak vs. typical performance, 197-198
performance components, 195-197, 199
performance determinants, 197-198
problems in, 24-26, 207
as productivity determinant, 193
productivity determinants, 204-206
Productivity Measurement and Enhancement System, 177-184, 211
profit impact of market strategies approach, 21
profound knowledge in, 133, 292-293
quality issues in, 125-126
research needs, 145-146, 209-212, 296-297, 300
role of, 106-107, 156, 167-168
scaling in, 193, 230-232, 295
selection of measures in, 152-153, 168-171
self-reported data in, 30
side effects of interventions in, 175-176
as source of productivity paradox, 7-8, 166, 171, 174-177
in strategic planning, 148
substantive theory, 193
task classification in, 120
taxonomy of linkage problems, 189
time lag effects, 7, 31, 157, 165, 175, 207
traditional measures, 139, 144-145
unit of analysis in, 202-203
user needs in, 139, 141-143, 154
welfare economics framework for, 18-19
Motivation, 66, 68-69, 71, 76
employee ownership and, 83
equipment problems and, 258-259
measurement of, 176, 178
operant psychology, 108-109
performance evaluation systems and, 140, 168, 171, 197, 198
productivity measurement as, 110-111
O
Office automation
definition, 84
employee response, 84-85, 97-98
generalizability of productivity outcomes, 91
implementation, 84-85
individual productivity and, 86-87, 94-95
labor costs and, 91
maintenance investments, 90-91
negative productivity effects, 86, 90, 91
obstacles to productivity improvement, 7
organizational subsystem interactions, 89-93, 95-96
symbolic values in, 97-98
technical problems in, 258
training, 91
See also Information technology
Organizational culture, 92-94, 97, 100
Organizational productivity
administrative overhead and, 36-38
analysis of variance in, 208
benefits of, 48
communications technologies in, 26-29
in computer-aided design, 255-259
conditions for improvement in, 72-76
coordination systems in, 65, 66-67, 68, 71-72, 74-75
core vs. peripheral tasks in, 61-62, 64-65, 293
defining linkages in, 132-133
determinants of, 205-206
downsizing and, 11, 284-286, 292
effects of measurement on, 193
equifinality of interventions for, 89, 93-94
facilitative processes, 65-72, 293-294
focus of attention in, 65, 70, 75
gain-sharing plans and, 69-72
goal alignment in, 173-174, 183-184, 187, 202
group functioning in, 33-42, 118, 187, 232, 255-259
horizontal linkages in, 295-296
implementation of interventions, 94
individual productivity and, 26-33, 57, 59-61
industry productivity and, 43-44
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information technology in, 26-42, 43-47, 48-49, 205-206
in lean production systems, 68-69, 72
management functions in, 40-42, 48, 206
motivation processes in, 66, 68-69, 71, 76
office automation and, 6-7, 84, 86-87, 90, 91
in open system theory, 94-96
organization-specific measures of, 9, 107-111, 119, 139-141
organizational evolution and, 65-66, 70-71, 75-76, 78
in poorly run vs. well-run firms, 25-26
problem-solving systems in, 65, 67-68, 69, 71-72, 75, 78
process determinants, 5-6, 58, 65-66, 293-294
research needs, 76-79
role linkages in, 57, 59-64
side effects of interventions, 7, 165-166, 175-176
social linkages in, 77
sources of intervention failure, 207
system determinants of, 82, 83, 293-294
in systems model, 8, 99-100
as target of downsizing initiatives, 266-267
theory of aggregation for, 185
theory of composition for, 185-188, 190, 298-299
types of organizational linkages in, 56-58
vertical linkages in, 295-296
wages and, 48
See also Productivity
Organizational structure
company size, 263
complexity of linkages in, 57-58, 299
in computer-aided design, 247-248, 255, 260
degree of interdependency in, 58, 88
design activities in, 11, 162-164
dynamic homeostasis in, 89, 92-93
effects of office automation in, 89-93
employee compensation, 68-72
group structure in, 119
information needs at different levels of, 141-143, 153, 168
in IT productivity, 205-206
lean vs. mass production systems, 66-69, 72
linkages in, 162-165
as obstacle to productivity growth, 7, 293
as open system, 87-89, 94-96
organizational evolution and, 76
organizational subsystems in, 88, 162-164
political context, 97, 98-99
as productivity factor, 165, 175, 293-295
project teams, 10
specialization in, 88, 89-90
subsystem linkage as source of paradox, 184-185
subsystem reverberations, 88, 90-91, 95
system-wide intervention, 81, 95-96
taxonomy of linkage problems, 189
team design, 220-223
types of linkages in, 55-56, 189
See also Downsizing
Organized labor, 63-64
P
Partial factor productivity, 55, 262
Postal Service, U.S., 60-61, 62, 63, 64
Problem-solving systems, 65, 67-68, 69, 71-72, 75, 78
in Scanlon plan, 70
Product development, 263
Productivity
capital/labor, 19-20, 21, 145
company size and, 263
in computer-aided design, 10-11, 241, 243-250, 260
computer security measures and, 249-250, 254-255, 260
corporate investment in, 2-3
definitions, 8-9, 55, 106, 136, 202, 209, 244, 262
determinants, 204-206, 209
downsizing effects, 265-268
importance of growth in, 1-2
information technology components, 203-204, 209
partial factor productivity, 55, 262
profitability and, 43, 44
resource management issues, 246, 260
software/hardware upgrades and, 246-247, 258, 260
strategic planning for, 147-148
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supervision issues, 253-254, 260
systems support in, 255-256, 260
task specialization in, 245, 253, 260
technology implementation in, 256-257
technology problems and, 258-259
throughput, 13-14
total factor productivity, 55, 262
trends, 2, 14-15
See also Individual performance/productivity;
Measurement of productivity outcomes;
Organizational productivity
Productivity Measurement and Enhancement System (ProMES)
aggregation of data, 184
conceptual base, 177
definition of productivity, 177
feedback report, 178, 182-183
linkage issues, 183-184
process, 178-181, 211
role of, 177-178
Productivity research
case studies in, 211-212
decentralized management, 207
downsizing effects, 284-287
individual level, 105-106
information technology, 14, 16-24
large group performance, 229-232
level of analysis, 3-4, 105, 161-162, 292, 295
linkages in software development, 218-219
multidisciplinary approach, 5
needs, 123-129, 145-146, 157, 185, 189-190, 259-260, 286-287, 294, 300
organizational linkages, 4-5, 162
software development teams for, 215
theory development, 74, 298-299
Productivity Servosystem model, 114-117
Profitability
company size and, 263
new technologies and, 44-46
as organizational assessment criterion, 8, 106, 134, 137
productivity and, 43, 44
Profound knowledge, 133, 292-293
Public goods theory, 226n
Purchasing procedures
computerization of, 43-44
corporate software, 32
organizational politics in, 98
Q
Quality
checkpoints, 135-136
information technologies and, 29-30, 48
as organizational assessment criterion, 8, 106, 134, 135-136
in productivity assessment, 8, 125-126
productivity rewards for employees, 87
total quality management, 93-94
Quality of work life, 8, 68-69, 106, 134, 136
R
Resource management, 245-246, 257-258
Retail settings, 92
Retirement incentives, 279
Robotics, 2
S
Scaling issues, 193, 230-232, 295
Scanlon plan, 69-72, 77
Security measures, 249-250, 254-255, 260
Shipbuilding industry, 2, 230-231
Side effects of interventions, 7, 165-166, 175-176
Size of companies, 263
Slack, 7, 11, 60-61, 63-64, 67, 73, 77, 78, 165, 188
Social linkages, 77
Software
in information technology productivity, 203, 246-247
product obsolescence as productivity issue, 31-32
spreadsheet modeling, 41-42, 90
Software development
analysis phase, 215
authority structure, 222, 228
coding operations, 216
communications in, 221, 222, 223-225, 226-228, 294
competency multiplier effects, 219-220
complexity of, 216
computer-aided, 221n
coordination in, 215, 216-226
design phase, 215-216
documentation of, 216
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entrainment process in, 228-229
individual-group linkages, 10, 218-219
in information technology productivity, 203
infrastructure costs, 223
interdependence of components, 217-218
object-oriented design, 221n
process, 215-216
productivity determinants, 214-215, 233, 294
reassignment of members, 229
research on linkages, 218-219
role of teams in, 214
team design in, 10, 214, 219, 220-223, 226-228, 294
uncertainty in, 217
as unit of analysis, 215
unit of output in, 124
Specialization, 11, 88, 89-90, 244-245, 253, 260
Spreadsheet programs, 41-42, 90
Steel industry, 2, 263
Strategic planning, 147-148
Systems theory
analysis of decision-making, 96
in design of measurement systems, 154
human resources assessment in, 96-97
limitations of, 96
of management, 133
open systems, 87-89
organizational functioning in, 133-137
in productivity interventions, 94-96, 299
subsystem interactions in organizations, 88-94
T
Tank crew performance, 232
Task classification, 120
Textile industries, 2
Throughput productivity, 13-14
Time lag effects, 7, 31, 157, 165, 207
Total factor productivity, 55, 262
Total quality management, 93-94, 136, 147
Training
after downsizing, 275, 283
competency multiplier effects, 219-220
in computer-aided design, 247
hardware/software obsolescence and, 31-33, 246-247
office automation, 85, 91
in problem-solving, 68
software development teams, 219-220
system interactions in, 83
V
Valve-manufacturing industry, 22-23
W
Wages, 2, 48
Warehousing/inventory activities information technology in, 43-44
Warehousing operations, 23
Waste, 190
Representative terms from entire chapter:
office automation
